Move-Up Buyer Strategy

The hard part isn't buying the next house.
It's the timing.

Sell-and-buy is the most common move in real estate and the most underestimated. Four different financing paths (sale-contingent offer, sell-then-rent, HELOC for the down payment, bridge loan) each solve a different version of the timing problem. We compare them honestly so you don't get pushed into the one your lender prefers — you pick the one that fits your situation.

Map My Strategy

The Real Problem

You're competing
against cash buyers.

In any market tighter than balanced, a sale-contingent offer loses to a non-contingent offer. The seller doesn't want to wait on your inspection AND your buyer's inspection AND your buyer's appraisal AND your buyer's loan. They'll pick the offer that closes in 30 days every time, even at a slightly lower price.

So the question becomes: how do you write a non-contingent offer on the next house when your down payment is locked in the current one? Three answers (HELOC, bridge loan, or sell-then-rent) each trade money for certainty. The fourth (sale contingency) trades a weaker offer for not needing the others. We help you figure out which trade is worth making in your specific market.

Plan My Move-Up

The Four Strategies

Each one solves
a different timing problem.

In order from cheapest to most expensive — but the right one isn't necessarily the cheapest. It's the one that lets you actually win the next house.

Sell-and-buy with sale contingency

Make an offer on the next house contingent on selling your current one. Cheapest path because no additional financing is involved — but the offer is weak. In a buyer's market this works fine. In a seller's market, you'll lose to non-contingent offers most of the time. Best if your timeline is flexible and you're shopping in a balanced or buyer's market.
Sell first, rent, then buy

List and sell your current home, move into a short-term rental, then buy the next house with cash from the sale in hand. Financially cleanest — no contingencies, no bridge cost, full down payment available. Downside is two moves and a typical 2-6 month interim. Common when families are willing to trade the move-twice friction for negotiating power and certainty.
HELOC on current home for the down payment

Open a HELOC on your current home before listing it (timing matters — lenders won't issue one once the property is on the market). Draw the funds for the next house's down payment, close on the new home, then list and sell the old one. Sale proceeds pay off the HELOC at closing. Much cheaper than a bridge loan and avoids the double-move. Best when you have substantial equity and a clear path to selling within 3-6 months.
Bridge loan (short-term, expensive)

A bridge loan covers the gap between buying the new house and selling the old one — typically 6 to 12 months, usually 1.5-3 points above conventional rates plus origination fees. Use when a HELOC isn't fast enough, large enough, or available (the current home is already off the market or in escrow). Effective but expensive — confirm there isn't a cheaper path first.

The Decision

Match the strategy
to your situation.

If the market is
balanced or soft

A sale-contingent offer is fine.

No need to spend money on a HELOC or bridge if the next house will accept a contingent offer. Save the cost, accept that you're a slightly weaker buyer. We can model whether your area is currently in a market where this works.

If your family
can tolerate two
moves

Sell-then-rent-then-buy is cleanest.

No carrying costs, no bridge interest, no qualifying complexity. You become a cash-equivalent buyer with the sale proceeds in hand. The friction is two moves and the interim rental — typically 2-6 months. For families that can do this, it's usually the strongest financial position.

If you want
one move and
strong offers

HELOC on the current home for the down payment.

The sweet spot for most move-up buyers with substantial equity. Open the HELOC before listing. Draw to fund the next home. Close. Sell the old home. Pay off the HELOC. The interim has carrying costs but is usually short. Far cheaper than a bridge loan when the math works.

If HELOC
isn't available
or fast enough

Bridge loan is the fallback.

Bridge loans solve the same problem as a HELOC but cost more. Use them when the current home is already listed (HELOCs won't get issued at that point), when you need more than HELOC limits allow, or when speed is critical. Always quote both options before committing.

Frequently Asked

Move-up buyer questions
we hear most.

Can I make an offer on a new house before I sell my current one?

Yes — but the offer competitiveness depends on whether it's contingent on your sale. A sale-contingent offer is the weakest position in a hot market. Non-contingent offers backed by HELOC funds or a bridge loan compete on equal footing with cash buyers, at higher cost. We help you pick which trade-off fits your specific market.

Should I sell first or buy first?

Sell-first is the cleanest financially — you know exactly what you have to spend and you make the strongest offer on the next house. The downside is two moves (current home → rental → new home) and a stressful interim. Buy-first using HELOC or bridge funds avoids the double-move but adds carrying costs and qualifying complexity. The right answer depends on your equity position, your market, and your family's tolerance for transition.

What's a HELOC strategy for the down payment?

Open a HELOC on your current home before listing it. Draw the funds to use as the down payment on the next house. Close on the new home, list and sell the current one, then use the sale proceeds to pay off the HELOC. Common, well-understood, and significantly cheaper than a bridge loan when it works.

When does a bridge loan make sense?

Bridge loans are short-term (typically 6-12 months) and expensive (rates often 1.5-3 points above conventional, plus origination fees). They make sense when the equity in the current home is needed for the down payment AND a HELOC isn't fast enough or large enough to cover. Use them as a last resort, not a default.

How do you qualify with two mortgages at once?

Most lenders will count the current mortgage in your DTI ratio unless you have a signed lease for renting it out or your sale is already in escrow. If you can comfortably carry both payments based on income alone, qualifying is straightforward. If not, we look at lease-up programs, gift funds, or restructuring the down payment source.

One call. Four options.

The strategy before the offer.

Twenty minutes is enough to figure out which strategy fits — sale-contingent, sell-first, HELOC, or bridge. We'll model all four against your specific equity and timeline so you make the offer with confidence instead of guessing.

Book My Strategy Call

Free 30-minute strategy call. No hard credit pull on the initial call. No obligation. Just the math.

The hard part isn't buying the next house.It's the timing.

You're competingagainst cash buyers.

Each one solvesa different timing problem.

Sell-and-buy with sale contingency

Sell first, rent, then buy

HELOC on current home for the down payment

Bridge loan (short-term, expensive)

Match the strategyto your situation.

A sale-contingent offer is fine.

Sell-then-rent-then-buy is cleanest.

HELOC on the current home for the down payment.

Bridge loan is the fallback.

What can the next house cost?Run the affordability check first.

Move-up buyer questionswe hear most.

The strategy before the offer.

More on each piece.

HELOC Strategy

Purchase Loans

Affordability Calculator

The hard part isn't buying the next house.
It's the timing.

You're competing
against cash buyers.

Each one solves
a different timing problem.

Match the strategy
to your situation.

What can the next house cost?
Run the affordability check first.

Move-up buyer questions
we hear most.