Bridge loans, contingencies, HELOCs, and leaseback agreements: here's how Salt Lake City homeowners buy their next home without double mortgage payments.
You found the perfect home. It checks every single box. But now you’re asking yourself, how do I buy this without ending up with two mortgages or selling my home too soon and having nowhere to go?
If that’s your situation, you’re not alone. Over three-quarters of the families I work with are in the exact same scenario. They need to sell their current home before they can move into the next one. The good news is there are ways to handle this so you don’t end up double-paying or putting your family in a tough spot.
Why Right Now Works in Your Favor
One thing working for you right now is that inventory across the Wasatch Front is up roughly 10% compared to this time last year. That means more options, more homes to choose from, and a better chance of finding something that fits your lifestyle.
A lot of people say, “I’m just going to wait until prices change.” But here’s the truth: the market you sell in is the same market you buy in. If your home’s value goes up, so does the home you want. And in a stronger market, there are usually fewer homes available. Right now, having more inventory gives you more flexibility to find the right fit before that window narrows.
The Hardest Part
The hardest part isn’t just buying or selling. It’s doing both at the same time without things falling apart. Here are the main ways to handle that.
1. Contingency Strategy. This means you make an offer on a new home contingent on your current home selling first. It’s a straightforward way to protect yourself financially. The trade-off is that in a competitive market, sellers may hesitate because it adds uncertainty. If your home doesn’t sell, their deal falls through too. So while a contingency can work, it may not always be the strongest offer on the table.
2. Bridge Loans and Asset-Based Loans. A bridge loan or asset-based loan covers the gap between buying your next home and selling your current one. It gives you access to funds for your down payment so you can move forward now and sell later. Different lenders offer different programs and terms, so it’s worth shopping around to find one that fits your timeline and your numbers.
3. Tapping Your Existing Assets. You can also look at what you already have. Borrowing against your 401k, your stock portfolio, or the equity in your home through a home equity line of credit are all options worth exploring. The key detail on the 401k: the interest you pay typically goes right back into your own account. The goal with any of these is short-term flexibility, not long-term debt. It gives you the time to make a smart move instead of a rushed one.
4. Cash Offer Option. Some homeowners consider accepting a cash offer on their current home to speed up the process and create more certainty around their timeline. The trade-off is that you may not get the highest possible price. It comes down to what matters most: maximizing your sale price or having a clean, predictable closing that lines up with your next move.
5. Leaseback Option. This means you sell your home but stay in it for a period of time, renting it back from the new owner. It gives you breathing room to find your next home and move without pressure. We recently put this together for a seller in Holladay who stayed in their home for about three months after closing. It’s worth knowing that not every situation allows for this. Some buyers need to move in immediately, and certain loan programs, like conventional loans, require occupancy within 60 days. But when the timing aligns, a leaseback can make the whole transition much smoother.
Making It Work for You
At the end of the day, this isn’t just about buying or selling. It’s about having a plan. Whether you use a contingency, a bridge loan, tap into your assets, or sell first and negotiate a leaseback, the goal is the same: avoid double payments, keep your family comfortable, and get into the right home.
There’s no one-size-fits-all answer here. If you’re thinking about making a move and want to talk through your options, I’m happy to help. Reach out at (801) 285-0521, email Justin@JustinUdy.com, or visitwww.justinudy.com. Let’s figure out what works for you.
