BIC TIP #1145: Buy Before You Sell? Yes, You Can.
Every agent has met this buyer, and Stephen Long has been there too. They are not actively looking. They are sitting in their house, a property pops up, and suddenly they are saying, oh my gosh, I want to buy it. But they have done nothing to prepare, their current home is not ready for the market, and they do not think they can make an offer. The good news? There is a loan for that.
The Accidental Buyer Problem
The classic dilemma is simple. The homeowner needs the equity from their current home to buy the next one, but the next one will not wait for them to fix up, list, and sell. Without a plan, they either miss out on the house or scramble into a stressful timeline that may not work.
That is a lost opportunity for the buyer and for you.
Buy As If You Already Sold
Stephen explains that there is a loan product designed for this exact situation. It allows the buyer to go ahead and make an offer on the new house as if they have already sold their current home.
On the mortgage loan, it looks like the departing home has been sold. That existing debt does not count against them for the new mortgage. The buyer can then use a bridge loan to tap the equity in their current home and put that toward the new home. From there, Stephen says they get 12 months to sell the departing home.
A Transition, Not a Scramble
This creates a true transitional opportunity. The buyer takes down the new home while liquidating the old one on a sensible timeline. They can prepare the departing home properly, list it when it is ready, and avoid moving twice.
As with any loan product, qualification requirements apply, so the buyer should talk with a lender who offers this option and can walk them through the details.
The Practical Takeaway
Homeowners who find a house before they are ready to sell are not out of luck. A bridge-style loan can let them buy first, use the equity in their current home, and take time to sell the departing property. Keep this option in your back pocket. It can help you find new buyers and help those buyers find new homes, a win-win for everyone.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.
Mortgage topics are discussed for general education only and are not a commitment to lend or an offer of credit. Stephen Long, NMLS #2795861, Keller Home Loans, a division of Mutual of Omaha Mortgage, Inc., NMLS ID 1025894. Equal Housing Opportunity.
