Buy Before You Sell

How to Buy a New Home Before Selling Your Current One

By Michelle Bailey – BKT Idaho, Powered by PLACE at Keller Williams Realty Boise

Selling your home and buying a new one at the same time can feel like a high-stakes balancing act. For many homeowners, the dream scenario is simple: buy your new home first, then sell your current one.

But how do you actually make that happen—especially when most of your cash is tied up in your current property?

Good news: you have options. In fact, there are three smart ways to tap into your home equity and make a smooth move without the financial juggling act.

Let’s dive into them.

1. Use a Home Equity Line of Credit (HELOC)

A HELOC is a second mortgage that lets you borrow against the equity in your current home—without having to sell it first.

Here’s how it works:

• You can typically borrow up to 85% of your home’s equity.

• It provides cash upfront to use as a down payment on your next property.

• After you’ve moved into the new home, you can sell your current one and use the proceeds to pay off the HELOC.

🔍 Pro Tip: Apply for a HELOC before you begin the mortgage process on your new home. HELOC approvals can take a bit longer than a standard loan.

2. Consider a Bridge Loan

A bridge loan is a short-term financing option that allows you to borrow against the combined equity of your current and future homes.

Key features:

• You can access up to 80% of the combined value of both properties.

• These loans are usually faster to process than HELOCs.

• They are ideal for sellers with excellent credit and high equity.

⚠️ Keep in mind: Bridge loans tend to have higher interest rates and stricter requirements, so they’re not right for everyone. But when they work, they work very well for qualified homeowners who need flexibility.

3. Negotiate Terms Into the Contract

While home sale contingencies are less common in competitive markets, they’re not off the table—especially in today's evolving landscape.

You can:

• Negotiate a sale contingency when submitting an offer on your new home.

• Ensure your current home is market-ready with photos and listing materials prepared in advance.

• Move quickly when the time comes, minimizing delays.

💡 Bottom line: This option works best when you and your agent are proactive and prepared to act fast.

What’s the Best Option for You?

The right strategy depends on your client’s equity, credit profile, timing, and overall financial situation. Whether it’s a HELOC, bridge loan, or contingency-based plan, there is a path forward—and you don’t have to navigate it alone.

📞 Have questions? Want help mapping out the next step?
Let’s talk! I’d love to help you or your clients make this transition as seamless and stress-free as possible.

—
Michelle Bailey
BKT Idaho | Powered by PLACE at Keller Williams Realty Boise