I Can’t Buy a House Until I Sell My Current Home. How Does That Work?

First of all, just breathe! This is one of the most common situations homeowners face. You need the equity from your current home to buy the next one, but you can’t own two houses at the same time. The good news is this scenario is normal, manageable, and built into how real estate transactions work.

Here’s how the process typically works.

Step 1: Prepare and List your current home first
Before shopping seriously, your home should be ready to list. That includes pricing it correctly, handling repairs, decluttering, and understanding your estimated net proceeds. Those numbers matter because they affect your down payment and loan approval for the next home. When clients approach me with this, I actually prepare a Net Sheet that will give them a good idea of how much money they can use towards the purchase of a new home.

Step 2: Get pre-approved with the right context
Your lender will structure your pre-approval assuming your current home sells. They’ll review your equity, expected sale price, and payoff amount. This prevents you from shopping beyond what the numbers actually support. You'll still need cash to make a down payment, but everything else can be tied to that home sale.

Sometimes there are cases where you need to move before selling your current home. This is possible too with what is called a bridge loan. It's a slightly different process, but have the peace of mind knowing you have options.

Step 3: Start house hunting strategically
Once your home is on the market, you can confidently make offers. Timing matters. In many cases, sellers prefer buyers whose homes are already under contract, not just listed. There are basically stages to your buying power, broken down like this:

Not Listed < Home Listed < Home Under Contract < Home Sale Finalized

This is where a Home Sale Contingency comes in.

What is a Home Sale Contingency?
A home sale contingency is a clause in your purchase contract stating that your offer depends on successfully selling your current home. If your home does not sell by a specified deadline (usually 3-6 months), you can cancel the contract without losing your earnest money.

How it benefits buyers:
• Protects you from owning two homes
• Prevents financial strain or rushed decisions
• Allows you to make an offer before your sale fully closes
• Gives clarity and legal protection around timing

In competitive markets, contingencies can be less attractive to sellers. That’s why proper pricing, strong marketing, and realistic timelines are critical.

Step 4: Coordinate both closings
Ideally, your sale closes first on one day prior to the day of your purchase. This allows your equity to roll directly into the new home with minimal disruption. Closings involve a lot of paperwork and take time, so planning two closings should be a multi-day affair. Simultaneous or same day closings are difficult to schedule and usually you'll need a day for moving, but I've seen them happen before.

Bottom Line:
Buying while selling is common and workable with the right planning. A home sale contingency gives you protection, flexibility, and peace of mind while your transition is in motion.

If you’re thinking about selling and buying at the same time, visit NextHomeEric.com. I’ll help you map out the timing, pricing, and contingency strategy so the move feels intentional, not stressful.