The short version
There are four ways to sell one home and buy the next: sell first, buy first, buy contingent on your sale, or bridge with home equity. Each trades timing risk for financial risk. Decide which you can live with before you list, and let one coordinator write both contracts to work together.
Most move-up and downsizing clients have to sell one home to afford the next. There is no sequence without a trade-off; the job is to choose the trade-off you can live with. Nothing here guarantees a closing order or a financing outcome.
The four sequences
1. Sell first, then buy. You know your proceeds before you commit. The risk is timing: you may need a short-term rental or a rent-back from your buyer. Many sellers negotiate a rent-back of a few weeks to bridge the gap.
2. Buy first, then sell. You move once and avoid a temporary home. The risk is carrying two payments and needing to qualify for the new loan while the old one is open. Lenders evaluate this differently; talk to yours before you write an offer.
3. Buy contingent on selling. Your offer includes a contingency that you must sell your current home. In a competitive situation this offer is weaker, and sellers may keep showing the home. It works best when your home is already under contract or when the seller has few alternatives.
4. Bridge financing or a home equity line. Some households borrow against the current home to fund the down payment on the next. This has real costs and lender requirements; it is a lender conversation, not a real estate decision.
Questions to settle before you list
- What are your realistic estimated proceeds? Ask us for a net sheet built on your own payoff and expense figures.
- What monthly payment on the next home is comfortable? Run a monthly payment scenario.
- Which sequence matches your tolerance for a temporary move versus a financial overlap?
- Is there a date that cannot move (school start, job start, lease end)?
How we coordinate it
When both transactions are with us, one coordinator sees both files. Riley Hunter tracks the contingencies, deadlines, and closing dates on each side so the two contracts are written to work together. We tell you honestly when a sequence is unlikely to work in the current market rather than writing an offer that will not be accepted.
Next step
Talk through which of these apply to you with an agent, then request a home valuation to start with a clear picture of where you stand.
Questions this guide answers
Should I sell my home before buying the next one?
Selling first tells you your exact proceeds before you commit and carries the least financial risk. The trade-off is timing, usually solved with a short rent-back from your buyer or a brief rental.
Can I make an offer that depends on selling my current home?
Yes, with a sale contingency, but it is a weaker offer in competition and the seller may keep showing the home. It works best when your home is already under contract or the seller has few alternatives.
What is a rent-back?
An agreement that lets you stay in the home you sold for a short period after closing, often a few weeks, while you close on the next one.
This guide describes how The McBride Team works and the rules we see most often. Programs, forms, and fees change; the sources above are the current authorities, and your lender, closing attorney, and agent confirm what applies to you.