The simultaneous buy-sell

Yes — but the question isn't 'can you?' The question is 'should you?' And that depends on your financial position and your risk tolerance. **Three ways to do it:** **1. Contingent offer.** You make an offer on the new home contingent on selling your current home. The risk? Sellers hate contingencies in competitive markets. Your offer is weaker. In a hot neighborhood like Linden Hills, contingent offers get passed over. **2. Bridge loan.** Short-term financing that lets you buy before you sell. You borrow against your current home's equity to fund the down payment on the new one. When your current home sells, you pay off the bridge loan. The catch: Bridge loans carry higher interest rates and closing costs. You're essentially carrying two mortgages temporarily. In my experience, this works best if your current home is priced to sell quickly — not if you're going to 'test the market.' **3. Home equity line of credit (HELOC).** Open a HELOC on your current home before listing. Use it for the down payment. Pay it off when you sell. Lower rates than bridge loans, but you need enough equity and income to qualify. **The move I recommend most often:** Sell first, rent temporarily, buy without pressure. It's the least stressful path. But if you can't stomach a temporary move, the bridge loan approach works — with careful planning and honest numbers.

Perfect timing between selling and buying doesn't exist — but good timing is achievable if you plan it like a campaign, not a wish. **The ideal sequence:** 1. Get pre-approved for both transactions (you need to know what you can afford carrying zero, one, or both mortgages) 2. List your current home 3. Accept an offer with a 60-day closing 4. Start shopping for your new home immediately 5. Make an offer with a closing date that aligns (or negotiate a rent-back) **The rent-back strategy:** This is the secret weapon of the buy-sell combo. You sell your home, but negotiate to rent it back from the buyer for 30-60 days after closing. This gives you time to find and close on your new home without moving twice. Most buyers will agree to a rent-back if the rent covers their mortgage payment. It's a win-win: they start earning equity, you avoid a temporary move. **The timeline reality:** Most buy-sell combos take 90-120 days from list to move-in. The key is having your financing lined up before you start. The #1 cause of failed buy-sell combos? The buyer didn't get fully underwritten pre-approval first. Don't wing it. Plan it.

This is the fear that keeps every buy-sell client up at night. And it's a reasonable fear — if you don't have a backup plan. **Here's your three-step safety net:** **Plan A: Price it right from the start.** The #1 reason homes don't sell? They're priced too high. I price to create competition, which usually means pricing slightly below what the seller 'wants.' A home that's priced right sells in 2-3 weeks. One that's priced high sits for 2-3 months. **Plan B: Reduce price quickly if needed.** If we haven't had showings in 10 days, we adjust. No ego. No 'let's wait and see.' The market told us something, and we listen. **Plan C: Temporary housing bridge.** If your new home closes before your old one sells, you have options: - Short-term rental (extended stay hotel) - Storage unit for belongings - Negotiate a delayed possession on the new home - Bridge loan to carry both payments temporarily **The mistake I see most often:** Sellers list too high because they 'need' a certain number to make the buy work. The market doesn't care what you need. Price it right, sell it fast, move on with your life. In 25 years, I've never had a client who priced correctly fail to sell. The ones who struggled all had one thing in common: they priced based on what they wanted, not what the market said.

In most Twin Cities markets in 2026, I recommend selling first. Here's why. **When to sell first (recommended):** - You know exactly what you can afford after the sale - You're not desperate, so you negotiate better on the buy side - You avoid carrying two mortgages - You can use a rent-back to stay in your home while shopping **When to buy first (rare but valid):** - You found THE home and it won't wait - You have the financial cushion to carry both payments - Your current home is in a hot neighborhood and will sell quickly - Interest rates are about to drop and you want to lock in **The uncomfortable truth:** Buying first feels less stressful emotionally. You know where you're going before you leave where you are. But it's financially riskier. You're gambling that your current home sells quickly and at the price you expect. Selling first feels more stressful — you might need temporary housing. But financially, it's the safer play. You know your numbers. In 25 years, the clients who sold first had smoother transactions, less stress (overall), and better financial outcomes. The clients who bought first? Some did great. Others carried two mortgages for months they didn't expect.

