If you’ve only bought one home in your lifetime, you’ve likely wondered how to sell a house while buying a new one with as little overlap as possible. If it looks hard, that’s because it is. But not everyone can afford the luxury (or hassle) of moving their belongings into storage and holing up in a hotel or rental until the closing of the new home clears. Or taking on two mortgages until the original home sells. But there are ways to gracefully juggle the sale of your original home and the purchase of a new home with little to no overlap. Let’s look at the strategies that give you the best chance of a turbulence-free transition.
Know Your Market
The local real estate market conditions largely inform the right timing for real estate purchases and sales. Therefore, it’s important to gauge whether the relevant neighborhood is in a buyer’s market or a seller’s market.
| Buyer’s Market | Seller’s Market |
| Homes tend to sit on the market for longer periods. | Homes sell quickly and often garner multiple offers. |
| Selling first may be beneficial, since it avoids a prolonged overlap period with two mortgages. | Buying first may be more beneficial, since it will be easier to sell your home quickly. |
So, how do you know whether you’re in a buyer’s or seller’s market? We publish a convenient guide every month, highlighting the absorption rates of our most popular neighborhoods, so our readers can make informed decisions. But knowing how to sell a house in the Los Angeles market means understanding more than the buyer’s and seller’s favor. And that’s why the insights of a professional real estate agent are always advisable.
Using Contingencies to Your Advantage
If you think you have a particularly strong offer and don’t mind taking risks, you can venture to place a contingency on your offer that hinges on the sale of your existing home. Likewise, you can try this strategy in reverse by placing a contingency on your home’s sale that relies on your offer for your new home being accepted. Moves like this aren’t unheard of. However, in a highly competitive market, like those frequently found in Southern California, contingencies like these are exceedingly rare.
Talk to a Trusted Lender
A real estate professional isn’t the only one who can help you figure out how to sell a house while simultaneously purchasing a new one. You can also consult an experienced lender for insights into the arena of bridge loans and home equity lines of credit (HELOCs). These are short-term financing products that can help free up funds from your current home’s equity so that you can cover your down payment with cash. Ultimately, this can be a costlier path with its fair share of risks. But your agent should be able to steer you to a reputable lender who will clarify whether bridge loans or HELOCs are a feasible solution.
Buying Time with a Rent-Back Agreement
If you’re wondering how to sell a house but remain living in it until you’re ready to move into your new home, there’s actually an existing term for such an arrangement. It’s called a rent-back agreement. Under a rent-back agreement, the buyer agrees to allow you to remain in your original home until a fixed date after the closing. You literally buy extra time to close on your new home without the added burden of seeking temporary accommodations.
Working with a Real Estate Expert
Of course, if you’re really wondering how to sell a house while seamlessly purchasing a new one, no resource compares to an experienced and connected real estate agent. These experts understand the rhythm of the local markets, coordinating their efforts so all of the important factors connect at just the right moment. Your agent will help you meticulously plan the smartest course forward, effectively represent your best interests in negotiations, and snugly align closing timelines. This should be your first step if attempting a tight switch between an existing home and a new one.
Is it probable that you will move from your original home to your new home without any overlap? No. But is it possible? You bet. We’ve explored five avenues you can explore when determining how to sell a house while simultaneously buying one. But now it’s time for you to do your research, reach out to your professionals, and find that ideal timing.
With a brand that says as much as JohnHart’s, Senior Copywriter Seth Styles never finds himself at a loss for words. Responsible for maintaining the voice of the company, he spends each day drafting marketing materials, blogs, bios, and agent resources that speak from the company’s collective mind and Hart… errr, heart.
Having spent over a decade in creative roles across a variety of industries, Seth brings with him vast experience in SEO practices, digital marketing, and all manner of professional writing with particular strength in blogging, content creation, and brand building. Gratitude, passion, and sincerity remain core tenets of his unwavering work ethic. The landscape of the industry changes daily, paralleling JohnHart’s efforts to {re}define real estate, but Seth works to maintain the company’s consistent message while offering both agents and clients a new echelon of service.
When not preserving the JohnHart essence in stirring copy, Seth puts his efforts into writing and illustrating an ongoing series entitled The Death of Romance. In addition, he adores spending quality time with his girlfriend and Romeo (his long-haired chihuahua mix), watching ‘70s and ‘80s horror movies, and reading (with a particular penchant for Victorian horror novels and authors Yukio Mishima and Bret Easton Ellis). He also occasionally records music as the vocalist and songwriter for his glam rock band, Peppermint Pumpkin.
