Buying A House Pending Sale Of Current House

October 3, 2023


Buying a new house while waiting for the sale of your current house can be a complex process. It requires careful planning, financial strategies, and a smooth transition between the two properties. In this article, we will discuss important factors to consider before making a purchase, the process of buying a house before selling, financial strategies to ensure a smooth transition, and helpful tips for a successful move.

Factors to Consider Before Buying a House Pending Sale

Before jumping into purchasing a new house while waiting for the sale of your current one, there are several factors you should consider. First and foremost, evaluate the current real estate market conditions. Is it a seller’s market, where houses are selling quickly, or a buyer’s market, where there is more inventory and prices are more competitive? Understanding the market will help you determine the likelihood of selling your current house in a timely manner.

Additionally, it is crucial to assess your financial situation. Do you have enough savings or equity to cover the down payment and closing costs for a new home without relying on the proceeds from the sale of your current house? It is advisable to have a contingency plan in place in case your current house takes longer to sell than anticipated. Lastly, consider the potential stress and logistical challenges that come with managing two properties simultaneously. It is important to evaluate whether you have the time, resources, and support to handle the responsibilities and financial obligations associated with owning two homes.

Understanding the Process of Buying a House before Selling

When buying a house before selling your current one, it is essential to understand the process involved. First, it is recommended to work with a real estate agent who has experience in these types of transactions. They can help you navigate the complexities and ensure a smooth transition.

One common approach is the "home sale contingency," where you make an offer on a new house that is contingent upon the sale of your current house. This allows you to secure the new property while giving you time to sell your current house. However, it is important to negotiate the terms and conditions carefully, including a realistic timeline for selling your current house. Another option is obtaining a bridging loan, which provides temporary financing to bridge the gap between purchasing a new house and selling your current one. This can help cover the down payment and other expenses until your current house is sold.

Financial Strategies for Purchasing a New Home Pending Sale

To ensure a smooth transition between houses, it is crucial to have an effective financial strategy in place. One option is to use a home equity line of credit (HELOC) or a bridge loan. These types of loans allow you to tap into the equity of your current house to finance the purchase of a new home. However, it is important to carefully consider the interest rates, terms, and fees associated with these types of loans.

Another approach is to explore rent-back agreements or leaseback options. In this arrangement, the buyer of your current house allows you to remain in the property as a renter for a specific period after the sale is completed. This can provide you with additional time to find and purchase a new house while avoiding the stress of moving twice within a short timeframe. However, it is essential to negotiate the terms and rental rates upfront to ensure a fair agreement for both parties.


Buying a house pending the sale of your current house can be a complex endeavor. By considering various factors, understanding the process, and implementing effective financial strategies, you can navigate this transitional period with confidence. Remember to seek professional guidance from real estate agents and financial advisors to make informed decisions. With careful planning and preparation, you can successfully purchase a new house while ensuring a smooth transition between properties.