How To Buy a Home Before Selling Your Current One

By The Living Well Group

Charlsi Kelley and Sarah Kozlik are the dynamic leadership duo behind The Living Well Group Charleston, a top-performing real estate team known for its personalized service and deep commitment to client success.

In an ideal world, the sale of your old home would line up perfectly with the purchase of your new one. But in reality, real estate transactions don’t always go that smoothly. You might find your dream home before your current one sells, or worse, sell your house and have nowhere to go.

So, can you buy a new home before selling your current one? The short answer is yes. If you’re in this situation, here are three proven approaches we use with our clients to make this move less stressful and more successful.

1. Use a home sale contingency. One option is adding a sale contingency to your contract, meaning your new home purchase depends on selling your current home first. This protects you from being stuck with two mortgages, but in a competitive market, sellers may prefer non-contingent offers. It works best when your current home is in excellent condition, priced competitively, and is likely to sell quickly.

2. Look into financing options. If you’re hoping to make a more competitive offer without including a home sale contingency, financing tools like bridge loans or a home equity line of credit (HELOC) can help. These options allow you to access the equity in your current home to fund the down payment on your next one. It makes your offer stronger and often more attractive to sellers because it’s not tied to the sale of another property.

3. Turning your home into a rental. It’s not advice every agent gives, but in many cases, it can be a smart financial move. Especially if you refinanced during the COVID-19 pandemic and locked in a low interest rate, your mortgage payments may be significantly lower than current rental rates. That means you could potentially rent your house for more than you pay each month and generate positive cash flow.

One of my favorite examples of this: a client who bought their first home in 2021 with an interest rate under 3%. When they were ready to move, we ran rental comps and found they could lease it out for around $800 more than their mortgage payment. They ended up buying a new home without any contingencies, secured a great deal, and now earn about $600 per month in passive income, while living in a new place they love.

If you feel stuck between buying and selling, you do have options. Whether it’s a contingency, a creative financing approach, or keeping your home as a rental, we’ll find a solution that makes the most sense for your situation.

If you’d like to talk through the possibilities, we’d be happy to schedule a call and help you find a path forward. Contact us at (843) 822-7323 or info@livingwellcharleston.com. Let’s make your next move a confident one.