Worried about finding your next home in Columbus before your current one sells? You are not alone. Many move-up buyers want more space, a new neighborhood, or a shorter commute without juggling temporary housing. In this guide, you will learn how buy-before-you-sell works, your financing options, smart timing strategies, and what to consider in Franklin County. Let’s dive in.
Buy-before-you-sell, defined
Buying before you sell means you purchase your next home while you still own your current home. You might carry both mortgages for a short period or coordinate a same-day closing. Many buyers choose this path to avoid rushing, compete without a sale contingency, and move only once.
This strategy offers real benefits, but it also requires a clear plan. Lenders will look closely at your ability to carry both payments and reserves. Your goal is to secure the right home while managing cost and timing risk.
Benefits and risks to weigh
Key benefits
- More buying power and choice without a sale contingency.
- Time to prep, stage, and market your current home for top dollar.
- Smoother move with less disruption for your family and schedule.
Key risks
- Carrying two mortgages increases monthly costs and stress.
- Extra transaction costs, including two sets of closing and holding costs.
- Interest-rate risk on short-term options if you refinance later.
- If your current home sells slower or for less, exposure increases.
Financing options in Columbus
Bridge loan
A bridge loan is a short-term loan, typically 6 to 12 months, that uses your current home’s equity to fund the next down payment. It can be fast and sometimes interest-only during the term. Rates and fees are usually higher than a standard mortgage, and you need an exit plan such as selling your home or refinancing when it sells.
HELOC or home equity loan
You can tap your equity for the down payment using a HELOC or home equity loan. HELOCs are often variable-rate and use your home as collateral, so understand the risks and repayment terms. To learn how HELOCs work, review the CFPB’s HELOC guide. Lenders will consider your combined loan-to-value and may require payoff when you sell or refinance.
Carry two mortgages temporarily
If you qualify, you can take a new mortgage while keeping the old one until it sells. This path is simple and avoids bridge fees but requires you to show income and reserves to cover both payments. Lenders include both payments in your debt-to-income ratio during underwriting.
Cash-out refinance
A cash-out refinance on your current home can provide funds for your next down payment. It may change your monthly payment and restart the loan term, and it comes with closing costs. Lenders use loan-to-value limits and require an appraisal and seasoning.
Piggyback or second mortgage
A piggyback approach pairs a first mortgage with a second mortgage to reduce the upfront cash needed, or you could take a second mortgage on your current home to fund the new down payment. Expect similar tradeoffs to HELOCs with added complexity of managing two liens.
iBuyer or instant-sale programs
Some companies buy your home quickly for a fee so you can buy your next home with cash or a larger down payment. These programs offer speed and certainty, though net proceeds can be lower than a traditional listing. Compare fees and contracts carefully, and check current availability in the Columbus market.
Home trade-in or guaranteed-sale programs
Certain programs will purchase your current home or offer a guaranteed solution so you can make a stronger offer on the new home. Read the fine print and compare the total costs with a standard listing.
Timeline strategies that work
Sale contingency in your offer
You can make your purchase contingent on selling your current home by a set date. This protects you from double payments, but it is less competitive in faster submarkets. Your agent can shape terms to be as strong as possible for local conditions.
Simultaneous or back-to-back closings
With careful coordination, you can close your sale and purchase on the same day or within a few days so sale proceeds fund the new purchase. This reduces the need for interim financing but requires tight teamwork among lenders, title companies, and both sets of buyers and sellers.
Short rent-back to bridge the gap
If you sell first, you can negotiate a brief post-closing occupancy so you stay in the home for a set period while you close and move into the new one. Clear written terms should define the rent amount, duration, condition at move-out, and insurance responsibilities.
Buy, move, then list
Some owners prefer to buy and move first, then stage, improve, and list the former home. Carrying costs rise for a short time, but the home can show better and often sell faster. Your agent can help prioritize high-impact improvements for your neighborhood.
Columbus market factors
Columbus and Franklin County can move quickly in certain price bands and neighborhoods, especially in spring and early summer. Inventory and days-on-market shift through the year, so you want fresh, local data. For current trends, consult the Columbus REALTORS monthly reporting and your agent’s MLS snapshots.
