Your Three Options
There are three ways to make the move. Which one fits depends on how much of your next down payment is tied up in your current home, how much monthly payment you can carry, and how competitive the homes you want are.
| Option | Sell First | Buy First | Contingent Offer |
|---|---|---|---|
| How It Works | Sell your home, then buy with your equity in hand. Rent back from your buyer if you need more time. | Buy the next home, then sell your current one. Fund the down payment with a bridge loan, home equity line or savings. | Make your offer on the next home conditional on selling and closing your current one. |
| Best When | You need your equity for the down payment, or want to know your exact budget before you shop. | You've found the right home and can comfortably carry two payments for a few months. | The market is balanced, as it is now, and your home is likely to sell quickly. |
| Watch Out For | Less time to shop, and possibly a short-term rental and two moves. | Two mortgage payments if your sale takes longer than planned, plus bridge financing costs. | Some sellers won't accept it, and you may have less room to negotiate on price. |
Whichever path you choose, many move-up buyers close both sides on the same day. The sale closes in the morning, and its proceeds fund the purchase that afternoon.
Option 1: Sell First
Selling first is the lowest-risk path. You know exactly what you have to spend, you never carry two mortgages, and you can make clean, non-contingent offers on your next home, which sellers prefer.
The challenge is timing. Once your home is under contract, you typically have 30 to 45 days until closing to find and get under contract on the next one. Two tools buy you more time:
- A rent-back. Colorado's standard Post-Closing Occupancy Agreement lets you stay in your home after closing for up to 60 days when your buyer plans to live there. You pay the buyer rent and a deposit, and your sale proceeds are already in your account while you shop.
- A longer closing. Asking for a 60-day closing instead of 30 gives you more time to shop. In today's market, many buyers are flexible on dates.
If neither is enough, a short-term furnished rental bridges the gap. It means moving twice, but some families find it worth the certainty.
Option 2: Buy First
Buying first lets you move once, on your schedule, and shop without a deadline. It's the right fit when you've found a home you don't want to lose, or when you have kids and want one clean move. The question is how to fund the down payment and carry both homes for a while.
Ways to Fund It
- Home equity line of credit (HELOC). Borrow against your current home's equity for the down payment, then pay it off when that home sells. Set it up before you list, because most lenders won't open a new line on a home that's already for sale.
- Bridge loan. A short-term loan secured by your current home, built for exactly this situation. Expect higher rates and fees than a standard mortgage, and a term of several months to a year.
- Buy-before-you-sell programs. Some companies back your offer with their cash or guarantee to buy your current home if it doesn't sell. They charge a fee, often a few percent of the price, so compare the cost against the convenience.
- Savings or investments. If you can cover the down payment without touching your home equity, buying first gets much simpler.
Qualifying for Two Payments
Your lender will usually count both mortgage payments when deciding how much you can borrow, until your current home is sold or under contract. Talk to a lender before you shop so you know whether you qualify to carry both.
Option 3: Make a Contingent Offer
A home sale contingency makes your purchase conditional on selling and closing your current home. If your home doesn't sell by the agreed deadline, you can cancel without losing your earnest money. The standard Colorado purchase contract includes this as an option.
A few years ago, contingent offers rarely won. Today, with more homes for sale than in any September since 2011 and buyers taking their time, many sellers will accept one, especially for a home that has been on the market a few weeks.
How to Make a Contingent Offer Stronger
- List your current home before you make the offer, or better, have it under contract already.
- Price your current home to sell quickly. The seller is betting on it.
- Keep the contingency deadline short and specific.
- Back it with a full lender pre-approval and solid earnest money.
“The families who do this well start with a plan, not a listing. Before your home goes live, we know your number, your lender's answer, and which of these three paths you're taking.”
Chris Nowakiwsky, Broker Associate
Move-Up Budget Calculator
See how much equity you'd take from your current home and what price range it supports for your next one. The starting values are examples. Change any of them.
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- Plus savings
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This shows what your down payment covers, not what you can borrow. A lender sets your loan amount from your income, debts and credit, so get pre-approved before you shop.
A Typical Sell-and-Buy Timeline
This is the sequence most of my move-up clients follow when they sell first and line up both closings.
- Talk to a Lender2 to 3 months outGet pre-approved for the next home, and learn whether you'd qualify to carry both payments. If you might buy first, open a HELOC now.
- Price and Prepare Your Home4 to 8 weeks outPricing analysis, pre-listing inspections, repairs and photos. This is when you choose which of the three paths you're taking.
- Start TouringWhile you prepareShop actively so you know the market and have a short list ready before your home goes live.
- List Your HomeWeek 0Price it to sell in the first few weeks. Every week it sits makes the rest of the plan harder.
- Go Under Contract on Your SaleTypically weeks 2 to 5Negotiate the closing date and a rent-back if you need one.
- Write on Your Next HomeRight awayWith your sale under contract, your offer is far stronger. Aim to close both on the same day or within the rent-back window.
- Close Both and Move Once30 to 60 days laterYour sale funds your purchase, and you move straight from one home to the next.
Sell and Buy FAQ
Is It Hard to Sell a House and Buy at the Same Time?
It takes planning, but it's very common. The hard part is timing: getting the money from your sale in time for your purchase without moving twice. Deciding up front whether you'll sell first, buy first or make a contingent offer, and talking to a lender before you list, solves most of the problems.
Should I Sell My House First or Buy First?
Sell first if you need your equity for the down payment or want certainty about your budget. Buy first if you've found the right home and can carry two payments for a few months, using a HELOC, bridge loan or savings for the down payment. In Denver's current balanced market, a contingent offer is also a realistic middle path.
Can I Buy a House Before Selling Mine in Colorado?
Yes. You can use a home equity line of credit opened before you list, a bridge loan, a buy-before-you-sell program, or savings for the down payment. You'll need to qualify with both mortgage payments counted unless your current home is sold or under contract. You can also make an offer that's contingent on selling your home.
What Is a Home Sale Contingency?
It's a condition in your purchase contract that lets you cancel without losing your earnest money if your current home doesn't sell and close by a set deadline. The standard Colorado contract includes it as an option. Sellers accept them more readily in a balanced market like today's, especially when your home is already listed or under contract.
What Is a Bridge Loan?
A bridge loan is a short-term loan secured by your current home that gives you cash for the down payment on your next one. It's paid off when your current home sells. Bridge loans usually carry higher rates and fees than regular mortgages and last several months to a year.
Can I Stay in My House After It Sells?
Yes, if your buyer agrees. Colorado's standard Post-Closing Occupancy Agreement lets you stay for up to 60 days after closing when the buyer will live in the home. You pay the buyer rent and a security deposit of no more than two months' rent.
What Happens If My House Sells Before I Find a New One?
You have options. Negotiate a rent-back of up to 60 days or a later closing date, rent short-term, or move in with family while you shop with cash in hand. Buying without a sale contingency also makes your offer more attractive to sellers.