Top 9 Ways You Can Buy Property While Selling Your Old Home

Think back to when you walked into your new home for the very first time. It probably felt like you’ve finally got everything (well, at least a house) you’ve worked so hard for. You’ve turned your new house into a home and things have been great. But as time goes by, your once dream home no longer meets your needs, so you start contemplating buying a new home.

The thought of buying a new house while you're selling your current one can be overwhelming and you may not know where to start. Well, we have 9 options for buying and selling real estate at the same time.

Top 9 Ways You Can Buy Property While Selling Your Old Home

Buy Before Selling

If you surveyed top-rated real estate agents, you’d understand how low housing inventory is all over the country. Although inventory is relatively low in most markets, buying right now may be a good option for you because interest rates are still pretty low. Do keep in mind there's going to be a lot of competition for the same house (although agents report the number of bidding wars in their area has decreased to 37%).

Include a Sales Contingency with Your Offer

Should you find a house that you love, you could submit an offer with a sales contingency included. What this contingency means is that you can go through with the deal once your old home sells. If it doesn’t sell within a period, you could back out entirely.

Use a Bridge Loan

An option that you may have never heard of is using a bridge loan. A bridge loan is a high-interest loan that will have to be paid once your old home sells.

Cash in on Your Home’s Equity to Buy a New One

Much like a bridge loan, you could use the equity that’s accrued on your old home toward the new home. If you decide to do this, you’ll now have a lien on your home and the value of your property will be lower.

Are There Alternatives?

Do you have to sell your house right now? If you don’t, you could consider renting your home or putting it on a vacation rental site for the time being. You could even list your home as a rental with the possibility of renting-to-own.

Sell Now and Buy Later

Since inventory is so low, houses are getting offers almost as soon as they’re listed on the market. Sometimes houses are even being sold above asking. If you have somewhere else you could go (live with a friend, find a cheaper rental, etc.), you could sit on the profits of the sale and gain interest until you’re ready to buy.

Ask About a Rent-Back Agreement

In the unfortunate event that you’re unable to close on a house before your old one closes, you may want to ask the buyer if they’d consider a rent-back agreement. This option means that you’ll continue to live in the home and pay the new owner's rent (their mortgage payment) until you’re able to close on your new home.

Make the Process Longer

Usually, people want a quick and easy closing, but it’s not necessary. You could ask the buyer if they’d be willing to stretch out the closing period so that you’ll have longer to buy a new home.

Trade-in Your Current Home

If you want a low-risk way to sell your home, you could consider trading in your home, much like you would with a car. HomeLight’s Cash Close or Trade-in Program is an excellent example of this and you can learn more about it here.

You Really Can Buy and Sell at the Same Time!

Selling your house while buying a new one isn’t going to be a walk in the park, but when you understand all of the options available to you, it does get a little easier. However, before you decide what you want to do, we can’t stress this enough… hire a real estate agent! They’ll give you insight and explain your options in your particular market.