Between Houses? How to Bridge the Gap
Where to Stay Between Selling Your House and Buying a New One
Few things in life are more stressful than moving—especially when selling one home while buying another. Between packing, preparing for showings, scrolling through listings, touring prospective homes, and managing what can feel like an endless to-do list, coordinating a sale and a purchase often becomes a delicate balancing act. Some homeowners are fortunate enough to time the sale of their home and the purchase of a new house perfectly so they can move directly from old to new. More often, though, the two closings will not align so conveniently. When there is a gap between them, one of the biggest questions becomes: Where will you live in the interim? Fortunately, there are options that can make this transition far less stressful than you might expect.
There are two possible paths you can take when moving from one home to another: buy your new home before selling your old one, or sell your home and then look for a new one. There are benefits and drawbacks to each route.
Buying First
If you choose to buy your new home first, you only have to worry about one move. You won’t have the stress of balancing two simultaneous transactions; and you can take your time with your home search and hold out for a house that you really love. However, this approach also comes with financial considerations. Much of your available cash will be tied up in your existing home’s equity, making it more difficult to fund a new down payment and closing costs. You will also have the temporary burden of paying two mortgages at once until you find your new home. You could apply for a home equity line of credit or a bridge loan to help with your new downpayment and closing costs, but these processes can be complicated, and not everyone will qualify.
Selling First
Selling before you buy means that you can apply the equity in your former home to finance your next purchase, but you will have to find somewhere to stay between closings. The most common options for temporary housing include rent-back agreements, extended stay hotels, and short term rentals.
Rent-back agreements
You may be able to negotiate a rent-back agreement with your home’s buyer. This allows you to remain in your home for an agreed-upon period of time after closing while paying rent to the new owner. It’s a convenient solution when both parties have flexible timelines, but it may not be available depending on the buyer’s needs.
Extended Stay Hotels
Another option is booking a hotel room for an extended stay. While hotels offer convenience and flexibility, nightly rates can add up quickly.
Short Term Rentals
We may be a little biased, but we believe furnished short- to mid- term rentals are the best solution for many homeowners between moves. Unlike a hotel room, furnished apartments give you room to spread out and settle in. They provide everything you need to be comfortable for however long you need to stay.
At Auberge, our furnished apartments are designed to make life’s transitions feel less like waiting in purgatory and more a comfortable and intentional stop along the way. We are here to help make your move as stress-free as possible.
If you are just beginning your moving journey and looking for an agent, we recommend reaching out to the Fresh Places Real Estate team. They can help guide you through every step of the sale and purchase process. If you’ve already begun but need additional help, here are a few more trusted resources:
David Frankel, SVP of Mortgage Lending at Guaranteed Rate
Phone: (267) 825-7857
Email: david.frankel@rate.com
Max Kelly, Risk and Strategy Officer at Mortgage Country
Email: max@mortgagecountry.com
Planning Ahead Makes All the Difference
Regardless of which path you choose, the key to a successful move is planning. Talk with your real estate agent early about your timeline and begin exploring temporary housing options before you need them. Having a backup plan can make the transition between homes much less stressful and allow you to focus on the excitement of your next chapter.
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