Demand often follows job growth across education, healthcare, finance, and tech. You can track regional employment trends through the BLS Columbus MSA overview. Neighborhood dynamics vary across communities like Dublin, New Albany, Upper Arlington, Worthington, Powell, Hilliard, Grove City, Reynoldsburg, Lewis Center, and Delaware, so pricing and turnover can look different by area and season.
Budget and loan readiness
Buying before you sell means planning for overlapping costs and lender requirements. Use this checklist to stay organized:
- Budget for two mortgage payments, property taxes, insurance, utilities, maintenance, and potential HOA fees.
- Add bridge or HELOC costs if used, including origination, appraisal, and interest-only payments.
- Set aside funds for moving, staging, light repairs, and touch-ups before listing.
- Ask lenders about debt-to-income thresholds, combined loan-to-value limits, and cash reserves.
- Keep employment and income documentation current. Start with the CFPB’s mortgage basics to understand the approval process.
Taxes and legal basics in Ohio
Under current federal rules, many sellers can exclude up to 250,000 dollars of gain if single or 500,000 dollars if married filing jointly on the sale of a primary residence, if ownership and use tests are met. For details, review IRS Publication 523. Home improvements can increase your basis, which may affect taxes.
Ohio sellers must provide a residential property disclosure. You can read the statute that outlines the disclosure form in Ohio Revised Code 5302.30. Title and lien payoffs become especially important if you plan a same-day sale and purchase, so choose a title partner experienced with Franklin County.
For local property records, transfer documents, and tax info, visit the Franklin County Auditor and Franklin County Recorder. You can also explore programs and resources via the City of Columbus Department of Development.
Your step-by-step plan
Get a purchase preapproval that accounts for carrying two mortgages if needed. Confirm reserve requirements and any combined loan-to-value limits.
Estimate your net proceeds and timeline. Review neighborhood comps for both your current home and your target areas.
Explore funding tools. Compare bridge loans, HELOCs, cash-out refinances, and piggyback options, including term sheets and fees.
Set your timeline strategy. Decide between a sale contingency, simultaneous closings, a short rent-back, or a buy-move-list plan.
Prep your current home. Prioritize light updates, staging, and pro photography to maximize value and reduce days on market.
Coordinate the closing path. Engage your title company early if you plan a back-to-back or same-day closing.
Keep a margin of safety. Maintain cash reserves and a backup plan if your sale takes longer than expected.
Why work with The Oracle Group
You deserve a plan that fits your goals and the Columbus market. We pair neighborhood expertise across the metro with high-touch guidance, organized timelines, and full coordination from offer to closing. Our team connects you with trusted local lenders for bridge, HELOC, and conventional options, and we elevate your sale with curated listing marketing, staging support, and Coldwell Banker Concierge resources.
If you are considering a move-up purchase in Powell, Hilliard, Grove City, Reynoldsburg, Lewis Center, Delaware, or anywhere in Franklin County, we would love to help you map the cleanest path forward. Start the conversation with The Oracle Group.
FAQs
Can I buy a new Columbus home before my current one sells?
- Yes, if you qualify to carry both mortgages temporarily or use tools like a bridge loan or HELOC. Lenders assess your debt-to-income ratio, reserves, and equity.
How long do bridge loans usually last in Ohio?
- Bridge loans commonly run 6 to 12 months. You should have a clear exit plan, such as selling your current home or refinancing once it sells.
Are sale contingencies competitive in Franklin County?
- It depends on local inventory and days-on-market. In faster submarkets, sellers often prefer offers without sale contingencies, so weigh alternatives with your agent.
What costs should I expect if I carry two homes?
- Plan for two mortgage payments, taxes, insurance, utilities, maintenance, and duplicate closing costs. Add any bridge or HELOC fees and interest.
What are the tax basics when I sell my primary home?
- Many sellers can exclude up to 250,000 dollars of gain if single or 500,000 dollars if married filing jointly, subject to IRS rules. Review IRS Publication 523 or consult a tax professional.
What legal disclosures are required for Ohio sellers?
- Ohio requires a residential property disclosure detailing known property conditions. Ensure all agreements, including rent-backs, are in writing and clearly outline terms.
