Most homeowners need to sell one home to buy the next. The right strategy depends on your equity, finances and the market — here are the common approaches.
1. Sell first, then buy
The lowest-risk path financially: you know exactly what you’ll net. The tradeoff is you may need temporary housing.
2. Sell with a rent-back
You sell, then rent the home back from the buyer for an agreed period while you buy your next one. This needs to be negotiated and documented carefully.
3. Buy with a contingent offer
Your purchase depends on selling your current home. It’s simpler for you, but in competitive situations sellers may prefer non-contingent offers.
4. Buy first using bridge financing or equity
A bridge loan, HELOC or other financing can let you buy before you sell. It offers flexibility but adds cost and risk; talk to a lender and your tax advisor first.
Which is right for you?
Erik can run the numbers on each scenario using a current valuation of your home. Start with a free home value report.
This article is general information, not legal, tax or lending advice. Consult the appropriate licensed professional for your situation.
