The Ultimate Playbook for Buying and Selling a Home at the Same Time [6 Steps]

Figuring out how to sell and buy a home at the same time doesn’t need to be complicated. This is a common occurrence because most people have to sell their current home to afford their next home. Of course, relocating and other situations can add layers of stress when you’re trying to get the timing just right.

Several options can help make this a smooth process, from using financing options to considering alternate options, such as a short-term rental. We’ll help you understand the current real estate market and your options before you decide to sell so you’re prepared to make this transition.

Table of Contents

1. Step 1: Understand the current real estate market
2. Step 2: Consider financing options to buy before you sell
3. Step 3: Prepare your current home for sale
4. Step 4: Coordinate the sale and purchase
5. Step 5: Explore alternative solutions
6. Step 6: Be aware of legal and financial considerations

Step 1: Understand the current real estate market

Since you plan to buy and sell a house at the same time, you’ll benefit in at least one way, whether it’s a buyers’ market or a sellers’ market. Data from Zillow predicts that 2025 will lean toward a buyers’ market, especially in the Southwest portion of the United States. 

Zillow’s predictions about mortgage rates show rates could continue to fluctuate throughout the year. However, the National Association of Realtors (NAR) recently forecast that mortgage rates will stay around 6% in 2025, prompting more homebuying activity. NAR also believes home prices will increase by around 2% in 2025.

It’s important to prepare to list your home and buy a new one when the timing is right for you. Consult your real estate agent to get insight into the housing market in your specific area and a local lender to ask about the best time to apply for a mortgage in 2025.

Step 2: Consider financing options to buy before you sell

It’s possible to purchase a new home before selling your current home. Financing options are available for those who need financial help to pay for two mortgages at once. 

Bridge loan

You may qualify for a bridge loan if you have a steady job and excellent credit and own a home you have significant equity in. Bridge loans provide short-term financing to help you when you’re transitioning into a new home and haven’t sold your old home yet. One benefit of a bridge loan is you might be able to go a few months without making a payment.

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HELOC vs. Bridge Loan

“Buy before you sell” program

Some real estate services, such as Homeward, offer “buy before you sell” programs. With this program, Homeward makes an all-cash offer on the home you want, which helps in a competitive marketplace. Then, once your current home sells, you use the funds to purchase your next home back from Homeward.

Home equity loan or HELOC

Leveraging your current home’s equity with a home equity loan or HELOC can be a smart way to access cash for purchasing your next home. These options often come with lower interest rates compared to other financing methods. For example, the average home equity loan rate in the U.S. is 8.4% as of December 2024, according to the Wall Street Journal.

If you’re considering a HELOC, Figure is an excellent choice. It offers fast funding, competitive fixed rates, and a 100% online application process, making it ideal for homeowners looking for convenience and reliability. Check out our reviews of the best HELOCs for more about Figure and other options.

For a home equity loan, LendingTree is a standout option. As the best marketplace for home equity loans, it allows you to compare offers from multiple lenders to find the best rate and terms for your needs. View our list of the best home equity loans to see our highest-rated lenders.

Once you sell your home, you can use the proceeds to pay back the HELOC or home equity loan, effectively leveraging the value of your current home to secure your next property.

Read More

What Can You Use a HELOC For? Best and Worst Strategies

Step 3: Prepare your current home for sale

When it comes to preparing your current home for sale, a little bit of work can make a major impact. The most important step is to declutter and depersonalize your home. Remove large pieces of furniture, donate excess clothing and home decor, and put the kid toys in storage. You want a potential buyer to walk into your home and see its best features.

If you need support, a personal organizer or a staging company can help ensure your home is ready for showings. Recent data from the National Association of REALTORS Research Group showed that 81% of buyer’s agents said staging made it easier for their clients to visualize themselves in a home.

This is also a good time to complete small maintenance tasks and spruce up your landscaping. An experienced real estate agent can guide you through this process and tell you the most impactful updates you can make. They can also ensure your home is priced well for a fast sale.

Step 4: Coordinate the sale and purchase

It can be challenging to coordinate buying and selling houses. In a perfect scenario, you could close on one home and purchase another on the same day, but that doesn’t always happen. 

Sometimes, when you’re making an offer on a home, you can ask for flexible closing dates or add a contingency clause that states you’ll buy the home once yours sells. The sellers can choose whether to accept your offer; however, if they have offers with no contingencies, those might be more attractive.  

Some lenders might approve buyers owning two houses at once. If you qualify, you won’t need to sell your current home before purchasing a new one. However, you would then carry two mortgages at once, which can be a financial strain. We’ll discuss several alternative solutions to that scenario below.

The most important part of this process is preparing in advance. Spending time on the front end to understand the timing of everything and the options available can make a huge difference in how smoothly things go. This includes:

• Determining what, if any, financial restrictions or limitations you may have related to purchasing a new home while you are finalizing the sale of your current home.
• Speaking to your lender to determine how it views your scenario. 
• Being prepared to financially float the down payment on your new home or even temporarily make payments while the sale of your current home is being finalized so you don’t damage your financial situation.

Rand Millwood, CFP®

Step 5: Explore alternative solutions

Despite your best planning, it might be hard to align your buying and selling timelines. If you are in a situation where you have a few days (or more) in between closing dates, you can ask for a rent-back agreement. In this agreement, you ask to rent back your home from your buyers until you can close on your new house.

If a rent-back agreement is not possible, you might need to take on the additional cost of a short-term rental, such as an Airbnb or an extended-stay hotel room, until it’s time to close on your new house. Another option is to stay with close friends or family for a short time if they live nearby.

Step 6: Be aware of legal and financial considerations

If you want to buy and sell a home at the same time, it’s important to have a team of professionals to help you navigate decisions. An experienced real estate agent, a mortgage lender, and a real estate lawyer are all people you can consult about your house sales price, contract terms, options for contingency clauses, and financing options.

It’s also important to save and prepare your finances ahead of time if you know you want to make a transition from one house to another. Make a list of all costs associated with buying a new house, including closing costs, moving costs, staging fees, and more so you can prepare. Keep more money liquid in a savings account than you think you’ll need. 

Even if all goes well, closing dates may change due to factors outside of your control. That might leave you in a situation where you need to pay for short-term housing. For that reason, the more financial planning you can do and the more support you have from experienced professionals, the smoother your transition to your new home will be.