How to Buy a Home When You Haven’t Sold Yours Yet

Smart Strategies to Make a Smooth Transition Between Homes

You’ve found your dream home — but there’s just one problem: your current home hasn’t sold yet. Do you wait? Do you risk losing the new home? How can you move forward without getting financially stuck in the middle?

The good news: it’s entirely possible to buy a new home before you sell your current one. It just takes careful planning, the right strategy, and a bit of creativity.

Here’s how to do it:

1. Understand the Risks (and the Rewards)

Before jumping in, it’s important to know what’s at stake:

• You could temporarily own two homes (and two mortgages)

• Your current home may sell for less or take longer than expected

• There may be timing gaps between closings and move-in dates

But with the right approach, you can:

• Secure your next home without missing out

• Avoid rushed decisions or selling under pressure

• Move on your own timeline

2. Explore These 5 Smart Strategies

Option 1: Make a Contingent Offer

This means your offer to buy the new home is contingent upon the sale of your current one.

• Pros: Protects you financially

• Cons: Less attractive to sellers in a competitive market

• Tip: More likely to be accepted if your home is already listed or under contract

Option 2: Use a Home Equity Line of Credit (HELOC)

Tap into your current home’s equity to fund the down payment on the next one.

• Pros: Avoids selling first or draining savings

• Cons: You’ll carry more debt until your current home sells

• Tip: Apply before listing your home, as lenders are more flexible before it's on the market

Option 3: Bridge Loan

A short-term loan designed to “bridge” the gap between buying and selling.

• Pros: Gives you flexibility

• Cons: Higher interest rates and fees

• Tip: Great for buyers with strong credit and equity

Option 4: Rent Out Your Current Home

Turn your home into a temporary or long-term rental.

• Pros: Keeps the property while generating income

• Cons: You'll become a landlord — and still need a solid down payment

• Tip: Good option if your current home is in a high-demand rental market

Option 5: Negotiate a Rent-Back from the Buyer

Once your current home sells, ask the buyer to let you stay in the home temporarily after closing.

• Pros: Gives you time to close on your next home

• Cons: Must be negotiated upfront and included in the contract

• Tip: Most rent-backs are for 30–60 days, depending on the lender’s policy

3. Work With an Agent Who’s Done This Before

Navigating the buy-sell shuffle is all about timing, contract strategy, and negotiation. A skilled agent can:

• Coordinate both transactions

• Help you prioritize the right financial path

• Connect you with lenders offering creative financing solutions

4. Get Pre-Approved Early

Even if you’re planning to use equity or wait for your home to sell, it’s important to know what you qualify for — especially with today’s interest rates.

A pre-approval letter strengthens your offer and gives you a realistic idea of your purchase power.

Final Thoughts

Buying a home before selling your current one can feel like a juggling act, but it’s completely doable with the right game plan. By preparing your finances, exploring smart options, and working with a knowledgeable agent, you can make the leap with confiden