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Can You Put an Offer on a House Before Selling Your Current Home?
HomeLight
Real Estate
7 months ago
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Most Americans need the equity and sale proceeds from their current home in order to buy a new home. But you also want to start shopping for a home so you have a place to live when your house sells. Herein lies the buy-sell predicament: Can you put an offer on a house before selling your current home?

This common question plagues many homeowners who fear the timing and financial implications of such a decision.

In this blog post, we’ll explore the possibilities and strategies for making your next big move with confidence. We’ll break down the pros and cons of buying before selling and introduce some innovative solutions that can ease this transition.

Yes, You Can Buy Before You Sell. Why Move Twice?

Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.

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Can you put an offer on a house before selling?

The short answer is yes, you can put an offer on a house before selling your current home. This strategy is not uncommon in the real estate world, especially for homeowners who find their dream property before they’ve managed to sell their existing one. However, pursuing this path requires careful planning and consideration of your financial situation and your use of solution resources.

Success can depend on the state of the real estate market, the property you’re selling, your financial resources, and the flexibility of your buying and selling timelines

It’s important to evaluate your ability to carry two mortgages, should it come to that, or to explore financing options such as bridge loans, home equity lines of credit, or specific programs designed to help buyers in this exact situation. Read on for details about your “buy before you sell” options.

Is it better to buy or sell first?

The decision to buy a new house before selling your current one involves weighing various factors. Each option comes with its own set of advantages and disadvantages. Below are some of the key considerations that can help you make a choice that fits your financial situation, timeline, and personal preferences.

Benefits of buying a house before selling

  • You have a home to move to: Buying first means you can move into your new home at your own pace without worrying about the gap between selling your old home and finding a new place to live. This can be especially helpful if you’re making a long-distance move or moving an entire family.
  • You can save money: If you buy first, you avoid the path of: sell, move, rent, buy, and move again. You won’t need to move twice or pay temporary housing costs, including deposits and utility hookups.
  • You can gain a market advantage: In a competitive market, being ready to buy immediately can be a significant advantage, allowing you to secure your dream home without having to rush the sale of your current property.
  • You have time to prepare: Having both properties for a period allows you to make any necessary repairs or improvements to your current home, potentially increasing its market value.
  • You won’t be living in an “open house”: Buying first means you do not have to live in a house while it’s being shown to potential buyers.
  • You feel more certainty and peace of mind: Knowing where you’re moving to can provide emotional and logistical stability, especially important for families with children or individuals with specific needs.

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