This is an estimate for planning. It is not a quote, an appraisal, a loan offer, or tax or legal advice, and Rudy is a real estate agent, not a lender, attorney or tax professional.
The four paths in plain English
Sell first
Sell your current home, then buy the one you plan to keep with the proceeds ready. You can ask your buyer to let you stay briefly after closing, and rent if you need longer.
When owners often choose it: Downsizers who want to know their exact budget before choosing a home to keep.
Tradeoffs: A period between homes, rent while you wait and, if the wait is long, two moves.
Same-day closings
Wait until your buyer’s contingencies are removed, then make an offer without a sale contingency and close both on the same day; the sale pays for the purchase.
When owners often choose it: Owners who want to move once, pay no rent, and have a buyer willing to close a little later.
Tradeoffs: A longer escrow for your buyer, and one closing waits on the other if anything runs late.
Contingent offer
Offer on your next home on the condition that your current one sells, written on C.A.R.’s COP addendum, so both close together.
When owners often choose it: Owners who have already found the home they want to keep and a seller who will wait.
Tradeoffs: Sellers holding several offers may pass on a contingent one. You’ll agree on how long the contingency runs and whether the seller can keep marketing.
Buy first with equity
Borrow the down payment against your current home, using an equity line arranged before the listing or a bridge loan. Move into your next home first, then sell the old one and repay what you borrowed.
When owners often choose it: Owners with a lot of equity who want to move at their own pace and leave the old house empty for showings.
Tradeoffs: Paying for two homes for a while, plus interest and fees, and a lender who approves you with both.
Rent-backs: put it in writing
Leaving a long-time home takes time, and a rent-back can give you some. A stay of 29 days or less usually goes on C.A.R.’s SIP; anything from 30 days up is an RLAS lease, and California’s tenant rules come with it (San Diego Association of REALTORS®). It’s written into the sale, and your buyer must agree.
Contingent offers
C.A.R.’s COP form, updated in June 2024, makes your purchase contingent on your sale. In it you and the seller settle the selling window, whether the home stays on the market and the steps if another buyer appears. Rudy goes through it with you.
Questions to ask your lender
- While my current home is still mine, will both payments count against me? Fannie Mae’s guide says yes until a buyer is in contract and past the financing contingencies.
- Would you open an equity line on my current home ahead of the listing, and how is that rate figured and changed?
- Do you offer a bridge loan, and how would it affect what I qualify for?
- If my closing moves, how long can my rate stay locked and what does extending it cost?
Owners 55 and older: Proposition 19 timing
For many owners moving to a forever home, Proposition 19 is the biggest number in the plan. Qualifying owners (55 or older, severely disabled, or wildfire and disaster victims) may bring their current tax base along to a new home they buy or build within 2 years of their sale, either before or after it.
The replacement must pass a value test: up to 100% of the original’s value when bought before the sale, 105% within one year after and 110% within two. If you buy first, the Board of Equalization says the transfer applies as of the later transaction, and you pay full-value tax in the meantime without a refund. The county assessor rules on eligibility, and a tax adviser can review your dates.
Picking the home you’ll keep? Check the property tax effect in the downsizing calculator.
About these numbers
- Days are calendar days; dates on a weekend are labeled, not changed.
- Each path ends with equal equity after both closings. The cash you need in between and the added costs are what set them apart.
- Rent and the cost of owning two homes are prorated by day.
- Capital gains and income tax aren’t included, so ask a CPA. Rates and approval are up to your lender.
Questions owners ask
Is it better to downsize before or after I buy?
It depends on your equity, your income and what the next home costs. If the smaller home costs less, buying first may need only a modest equity loan; the table shows each path’s cash and costs.
Can I take my time moving out after I sell?
A rent-back lets you stay for an agreed time if your buyer agrees. Up to 29 days is usually an SIP addendum; longer stays need a lease.
How does Proposition 19 affect the order?
If you buy first, you may pay tax on the new home’s full value until your sale closes, with no refund. Selling first avoids that gap, but your assessor confirms what applies.
What if I can’t find the right home quickly?
Change the days to find the next home in the form. Selling first with a longer search means more rent, while a contingent offer or buying first lets you stay put until you move.
Sources: Zillow Research home values, rents and days to pending (Sep 2026); Freddie Mac Primary Mortgage Market Survey (Oct 29, 2026); FRED bank prime loan rate (Oct 27, 2026); NAR 2025 Profile of Home Buyers and Sellers (summary) (Dec 8, 2025); Freddie Mac: budgeting for upfront homebuying costs (Jun 4, 2025); California Civil Code 1675; CFPB: private mortgage insurance (Aug 28, 2023); CFPB: home equity lines of credit (Aug 28, 2026); Fannie Mae Selling Guide B3-6-06 (Sep 2, 2026); C.A.R. list of standard forms (Oct 30, 2026); San Diego Association of REALTORS®: post-closing occupancy (Aug 27, 2025); California State Board of Equalization: Proposition 19 (Oct 30, 2026). Your contracts, your lender and the county assessor have the final word on your own dates, loan and taxes.
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