What To Do When Your Seller Wants To Buy a New Home First

By Josh Painter

Josh Painter is a coach, philanthropist, and the author of the book Best Version Ever.

In an ideal world, selling a client’s old home would line up perfectly with purchasing their new one. But in reality, real estate transactions don’t always go that smoothly. They might find their dream home before their current one sells—or worse, sell their home and have nowhere to go. So, can your clients buy a new home before selling their current one? The short answer is yes, but it requires careful planning. Let’s explore more options.

1. Sale contingencies and delayed closings. One option is adding a sale contingency to your client’s contract, meaning their new home purchase depends on selling their current home first. This protects your client from being stuck with two mortgages, but in a competitive market, sellers may prefer non-contingent offers. Another approach is negotiating a delayed closing, giving them extra time to sell while still securing a new home. As an agent, you can help structure this to their advantage.

2. Bridge loans and rent-back agreements. If your clients need financial flexibility, a bridge loan can cover the gap between buying and selling, allowing them to make a strong, non-contingent offer. Just keep in mind that bridge loans usually come with higher interest rates and shorter terms. Another strategy is a rent-back agreement, where they can sell their current home but stay in it temporarily, paying rent to the new owner while they finalize their next move.

3. Explore alternative solutions. If those options don’t work, there are other creative ways to make the transition smoother. Companies like Flyhomes, Orchard, and Knock offer programs that help people buy before they sell. You could also tell them to consider renting out their current home for passive income or selling to an iBuyer for a fast, cash transaction. However, inform them that convenience often comes at a lower sale price.

While buying before selling can be convenient, it’s not always the best financial move. Carrying two mortgages at once or relying on a quick home sale can be risky. That’s why you’re there to help them navigate the market and find the best approach for their situation.

If your clients are considering buying a new home before selling their current one, let’s talk. I’ll walk you through the options you can give them and help you make the best decision based on their unique situation. Call me at 951-265-3524 or send an email to josh@morethanjustarealestateagent.com. Let’s create a strategy that works!