A bridge loan is exactly what it sounds like — financing that bridges the gap between buying your new home and selling your old one. **How it works:** 1. You borrow against the equity in your current home 2. Use that money as the down payment on the new home 3. When your current home sells, you pay off the bridge loan **The numbers on a typical Twin Cities bridge loan:** - Loan amount: Usually up to 80% of your current home's equity - Interest rate: 1-2% higher than conventional mortgage rates - Term: Usually 6-12 months - Closing costs: 2-3% of the loan amount **Example:** You own a $400K home with a $200K mortgage. Your equity is $200K. A bridge loan might let you borrow $160K (80% of equity) to use as a down payment on your new home. **The risk:** If your current home doesn't sell within the bridge loan term, you're paying two mortgages plus the bridge loan payment. That's three housing payments. On a $400K home + $500K home scenario, that could be $7,000-8,000/month. **My rule:** Only use a bridge loan if your current home is listed, priced correctly, and showing well. Don't take a bridge loan and THEN list. That's backwards. The best lenders I work with offer bridge financing specifically designed for buy-sell combos. Ask me for the short list.

A rent-back is one of the most powerful tools in a buy-sell combo — and most people don't even know it exists. **What it is:** After you sell your home, you negotiate to stay in it as a tenant for a set period (usually 30-60 days). You pay rent to the new owner during that time. **When to use it as a seller:** - You need time to find and close on your new home - You want to avoid moving twice (to storage, then to new home) - You want to finish out the school year before you move - You need the proceeds from your sale to fund your purchase **What the rent should be:** Typically, it's the buyer's new mortgage payment (principal, interest, taxes, insurance) prorated to a monthly rate. So if their total payment is $2,800/month, you pay $2,800/month in rent. Fair for both sides. **The fine print:** - Most conventional lenders require the rent-back to be under 60 days. Longer than that, and the buyer's lender may classify it as an investment property instead of a primary residence. - Get it in writing as part of the purchase agreement, not as a side deal. - Include a security deposit and clear terms for damages. In buy-sell combos, the rent-back is often the difference between a smooth transition and a logistical nightmare. I use it on probably 70% of my simultaneous transactions.

Same-day closings are a high-wire act of real estate. They happen, they can work beautifully, and they can also be the most stressful day of your life if something goes sideways. **The ideal timeline for a same-day close:** 1. **Close on your sale in the morning** (9-10 AM) 2. **Close on your purchase in the afternoon** (2-3 PM) 3. **Movers arrive at your old home after the morning closing** 4. **Deliver to new home after afternoon closing confirms** **What can go wrong:** - Funding delays (the buyer's lender is slow) - Wire transfer issues (they happen more than you'd think) - Title issues discovered at the last minute - The seller of your new home hasn't moved out yet **My preparation checklist:** 1. **Pack everything before closing day.** You should be ready to move with 2 hours' notice. 2. **Book movers who are flexible.** Let them know the timeline is dependent on closings. 3. **Have a backup plan.** If closings don't align, where do you and your stuff go that night? 4. **Request morning funding on your sale.** This gives you the proceeds for your afternoon purchase. 5. **Get keys at closing, not after.** Some attorneys hold keys until funding confirms. Negotiate key release at signing. The best same-day closings I've done? They happened because we planned for everything that could go wrong — and then it all went right.

This isn't tax advice — I'm a Realtor, not a CPA. But here are the tax considerations I see come up most often in buy-sell combos. Talk to a tax professional for your specific situation. **Capital gains exclusion.** If you've lived in your current home for 2 of the last 5 years, you can exclude up to $250,000 in capital gains ($500,000 for married couples). This is the biggest tax break in residential real estate. **What counts as a capital improvement.** When calculating your cost basis (which reduces your taxable gain), you can include: - Major systems replacement (roof, HVAC, electrical) - Room additions - Landscaping that adds value (not just maintenance) - New windows or siding Keep receipts. All of them. For as long as you own the home. **Property tax reassessment.** Your new home will be assessed at the purchase price. In Minnesota, this means your property taxes could be higher than the previous owner's if the home's value has increased significantly. **Mortgage interest deduction.** If both transactions close in the same year, you may have deductible mortgage interest on both homes. This can be a significant deduction in year one. **Moving expenses.** Generally not deductible for most taxpayers since the 2017 tax changes. Military members are the exception. The move I recommend: Have a conversation with your CPA BEFORE you list your home. The timing of your sale (which tax year it closes in) can make a five-figure difference in your tax bill.