If you need the money from your current home to buy the next one, sell first, and use a rent-back or a short-term rental to cover the gap. If you can comfortably carry both homes for a while, buying first makes for an easier move, using a home-sale contingency, a bridge loan or a HELOC. The third option is to close both on the same day, which saves a move but leaves little room for delays.
I'm Wes Johnston, a Realtor with Trueblood Real Estate in Fishers. I'm not a lender or a lawyer. The financing options below are things to ask a lender about, and the contract terms are set by your purchase agreement.
Here's the thing: there's no single right order. The right answer comes from three questions. Do you need the equity from this house for the next down payment? Can you qualify for the new loan while you still own the old home? And how much disruption, like a second move or a few months of two payments, can you live with?
You know exactly how much money you have for the next house. You can make offers without a home-sale contingency, which makes your offer stronger to a seller. And you never carry two housing payments at once.
You may have to move twice, into a rental or temporary place and then into the new home. You're house hunting on a deadline, which can push you to settle. And temporary housing and storage cost money.
A rent-back (also called a lease-back or post-closing occupancy) lets you sell and close, then stay in the house as the buyer's tenant for an agreed period while you finish buying your next home. It avoids a second move and gives you your sale money before you buy.
It has to be in writing, as part of the purchase agreement or a separate occupancy agreement: how long, what you'll pay, any deposit, who covers utilities, the condition the house has to be in when you leave, and what happens if you need more time. The buyer's lender may limit how long you can stay, since an owner-occupied loan generally expects the buyer to move in, so ask early.
A short-term or month-to-month rental, furnished or not, plus storage can bridge the gap. It costs more in hassle, but it doesn't depend on the buyer agreeing to anything.
One move. Time to find the right house instead of whatever's available on your deadline. And once you've moved out, your old home can be cleaned, touched up and shown empty, which makes showings easy.
You may carry two housing payments until the old home sells. You have to qualify for the new loan while you still own the old one, and your lender decides whether you can. And if the old house sits, the pressure to take a lower offer builds.
It's a condition in your offer that says you'll only buy if your current home sells (or closes) by a set date. If it doesn't, you can cancel under the terms in the contract.
It protects you, which is exactly why some sellers don't like it: their sale now depends on yours. When a seller has other interest, an offer without the contingency usually looks stronger. Some sellers will accept one only if they can keep showing the house and ask you to remove the contingency or step aside if another offer comes in. Your offer will be stronger if your house is already listed, or better yet under contract, when you write it.
Possibly. A bridge loan is a short-term loan against your current home that you pay off when it sells. A HELOC (home equity line of credit) lets you draw on the equity in your current home, often for the down payment on the next one, and pay it back from the sale.
Both mean borrowing against a house you're about to sell, and both come with costs, terms and qualification rules that vary by lender. Ask a lender to compare them for your situation, including whether you'd qualify carrying both homes and how the timing works if you plan to list soon. I don't quote rates; the lender is the right source.
Yes. Both purchase agreements are written with the same closing date, the sale usually closes first, and the money from it goes toward the purchase. You move once and never carry two homes.
The risk is that the two deals are chained together. If your buyer's loan or appraisal runs late, your purchase can slip too. It takes close coordination between both lenders and title companies, and it's smart to build in a cushion, like a short rent-back on the home you're selling, in case one side runs late.
If you need the proceeds for your next down payment, or your lender says you can't carry both homes, sell first and negotiate a rent-back. That's the lower-risk path for most people in that spot.
If you can comfortably carry both, buying first is the easier move, especially if you want to be picky about the next house. Either way, talk to a lender before you list, not after. Your numbers decide this, not a rule of thumb. If you want to know how long your sale might take, start with how long it takes to sell a house in the Indianapolis area.
More seller questions, answered: how long it takes to sell a house here, how to choose a listing agent, and what affects your home's value. If you're buying, my buyer page and Indiana closing costs guide cover that side. Also answered: what it costs to sell, how to price your home, what to fix before selling, and selling on your own or with an agent.
Tell me where you are now, where you're headed, and when. I'll help you work out which order makes sense, and I'll bring in a lender early so you know what you can carry before you commit to anything.
I'm not a lender or an attorney, and I'll tell you when a question belongs with one.
Fishers-based. One plan for both sides of the move. Committed to your success.
Tell me your timing on both homes. I'll lay out the options that fit.
Send a MessageYour equity decides a lot of this. Start with an instant estimate, then let's check it against recent sales.
Tell me about the home you have, what you're looking for next, and your timing. I'll get back to you with the options that fit.
Financing questions go to a lender; I'll help you find one if you need it.
This page is general information, not financial or legal advice. Loan products, rates and qualification rules vary by lender; ask a lender about your situation. Contract terms are set by your purchase agreement.