Buying and selling at once
How can I buy a home in Los Angeles before selling my current one?
Short answer
You can make an offer contingent on selling your current home, use short-term financing such as a bridge loan or home equity line to buy first, or sell first and negotiate a rent-back so you can stay while you buy. Each option trades cost, risk and negotiating strength differently, and both transactions need to be planned together.
From Ken's experience
As a former loan officer, I can guide you through this process from start to finish. There are numerous programs that I have access to that accomplish the buy before you sell process. It’s just a matter of determining which one is the right fit for the specific scenario you’re looking to accomplish. When looking at what we call “bridge” options, it’s important that everything aligns perfectly. If you’re financing your purchase, for instance, everything has to be structured so that it still fits your mortgage lender’s appetite for lending. That way we make sure that costly mistakes are not made. Beginning with the end result in mind while discussing and planning out the entire way to accomplish the goal is the key to success.
Ken Sisson, Studio City and Sherman Oaks real estate broker
The main approaches
- Sale-contingent offer. Lowest financial risk, but sellers often prefer offers without this condition.
- Buy first with interim financing. A bridge loan or home equity line can fund the purchase before your sale closes. You carry two homes for a period.
- Sell first with a rent-back. You know your proceeds before buying and stay in the home for an agreed period after closing.
Coordinating both sides
The purchase and the sale affect each other’s timing, price and terms. It helps to have one plan that covers both, with clear roles for whoever represents you as a buyer and as a seller.
Questions to settle early
- How much can you borrow with and without the proceeds of your sale?
- How long can you afford to carry two properties?
- How much time do you need in your current home after it sells?
Who can help with this decision
Ken Sisson
Potential fit for both sides of a coordinated moveThis question involves both a purchase and a sale. Each side needs representation, and the timing has to be planned together.
Why Ken for this situation
- Writes UpListed's buyer-side analysis for Studio City and Sherman Oaks, including how to evaluate reduced-price homes
- Listing preparation and pricing commentary in The Real Read on kensisson.com
“We literally just got the keys to our new home and I am more than happy to fully recommend Ken as a realtor. We are first time home buyers and he made this process easy every step of the way, always making sure we knew what was happening…”
Covers Studio City, Sherman Oaks, Los Angeles · Real Estate Broker, DRE 01292247 · Ken Sisson provides real estate services through Christie's International Real Estate Southern California
Disclosure: Ken Sisson is UpListed's founding contributor. Recommendations are not paid placements.
Sources
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About this answer
- Author and reviewer
- Ken Sisson, Real Estate Broker, DRE 01292247
- Original expertise
- Ken Sisson
- Also asked as
- Can I buy a new house before I sell mine?
How does a rent-back work when selling a home? - Scope
- Los Angeles, CA. General information, not legal, tax or lending advice.
- First published
- Last reviewed