6 Ways to Buy Before You Sell (and Which One’s Right for You)

Buying a new home while still owning your old one can feel like walking a tightrope. It’s an exciting step up—especially in Snohomish County’s competitive market, but also brings emotional and logistical stress.

This guide walks you through smart ways to buy before you sell, including how to tap into your home’s equity using bridge loans, HELOCs, home equity loans, and cash-out refinances. We’ll also cover contingent offers and modern buy-before-you-sell programs. Plus, a Snohomish County case study shows how one family made it work nearly stress-free.

The Stress of Buying and Selling at the Same Time

If you’re feeling the pressure of coordinating a sale and purchase simultaneously, you’re not alone. Buying before selling involves both emotional stress and logistical stress around timing.

Here’s why it’s so challenging:

• Timing is tricky: Your current home could sell fast, but finding the next one may take longer—or vice versa.

• Financial strain: Without access to equity, it’s hard to fund a down payment.

• Housing gap fears: Selling first could mean moving twice or living in temporary housing.

• Contingent offer complications: Sellers often reject offers dependent on the sale of another home.

Still, there are effective strategies to reduce that stress and most involve leveraging your home’s equity to bridge the gap.

Smart Options to Buy Before You Sell

Each of these solutions offers different benefits depending on your financial comfort level and timing needs:

Bridge Loan

Short-term financing that uses your current home as collateral to help fund your new purchase. These loans are usually interest-only for the first few months and come with higher interest rates.

Best when: You have strong credit, stable income, and expect your home to sell quickly.

Pros/Cons: Fast access to equity; non-contingent offers Higher costs; dual payments

Home Equity Line of Credit (HELOC)

A flexible option that lets you borrow against your equity as needed—often up to 85% of your home’s value. Interest is paid only on the amount you use.

Best when: You have equity available and want flexibility while keeping your existing mortgage in place.

Pros/Cons: Flexibility; interest only on used funds. Variable rates; needs early setup

Home Equity Loan

A lump-sum loan with fixed payments. This “second mortgage” is ideal for those who want predictability and don’t want to refinance their current mortgage.

Best when: You want a known monthly payment and access to cash without touching your original loan.

Pros/Cons: Fixed payments; one-time cash. Interest on full amount.

Cash-Out Refinance

Refinance your existing mortgage for a larger amount and take out the difference in cash. This gives you a lump sum to use toward your new purchase.

Best when: Interest rates are favorable or you want one monthly payment instead of two.

Pros/Cons: Single loan; lump-sum funds. May raise rate; closing costs.

Contingent Offer

This strategy ties your home purchase to the successful sale of your current property. While lower-risk financially, it can weaken your offer in a hot market.

Best when: You’re risk-averse, the market is less competitive, or your home is already listed or under contract.

Pros/Cons: Least financial risk. Often rejected in hot markets.

Buy-Before-You-Sell Programs

Offered by some brokerages or third-party services, these programs help you buy first and sell later through guaranteed sale prices, upfront equity advances, or trade-in options.

Best when: You want a smooth transition and are open to paying a convenience fee for certainty.

Pros/Cons: Convenience; smooth timeline. Higher fees; eligibility limits.

Case Study: A Snohomish County Move-Up Buyer’s Success

Meet the Crown family. They navigated a tricky market by using a HELOC to pull equity from their existing home. This gave them flexibility and the ability to make a strong, non-contingent offer on their next property.

As their buyer’s agent, I worked closely with them to tailor our showing strategy and fine-tune each offer. When it came time to sell, we prepared their home with professional photography, staging, and pricing strategy—and made last-minute adjustments to boost appeal.

Their home sold quickly, and they used the proceeds to pay off the HELOC. No temporary housing, no overlap stress.

“Nicole was patient, data driven, knowledgeable… She gives you the data, some thoughts about the home to consider, and an idea of some things the seller might like.”

Choosing the Right Option for You

Here’s how to find the strategy that fits your situation:

1. Assess Your Finances
   Consider your equity, income, savings, and debt. A quick Home Valuation can estimate how much equity you might access.

2. Know Your Risk Tolerance
   If two mortgages would keep you up at night, a contingent offer or buy-before-you-sell program may suit you best.

3. Consult Local Experts
   Your lender and agent can model out different options and share what’s working locally in Snohomish.

4. Understand the Market
   In a hot market, financing flexibility is key. In a slower season, contingent offers may be more viable.

5. Plan to Sell Efficiently
   Have a strong Listing Strategy in place, and keep a Plan B in mind just in case.

Frequently Asked Questions

1. Can I buy a house before selling mine?

Yes, it's possible to purchase a new home before selling your current one. Strategies include using a bridge loan, home equity line of credit (HELOC), home equity loan, cash-out refinance, or participating in a buy-before-you-sell program. Each option has its own benefits and considerations, depending on your financial situation and market conditions.

2. What is a bridge loan, and how does it work?

A bridge loan is a short-term financing option that allows you to use the equity in your current home to fund the purchase of a new one. It "bridges" the gap between buying your new home and selling your existing one. Typically, bridge loans have higher interest rates and are paid off when your old home sells. Learn more about bridge loans.

