5 Ways to Buy Your Next Home Before Your Current Home Sells

One of the most common questions I hear from homeowners ready to move up or downsize is this: how do I buy the next house before I sell this one? Nobody wants to move twice or rent in between. Here is the honest answer. Most of your wealth is probably tied up in your home's equity, and you cannot reach it quickly. That is a timing problem, not a money problem, and there are several ways to solve it. Each one costs money, carries risk, or both. The five ways 1. A short term loan against your current home. Borrow against your equity for the new down payment, then pay it off when your home sells. Best for owners with plenty of equity and room in the budget. The risk is carrying two payments if the sale takes longer than planned. 2. Financing built for buying before selling. Some lenders offer programs designed for exactly this. They handle a lot in one place but usually cost more in fees. Get the exact cost in writing. 3. Sell, then rent back. Sell your home, collect your proceeds and rent it back from the buyer for a short time while you buy. Rent backs are common and usually priced by the day. They are typically limited to about two months because the buyer's loan generally requires them to move in within that window. 4. A contingent offer. Your purchase only goes through if your home sells. It is the lowest risk for you, but it is the hardest offer to get accepted. You may lose the home to a buyer with no conditions. This is the option people choose wrong most often. 5. A longer closing on both homes. Ask for extra time on your purchase and match the closing date with your buyer. It costs nothing and carries little risk, but both sides have to agree, so it should not be your only plan. Often the best approach is to negotiate for both a longer closing and a few weeks of rent back. The order that works