buybuy before you sellplain-english options
Buy before you sell
For most move-up buyers, the down payment is tied up in the home they live in. Here are the ways to bridge the gap, what each one costs in money and risk, and a calculator for the months you might own two homes.
four ways
Four ways to bridge the gap
Each option trades money, risk and time differently. The right one depends on your equity, your income and how competitive your next neighborhood is.
financingBridge loan
Borrow against the home you have
A short-term loan secured by your current home funds the down payment on the next one, and the sale of the old home pays it off.
- Good for: writing an offer that doesn’t depend on selling first
- Watch for: two housing payments until the old home closes, plus the loan’s fees
- Ask your lender: rate, fees, term, whether payments are monthly or due at payoff, and how both homes count toward your debt-to-income
financingHome equity line
Draw the down payment from a credit line
A home equity line of credit on your current home lets you draw what you need for the down payment and repay it when the home sells.
- Good for: owners with plenty of equity who plan ahead
- Watch for: a variable rate, and a line that has to be in place before you need it
- Ask your lender: whether they’ll open or keep a line on a home you plan to list
offer termsSale contingency
Make the purchase depend on your sale
Your offer includes a condition that you sell your current home first, so you never carry two.
- Good for: slower segments of the market and patient sellers
- Watch for: in a competitive market, an offer that depends on another sale usually ranks below one that doesn’t
- Ask us: how sellers in your target area are treating these offers right now
timingSell first, rent back
Sell first and stay a little longer
Sell your current home first and negotiate a rent-back so you can stay after closing while you buy.
- Good for: knowing your exact proceeds before you shop
- Watch for: a firm move-out date while you search; rent-back terms are negotiated and written on a separate addendum
- Ask us: how long a rent-back buyers in your area are agreeing to
overlap calculator
What the overlap costs
If you buy first, you’ll pay for two homes until the old one closes. Put in your numbers to see the monthly and total cost of the overlap.
cost of owning both
Add the bridge loan’s fees from your lender’s quote. Pricing and preparing the current home before you buy keeps the overlap short.
sell it well
Make the current home sell on your schedule
The shorter the gap between closings, the less any of these options costs.
- Price it from the sales that matchA value range from the sales most like your home, and a net sheet that shows what you’d have for the next one.
- Compass ConciergePays up front for staging, painting, repairs and more, repaid at closing. Loans come from Notable Finance, LLC, and fees or interest may apply depending on the state.
- Test the price before you commitCompass pre-marketing (a Private Exclusive or Coming Soon) can show buyer interest before the home is on the MLS. It’s optional, and Compass requires a signed seller disclosure first.
- Proposition 19, if you’re 55 or olderEligible owners can carry their property tax base to a replacement home bought within 2 years of the sale, before or after it.
- The home sale exclusionIf you owned and lived in the home 2 of the last 5 years, up to $250,000 of gain ($500,000 married filing jointly) can be excluded from federal tax.
the plan
Plan it in five steps
- step01
Know what your home will net
Everything starts with the cash your current home will free up.
- A comparative market analysis from the sales most like your home
- A seller net sheet: price minus commission, transfer tax, escrow and title, prep and your loan payoff
- The equity you could borrow against before the sale, from your lender
property nerd tipRun the seller net sheet at a conservative price; the overlap math should work even if the sale comes in lower. - step02
Line up financing before you shop
Get a pre-approval that counts both homes, and compare a bridge loan with a home equity line side by side.
- Ask each lender how they treat the current home’s payment in your debt-to-income
- Compare rates, fees, terms and when payments are due
- Check how the payoff works at closing on the old home
property nerd tipGet quotes from more than one lender; terms on short-term loans vary widely. - step03
Get the current home ready
Prep and paperwork before you buy shorten the time you carry two homes.
- Schedule repairs and staging, with Compass Concierge if it fits
- Start the seller disclosures early
- Decide whether to pre-market with Compass or go straight to the MLS
property nerd tipBook prep work before you set a launch date; vendor availability sets the timeline. - step04
Shop and write
With financing in place, decide whether your offer depends on the sale or not.
- A non-contingent offer competes better but means carrying both homes
- A sale contingency protects you from two payments but can lose to cleaner offers
- Line up the close dates so the old home sells soon after the new one closes
property nerd tipUse the contract clock to map every deadline on both transactions. - step05
Sell and settle up
When the old home closes, escrow pays off its mortgage and any bridge loan or home equity line from the proceeds.
- Check the payoff statements for every loan secured by the old home
- Property taxes and HOA dues are prorated at each closing
- Expect a supplemental property tax bill on the new home months later
property nerd tipSet aside cash for the supplemental bill; the property tax calculator estimates it.
questions
Questions we hear
Is a bridge loan a Compass program?
No. Bridge loans and home equity lines come from lenders, not from Compass or the Boyenga Team, and Compass is not a lender. Terms vary, so get quotes and compare; we’ll help you line up the timing.
How much does it cost to own two homes?
It depends on both payments, the bridge loan’s rate and fees, and how long the overlap lasts. The overlap calculator above shows the monthly and total cost for your numbers.
Can I buy first and keep my property tax base?
If you’re 55 or older and eligible, Proposition 19 lets you carry your tax base to a replacement home bought within 2 years of the sale, before or after it. The replacement’s value limit depends on the order and timing; our Prop 19 guide walks through it.
What is a rent-back?
An agreement that lets the seller stay in the home for a set time after closing, usually with rent or a deposit, documented on a separate addendum.
more to learn
Keep going
- Buyer playbookSeven steps to a purchase, with a contract clock.
- Seller playbookSeven steps to a sale, with a disclosure builder.
- Real estate calculatorsPayment, affordability, seller net and rent vs buy.
- Compass + Boyenga toolkitConcierge, pre-marketing and pricing tools.
- Proposition 19Keeping your tax base when you move.
- Market PulseHow fast homes are selling in each city right now.
General information, not lending, tax or legal advice. Bridge loans and home equity lines come from lenders, and terms vary; Compass is not a lender. Checked October 15, 2026.
talk to a property nerd
Planning a move-up?
We’ll map the order of the sale and the purchase with you and your lender, and show you the numbers both ways. Commissions are negotiable, and we offer bundled services, so ask us what’s included.
Planning a move-up? Send us a note.