3. How does a HELOC help in buying a new home before selling the old one?

A Home Equity Line of Credit (HELOC) allows you to borrow against the equity in your current home. You can use these funds for the down payment on your new home. HELOCs offer flexibility, as you borrow only what you need and pay interest only on the amount used. However, it's advisable to set up a HELOC before listing your home, as lenders may be hesitant once the property is on the market.

4. Is a home equity loan a good option for buying before selling?

A home equity loan provides a lump sum based on the equity in your current home. It has a fixed interest rate and repayment term, making budgeting predictable. This option is suitable if you know the exact amount needed for your new home purchase. Keep in mind that you'll start repaying the loan immediately, even before your current home sells.

5. What is a cash-out refinance, and should I consider it?

A cash-out refinance involves replacing your existing mortgage with a new, larger one, allowing you to withdraw the difference in cash. This can provide funds for your new home purchase. It's beneficial if current interest rates are lower than your existing mortgage rate. However, the process can take time, and you'll need to ensure you qualify for the new loan.

6. Are there programs that let me buy before I sell without traditional financing?

Yes, some companies offer buy-before-you-sell programs. These programs may purchase your current home or provide funds to make a non-contingent offer on a new home. Once your old home sells, you settle the balance. These programs can simplify the process but may come with fees or specific eligibility requirements. Explore HomeLight's Buy Before You Sell program.

7. What are the risks of buying a home before selling my current one?

The primary risks include:

• Financial strain: Managing two mortgages simultaneously if your current home doesn't sell quickly.

• Market fluctuations: Potential decrease in your current home's value, affecting your expected proceeds.

• Loan qualification: Challenges in qualifying for a new mortgage while still holding the existing one.

It's essential to assess your financial stability and have a contingency plan in place.

8. Can I make an offer on a new home contingent on selling my current one?

Yes, you can make a contingent offer, which means your purchase depends on selling your current home. However, in competitive markets, sellers may prefer non-contingent offers. Strengthening your offer with pre-approval letters or flexible closing dates can make it more appealing.

9. How do I decide which financing option is best for me?

Consider the following:

• Equity in your current home: Determines eligibility for HELOCs, home equity loans, or cash-out refinances.

• Credit score and income: Affects loan approval and interest rates.

• Market conditions: Influences the feasibility of contingent offers.

• Risk tolerance: Assess comfort with potential dual mortgage payments.

Consulting with a financial advisor or mortgage professional can provide personalized guidance.

10. What steps should I take to prepare for buying before selling?

• Evaluate your finances: Understand your equity, credit score, and debt-to-income ratio.

• Get pre-approved: Strengthens your position when making offers.

• Research financing options: Determine which aligns with your situation.

• Plan your timeline: Coordinate the sale of your current home with the purchase of the new one.

• Consult professionals: Work with real estate agents and mortgage advisors experienced in buy-before-you-sell scenarios.

Top 10 Questions to Ask a Lender

1. What financing options do you offer for homeowners looking to buy before they sell?
   Start broad to see what tools are on the table and how experienced they are with move-up buyers.

2. How much equity can I access from my current home, and how is that calculated?
   Understanding your borrowing power is essential for planning your down payment and closing costs.

3. What are the interest rates and fee structures for each option—bridge loan, HELOC, equity loan, and refinance?
   Ask for clear numbers, including closing costs, origination fees, and if rates are fixed or variable.

4. How does a bridge loan work in terms of repayment, duration, and risks?
   Confirm how long you’ll have to repay it, what happens if your home doesn’t sell in that time, and whether it’s interest-only initially.

5. Can I apply for a HELOC or home equity loan even if I plan to sell my home soon?
   Some lenders freeze or reduce lines once a home is listed—know the rules before you list.

6. What credit score and income requirements do I need to qualify for each type of loan?
   Your eligibility and terms can vary widely based on your credit profile and debt-to-income ratio.

7. Are there any prepayment penalties or early closure fees with these loans?
   If you plan to pay off the loan quickly after your home sells, this is crucial to know upfront.

8. How long will it take to close on each type of loan or line of credit?
   Speed matters when you’re trying to make a competitive offer on your next home.

9. What happens if my current home doesn’t sell right away—how will that affect my payments or credit?
   Clarify how long you can carry both loans and whether you’ll have flexible options if the timeline slips.

10. Do you partner with any real estate brokerages or buy-before-you-sell programs?
    Some lenders have relationships with trade-in services or guaranteed sale programs that could expand your options.

Ready to Make Your Next Move?

If you're considering a move-up in Snohomish County, I’d love to help you run the numbers and explore your options. Whether you’re curious about a bridge loan, equity analysis, or buy-before-you-sell program, let’s craft a strategy that fits your goals and keeps the process smooth.

Let’s connect—even if you’re just starting to think about it. The earlier we start planning, the smoother your next chapter can be. We also have great lenders we can recommend. Reach out for a connection.