5 Ways to Buy a Home Before Selling in Portland

By Troy Doty

Troy Doty is the founder of Northwest Realty Source and a leading real estate professional with over 25 years of experience in the industry.

One of the biggest questions I get from homeowners is this: What do we do if we find the next house before ours sells? It’s a real concern. You don’t want to end up stuck with two mortgage payments, but you also don’t want to sell first and then feel rushed into whatever happens to be available.

Buying before selling is absolutely possible when you have the right plan. Here are five strategies that can help you make the move without the stress.

1. The sale contingency strategy. This means your offer on the next home is contingent on your current home successfully selling. It’s the most conservative approach because it protects you from having to carry two homes at once.

In a competitive market, some sellers may push back on contingent offers, but there are ways to work around that, including delayed closings and negotiating extra time after mutual acceptance. The key is making your offer as strong as possible while still protecting your financial position.

2. Bridge financing or short-term lending. This is a great option if you need the strength of a non-contingent offer. A bridge loan allows you to access the equity in your current home before it officially sells, so that you can use that for the down payment on the next one.

Some buyers also use lines of credit backed by securities if they have investment accounts. This can be a powerful tool because it lets you compete like a cash buyer while your current property is still being prepared for the market.

3. Using existing equity through a HELOC or short-term 401(k) loan. A HELOC, or home equity line of credit, lets you tap into your current home’s value before listing. This can be one of the most flexible ways to fund a move-up purchase.

In some situations, a short-term 401(k) loan can also work well for closing costs or to cover a down payment gap. The right option depends on your timeline, your loan approval, and how quickly your current home is expected to sell.

4. Buy before you sell programs. There are lenders now that specialize in helping homeowners make this exact move. These programs aren’t right for every situation, and the fees need to be carefully reviewed, but for the right homeowner, they can completely remove the timing stress.

5. The rent-back agreement. This is one of my favorite options. You sell your current home first, unlock your equity, and then stay in the home temporarily after closing while you finalize the purchase of your next property.

This is a strong strategy because it gives you full buying power without the pressure of moving twice or finding temporary housing. It also lets you write a much stronger offer on the next home because your current property is already sold.

There isn’t one perfect strategy for everyone. The right move depends on your equity position, the price point you’re moving into, your financing options, and what’s happening in the Portland market in your specific neighborhood.

That’s why the first step is always building the timing plan before you start shopping.

If you’re thinking about making a move and want to understand how to buy before selling, reach out. I’d be happy to help you map out the numbers, the timing, and the best strategy for your situation. Call or text me at (503) 997-4169, email troy@nwrealtysource.com, or visit nwrealtysource.com.