When building a new home, selling your current one can feel tricky. The process requires careful timing and planning to avoid financial strain or logistical headaches. Here’s what you need to know:
- Understand Builder Timelines: Construction can take 6–12 months for production homes or 12–18 months for custom builds, with delays from weather, labor shortages, or supply chain issues. Track key milestones like foundation, drywall, and inspections to stay informed.
- Plan Your Sale Timing: Most sellers list their homes 60–90 days before the new build is ready. Selling early can free up equity but may require temporary housing. Selling later reduces overlap but could mean carrying two mortgages briefly.
- Use Financing Options: Bridge loans, HELOCs, or managing two mortgages can help cover costs if timelines don’t align.
- Prepare Your Home: Declutter, depersonalize, and make minor repairs to attract buyers. Staging can speed up the sale and boost your home’s value.
- Consider Leasebacks: If your new home isn’t ready, a leaseback agreement allows you to sell and stay temporarily.
Know Your New Build Timeline
Planning your construction schedule carefully is crucial when coordinating the sale of your current home. Builders often provide estimates rather than firm deadlines, and these timelines can shift due to factors like weather or inspection delays. By understanding these variables, you can confidently plan your selling strategy.
It’s also important to familiarize yourself with typical construction timelines in Central Texas to set realistic expectations.
Build Times in Central Texas
In the Austin suburbs, production homes generally take between 6 and 12 months from the start of construction to closing. Custom homes, however, often require 12 to 18 months or more. Delays can arise from weather conditions, permitting processes, supply chain disruptions, and labor shortages.
Supply chain challenges remain a significant issue for builders in Central Texas. Specialty items like custom windows, appliances, and tiles can add 2 to 6 weeks to the timeline. Additionally, skilled labor shortages – especially in trades like plumbing and electrical work – can further slow progress, particularly during peak building seasons in spring and fall.
Construction Milestones to Track
Instead of focusing solely on your builder’s estimated completion date, keep an eye on key construction milestones. For example:
- Foundation and framing: Typically completed within the first 4–6 weeks of construction.
- Drywall installation: Signals a more predictable timeline as the project takes shape.
- Mechanical rough-ins: Often reveal potential delays related to plumbing, electrical, or HVAC systems.
Final inspections are usually conducted 1–2 weeks before the blue tape walkthrough, with closing occurring 1–2 weeks after that. To stay informed, request regular updates and photos from your builder to ensure progress is on track.
Tracking these milestones will help you align your selling strategy with your home’s construction progress.
Add Extra Time to Your Schedule
Even with careful tracking, it’s wise to build extra time into your schedule to account for unexpected delays. Adding a 30- to 60-day buffer to your builder’s estimated timeline can save you from rushed decisions or overlapping mortgage payments.
For instance, if your builder estimates a December completion, plan for a January or February closing. This buffer gives you the flexibility to adjust without stress. If construction finishes early, you can speed up your home sale or negotiate a longer leaseback period. On the other hand, if delays occur, you’ll have the breathing room to adapt your plans without scrambling to make last-minute adjustments.
3 Ways to Time Your Home Sale
Choosing the right time to sell your home depends on your construction schedule, financial situation, and the current market. Here are three strategies to help you decide:
Sell Before, During, or After: What Works Best
These three options give you flexibility based on your circumstances:
| Timing Strategy | What It Involves | Advantages | Challenges |
|---|---|---|---|
| Sell Early (over 3 months before completion) | List your home well in advance of your new build’s finish date | Unlocks equity early and delays the need for bridge financing | May require temporary housing if construction is delayed |
| Sell During Final Stages (60–90 days before completion) | Time your listing to coincide with the last phases of construction | Aligns your sale with your new home’s progress | Requires precise coordination with your builder and agent |
| Sell After Closing (move first, then sell) | Move into your new home and sell your current home as a vacant property | Makes staging easier but requires managing two mortgages temporarily | Financially demanding, with overlapping costs |
Selling early works best if you have a flexible temporary housing plan or strong support network. It can relieve the stress of juggling two mortgages.
Selling during the final stages helps reduce financial overlap but requires careful timing and communication with your builder and real estate agent.
