Buying and Selling a Home at the Same Time: What You Need to Know

Many homeowners find themselves in a situation where they need to sell their current home and buy a new one simultaneously. This can create stress, uncertainty, and confusion. How do you line up for both transactions? What if your home sells before you’ve found another one, or worse, you find your dream home before your current house is sold?

You’re not alone; many homeowners are navigating this same tricky situation. The good news? With the right planning and support, it’s absolutely doable.

This guide breaks down the process in simple, practical terms. Whether you’re upgrading, downsizing, or relocating, understanding how to navigate these two transactions together will help you make smarter decisions and avoid any mistakes.

Key Takeaways

1. You need a plan.

Managing two major financial transactions requires structure and a timeline. You’ll need to coordinate closings, moving logistics, and finances carefully.

2. The market will influence your strategy.

Whether it’s a buyer’s or seller’s market affects how fast you can sell—and how competitive it is to buy.

3. The right team makes a big difference.

Agents, lenders, and homebuilders who understand this process can guide you through every step and help avoid delays or surprises.

Understanding the Basics

Let’s start with a few key terms regarding buying a home:

1. Contingency: A condition that must be met for a real estate deal to go through. For example, a home sale contingency means you’ll only buy a new home if your current one sells.
2. Bridge loan: A short-term loan that helps you buy a new home before your current one sells. It's a financial "bridge" between two transactions.
3. Equity: The amount of your home’s value that you actually own. For example, if your home is worth $300,000 and you owe $200,000 on your mortgage, you have $100,000 in equity.

What to Consider Before You Start Your Home Search

1. Your Financial Position Before Purchasing a Home

Start by understanding how much equity you have in your current home. This helps determine what you can afford for your next home. If you need the equity from your sale for a down payment, you may need financing to “bridge the gap” (like a bridge loan or home equity line of credit).

• Tip: Talk to a lender early. They can show you what your buying power looks like and offer options based on whether you sell or buy first. True Homes works with 4 preferred lenders that we can team you with to find your best financing options.

2. The Type of Homebuying Market You’re In

In a seller’s market, homes sell quickly, sometimes within days. That’s good news for your sale, but buying your next home may be competitive.

In a buyer’s market, there are more homes for sale, giving you more options when buying, but it might take longer to sell your current home.

• Tip: Your strategy will change depending on market conditions. In a fast-paced market, you may need to make decisions quickly.

3. Risk and Timing When Buying a Home

The biggest challenge is timing. If you sell first, you might need temporary housing before your new home is ready. If you buy first, you’ll carry two mortgages until your current home sells.

• Solution: Some buyers use rent-back agreements (where you sell your home but rent it temporarily from the new owner) or new construction timelines (which offer predictability while giving you time to sell). There’s no one-size-fits-all answer. A good lender or real estate agent can walk you through these options based on your personal financial picture.

Market Conditions and What They Mean for You

According to Zillow, Ramsey Solutions, and Bankrate, timing and financing are the two biggest stress points when selling and buying at the same time.

• High-interest rates may affect how much home you can afford.
• Low inventory may mean fewer options when buying, but it could boost your selling price.
• Predictable timelines, like those offered by new construction homes, can help reduce uncertainty.



Step-by-Step: How to Buy and Sell a Home at the Same Time

Here’s a simplified roadmap to help you plan: