If you already own a home, buying your next one gets complicated — especially in a market where everyone's talking about "golden handcuffs." Here's how to buy before you sell.
The golden handcuffs problem
During the pandemic, millions of homeowners locked in rock-bottom mortgage rates. Giving that up to move means taking on a higher rate today — so many stay put. But as the market normalizes, more owners are realizing: if you need the right home, the right bedrooms, the right area, it may mean accepting a new rate and leveraging the equity you've built.
Why contingent offers can hurt you
The standard path is a contingent offer — buying your next home contingent on selling your current one. It's normal, but it's risky for sellers. Sellers want the fastest path to cash, and a buyer depending on someone else buying their house isn't that.
Worse, in Washington, a contingent offer can get "bumped." If another buyer comes along, you get a bump notice: you have 5, 7, or 10 days to get your home sold — or you lose the dream home.
Strategies to buy before you sell
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Bridge financing — access the equity in your current home to fund the down payment or purchase of the next one, without waiting to sell.
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Guaranteed backup contracts — companies provide a contract to buy your home, which lenders can treat as a "sold" property. You qualify for your new loan without the contingency.
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Cross-collateralization — combine both properties under one loan, move into the new home, and refinance later once the previous property sells.
The takeaway
These creative tools make you more competitive, but they come with costs. A standard contingent offer is still a valid path — the key is understanding all your options so you can make an informed call.
Ready to map your move? Connect at applywithrj.com or call (360) 739-3454.
The Bennett Team, Powered by Canopy Mortgage · (360) 739-3454 · NMLS# 1587912. Equal Housing Opportunity.