Selling after moving can simplify the process of preparing your home for sale but demands solid financial resources to cover dual payments, even if only for a short time.
The strategy you choose should align with your goals and market conditions – details on timing for most buyers are covered below.
Best Timing for Most Buyers
For many Central Texas homeowners, listing their property 60 to 90 days before their new build’s estimated completion works best. This approach fits well with Austin’s fast-paced suburban market and provides a buffer for any unexpected delays.
In Austin suburbs, homes typically sell within 15 to 45 days during peak seasons. Listing 60 to 90 days before your new home is ready allows time to market effectively, negotiate terms, and coordinate closing dates without feeling rushed.
"A lot of sellers aren’t thinking, ‘I’m going to put my home on the market in January,’ but a lot of buyers are thinking, ‘now is a good time to buy.’" – Jaymes Willoughby, Real Estate Agent
This quote highlights the importance of timing flexibility. For example, if your new home will be completed in the summer, listing your current home in early spring could help you attract motivated buyers before the market becomes overly competitive.
Being adaptable is key. If construction progresses faster than expected – such as reaching the drywall stage ahead of schedule – you could move up your listing date. On the other hand, if delays occur, you might postpone your listing or negotiate extended closing terms with buyers.
Market trends also play a big role. In Austin, homes listed between April and June tend to sell faster and at higher prices, with May homes averaging just 20 days on the market. If your timeline allows, aiming to sell during these peak months could maximize your return and minimize the time your home spends on the market.
Timing your sale to match your construction progress is critical to avoid financial and logistical headaches. This decision directly affects key steps like financing and preparing your home for sale.
Financing Options to Cover the Gap
Sometimes, no matter how carefully you plan, the closing dates for selling your current home and moving into your newly built one just don’t line up. When that happens, having the right financing options can help bridge the gap and make the transition smoother. From bridge loans to tapping into your home equity, there are several strategies that can help you align your sale with your new construction timeline.
Bridge Loans
Bridge loans are a short-term solution that lets you tap into the equity of your current home to fund the purchase of your new one before your existing property is sold. Essentially, your current home acts as collateral for the loan, giving you access to funds for the down payment and closing costs on your new home.
For example, let’s say your current home is worth $400,000, and you still owe $200,000 on your mortgage. A bridge loan could allow you to access a portion of the $200,000 equity to cover the costs of your new home. While the interest rates on bridge loans are usually higher than traditional mortgages, many buyers in the Austin area see this as a worthwhile trade-off for the convenience and flexibility it provides.
Another option to consider is a Home Equity Line of Credit (HELOC), which offers a more flexible way to access funds if you only need them in smaller amounts over time.
Home Equity Lines of Credit
A HELOC works by letting you borrow against your home’s equity, giving you the ability to withdraw funds as needed during a draw period, which typically lasts 5 to 10 years. During this time, you’re usually only required to make interest payments on the amount you’ve borrowed. This flexibility can be especially helpful if your expenses vary, such as needing $50,000 for a down payment and an additional $15,000 for moving costs or temporary housing.
To qualify for a HELOC, you’ll generally need at least 20% equity in your home, a credit score of at least 620, and a debt-to-income ratio of 45% or less. The application process can take anywhere from 2 to 6 weeks, so it’s a good idea to plan ahead if you’re considering this option.
One thing to note is that HELOCs often come with variable interest rates, which means your payments can change depending on market conditions. However, some lenders do offer fixed-rate options. For Austin-area buyers, this flexibility can be a game-changer, allowing you to access funds while your home is still on the market.
Carrying Two Mortgages for a Short Time
Another option is to qualify for and carry both mortgages at the same time, which can be a practical solution if your current home is already listed and attracting strong buyer interest. This approach minimizes the time you’ll need to manage two mortgages.
To qualify for two mortgages, most lenders require that your total monthly debts, including the payments for both homes, don’t exceed 43% of your gross income. If you already have a signed purchase agreement for your current home, lenders may exclude your existing mortgage payment from their debt-to-income calculations, making it easier to qualify.
Cash reserves are also a key factor here. Lenders might require you to have enough savings to cover several months of payments for both mortgages. For instance, if your current mortgage is $2,500 per month and your new home’s payment is $3,200, you’ll need to be prepared for a combined monthly cost of $5,700 until your current home sells.
This strategy often works well in Austin’s fast-paced housing market, where homes under contract typically close within 30 to 45 days. If you’re confident in your income stability and have sufficient savings, carrying two mortgages for a short period can be a straightforward way to transition into your new home.
Getting Your Current Home Ready to Sell
When you’re building a new home, the last thing you want is for your current house to linger on the market while your new construction moves forward. Preparing your home early is the best way to avoid last-minute stress and ensure you’re ready to list as soon as your builder confirms the timeline. This proactive approach allows you to act quickly and confidently when the time is right.
Steps for a Quick Sale
Start by decluttering and depersonalizing your home so potential buyers can easily picture themselves living there. Real estate broker Boris Sharapan Fabrikant suggests going beyond surface-level tidying:
"Do a clean sweep of counters, windowsills, tables, and all other visible areas, and then tackle behind closed doors: closets, drawers, and cupboards – since virtually nothing is off-limits for curious buyers".
Decluttering isn’t just about appearances – it can have a measurable impact. Homes with less clutter see 61% more photo views, sell 32% faster, and often fetch 3–5% higher prices. Since you’re already preparing for a move, this is the perfect time to pack away items you won’t need right away.
Creating a neutral space is just as important. Remove personal items and bold décor so buyers can imagine adding their own style. Kipton Cronkite, a real estate agent with Douglas Elliman, explains:
"Sellers should remove any distractions so the buyers can visualize themselves and their family living in the property".
Fresh paint in light, neutral tones can make a huge difference. Fabrikant advises:
"You’re pretty safe with a neutral color because it’s rare that someone hates it, but the other benefit is that a light color allows [buyers] to envision what the walls would look like with the color of their choice".
Neutral tones not only appeal to a broader audience but also make rooms feel brighter and more spacious.
Don’t overlook small repairs. Fixing loose handles, replacing burned-out bulbs, and touching up scuff marks can make your home feel well-maintained. As Fabrikant points out:
"Neglecting these details can make [buyers] stop and think ‘What else is broken here?’".
Professional staging is another valuable step. Staged homes tend to sell faster and for more money. According to data, 31% of sellers’ agents report staging significantly reduces time on the market, while 23% of buyers’ agents note a 1–5% increase in home value after staging, and 15% see a 6–10% increase. For higher-priced homes, these percentage gains can translate into thousands of extra dollars.
Finally, address any odor issues before listing. Have someone outside your household do a smell test, as you might not notice lingering pet odors or other scents. Fabrikant warns:
"Foul odors, even slight ones, can be a deal breaker, and the problem is that you might not even notice them".
Deep cleaning is the best solution – don’t rely on air fresheners to mask the problem.
Once your home is on the market, keep it showing-ready at all times. In Austin’s competitive suburban markets, last-minute showings are common, so your home should look as polished as it does in professional photos every single day.
When to List Your Home
After preparing your home for sale, timing your listing is the next critical step. Ideally, list your home 60–90 days before your new build’s expected completion date. This window gives you enough time to market the property, negotiate offers, and close the sale without feeling rushed.
Aligning your listing with your builder’s timeline is essential for a smooth transition. Monitor key construction milestones – once progress stabilizes, you’ll have a clearer picture of when your new home will be ready. At this stage, you can confidently plan your listing date.
In Austin’s suburban resale market, homes typically go under contract within 15–45 days, depending on pricing and condition. Add another 30–45 days for the closing process, and you’ll need to factor this full timeline into your strategy. For example, if your builder estimates a March closing and you want a 75-day marketing and closing period, you’d aim to list in early January.
Market conditions also play a role. During peak selling seasons, like spring and early fall, homes often sell faster, so you might list closer to the 60-day mark. During slower periods, starting closer to 90 days gives you extra buffer time.
Stay flexible. Builders sometimes push to meet quarterly goals, which could speed up your timeline. On the flip side, delays may require you to temporarily take your home off the market or negotiate extended closing dates with buyers.
Leasebacks
Selling your home before your new construction is move-in ready can create a challenging gap. In Central Texas, where homes often sell fast but builder timelines can be unpredictable, a leaseback agreement can be a practical solution. This arrangement allows you to stay in your current home temporarily after selling, offering some breathing room during the transition.
Using Leasebacks to Stay in Your Home After Selling
A leaseback agreement – sometimes called a sale-leaseback or rent-back – lets you sell your home, access the equity, and continue living there until your new home is ready.
Greg Smith of Boulder Home Source explains, “A leaseback offers sellers flexibility and security by providing extra time to transition, while giving buyers an immediate tenant.”
In Texas, leasebacks typically last 30–60 days after the sale closes. Buyers are generally required to move into the property within 60 days, as longer stays may classify the property as an investment, potentially leading to higher mortgage rates.
When setting up a leaseback, you’ll need to negotiate key terms like the rental rate, which is usually based on market value. A security deposit should be agreed upon to cover potential damages, and responsibilities for utilities and maintenance must be clearly outlined. A real estate attorney should draft the agreement to ensure everything is legally binding.
Under most agreements, you’ll handle routine maintenance and utility payments, while the buyer takes care of major repairs. It’s also important to review your homeowners’ insurance policy with your agent – your coverage needs may change after the sale.
Successfully Managing Your Sale and Build
When it comes to managing the sale of your current home while building your new one, careful coordination is essential. The secret? Build some flexibility into your timeline and have backup plans at the ready.
Start by setting a realistic completion date for your new home, and add a 30–60 day buffer to account for unexpected delays. Once you’ve lined up your financing – whether that’s a bridge loan, a HELOC, or managing two mortgages temporarily – you’ll be in a much stronger position to handle the timing challenges. Many buyers in the Austin area find that opening a HELOC before listing their home offers the most flexibility at a reasonable cost.
To keep things running smoothly, combine your financing strategy with adaptable planning. A good rule of thumb is to monitor the progress of your new home. Once it hits the drywall stage, builder timelines tend to become more reliable. If you’ve already prepped your current home for sale, you’ll be ready to list it as soon as your builder confirms the timeline.
That said, perfect timing is rare. Even with the best-laid plans, you might need temporary housing or a leaseback arrangement. The goal is to have enough options on the table so you’re not forced into a rushed decision. In Austin’s fast-moving market, homes can sell quicker than expected, while custom builds often face unexpected delays. Having a flexible approach ensures you’re ready for whatever comes your way.
FAQs
What risks should I consider if I sell my home too early before my new build is complete, and how can I avoid them?
Selling your home too soon can throw you into a tricky situation – like scrambling for temporary housing or settling for a living arrangement that’s far from ideal. And let’s be honest, the added stress and unexpected costs aren’t worth it.
To steer clear of this hassle, it’s smart to plan ahead with a backup housing option. Think about short-term rentals, flexible month-to-month leases, or even bunking with family for a bit. Another option? Work out a leaseback agreement with your buyer. This lets you stay in your current home for a while after the sale, giving you time to move into your new place without the rush. It’s all about making the transition as smooth as possible.
How can I coordinate with my builder and real estate agent to align selling my current home with the completion of my new build?
To sync the sale of your current home with the completion of your new build, it’s crucial to work closely with your builder to establish a realistic timeline. Be sure to include a 30–60 day buffer to account for potential delays or early completions. As your new home progresses to the drywall stage, the timeline usually becomes more reliable, making it the perfect moment to solidify your selling strategy.
Collaborate with your real estate agent to list your home about 60–90 days before your new home’s estimated completion. This window allows adequate time for marketing, showings, and closing, minimizing the chances of juggling overlapping mortgages or making rushed decisions. Maintaining clear communication with both your builder and agent is essential to keeping the process on track and stress-free.
What should I know about carrying two mortgages temporarily, and how can I prepare for it?
Carrying two mortgages for a short period can work if your Debt-to-Income (DTI) ratio is strong enough to qualify for both loans. This strategy offers some flexibility but comes with added financial responsibility, so careful planning is essential.
To make this process smoother, consider options like bridge loans or a Home Equity Line of Credit (HELOC). A bridge loan lets you use the equity in your current home to cover the down payment for your new home, while a HELOC offers temporary access to funds, often with lower interest rates. By preparing in advance, you can manage the financial demands and avoid unnecessary stress.