Like the chicken and the egg, which comes first, buying or selling? Also, like the chicken and the egg, there isn’t a correct answer.
Buying before selling is appealing because it results in a move-in-ready house. But, buying first is only an option if you can make it work (obviously). There are a few ways to make it happen.
Be rich You’re swimming in money and can pay for a new house with cash. This includes closing costs and paying two mortgages until your house sells.
Make an offer with a contingency You can opt to make an offer that is contingent upon selling your home. This is only a possibility if there are no other offers on the house, or if your offer is higher than the others. If you make a high offer, the seller might decide it’s worth the risk of accepting it. But, remember that any contingencies weaken an offer.
Apply for a Home Equity Line of Credit (HELOC) Hopefully, the market is ripe and your current home’s value has increased significantly. If so, your bank will probably let you take out a home equity line of credit. This is a stash of money that you can dip into whenever you want, or need to. It’s backed by the equity in your home and is paid back with the proceeds from its sale.
Buying a new home before you’ve sold your “old” one can be a challenge, to put it mildly. However, if you can’t pass up the opportunity to own your dream house, buying now may well be worth the effort.