Wish you could move into your next Martinez home without juggling storage, short-term rentals, or two stressful moves? You are not alone. Many East Bay homeowners want a smoother path to the next place while keeping control of timing and costs. In this guide, you will learn how to buy your next home before you sell your current one, what to watch in the Martinez market, and a step-by-step plan that keeps your risk in check. Let’s dive in.
What “buy before you sell” means
Buying before you sell means you purchase your next home while you still own your current one. You might carry two mortgages for a short period, use a bridge loan or HELOC to fund the down payment, or structure your offer with contingencies that protect you.
Why many Martinez owners choose this path:
- You avoid temporary housing and multiple moves.
- You can compete for the right home in a tight inventory market.
- You gain time to prepare your current home for market without rushing.
Tradeoffs to plan for:
- You could carry two housing payments for a period.
- There may be extra costs, such as bridge loan fees or HELOC interest.
- If the market cools while you wait to sell, your net proceeds could be lower than expected.
Martinez market factors to check first
Your best strategy depends on how competitive the local market is right now. Before you commit, pull the latest Martinez and Contra Costa trends, including median sold price, active inventory, months of supply, median days on market, and the share of sales above asking.
- For local trend snapshots, review the Contra Costa Association of Realtors resources and market reports from the Contra Costa Association of Realtors.
- For broader Bay Area and state context, check the California Association of Realtors market data.
Here is why these indicators matter:
- Low inventory and faster sales make sale-contingent offers harder to win. Buying first with clean terms can help you secure the right home.
- Slower sales and longer days on market make selling first or using a contingency more feasible.
Local realities also shape your timing. Martinez neighborhoods vary by proximity to BART, highways, and regional job centers. Micro-markets can move at different speeds, so ask your agent to break down trends by area and property type. Many California escrows close in about 30 to 45 days, but timelines can vary in Contra Costa based on lender speed, appraisal timing, and contract terms.
To keep your financing outlook current, follow national rate trends through the Freddie Mac Primary Mortgage Market Survey and get quotes from local lenders.
Your main ways to buy first
Carry two mortgages
How it works: You finance the new home with a standard mortgage while keeping your current mortgage until you sell. This produces a clean, non-contingent offer.
Pros: Strong offer and straightforward loan structure. You keep control of timing on your sale.
Cons: You must qualify while carrying both payments, and you need enough reserves to cover taxes, insurance, utilities, and maintenance on two homes.
Best for: Buyers with solid income, strong reserves, and confidence that their current home will sell on a known timeline.
Bridge loan or short-term acquisition loan
How it works: A short-term loan, often secured by your current home’s equity, covers the down payment or the purchase. You repay it when your existing home sells, typically within 6 to 12 months.
Pros: Lets you write a strong, non-contingent offer and move quickly.
Cons: Rates and fees are usually higher than a standard mortgage. You need a realistic exit plan and a clear view of the total cost.
Consumer tip: Review costs, term, and payoff requirements. The CFPB mortgage resources can help you compare options and understand short-term financing risks.
HELOC or home equity loan
How it works: You tap your current home’s equity for the new down payment.
Pros: Often less expensive than a bridge loan and flexible to draw as needed.
Cons: It adds a second lien to your current home and may affect your combined loan-to-value for the new loan.
Consumer tip: Learn the basics with the CFPB’s HELOC explainer, then ask lenders how a HELOC will impact your qualifying.
Portfolio or flexible-qualifying loans
How it works: Some Bay Area banks and credit unions offer non-conforming or asset-focused loans that can help you qualify while carrying two homes.
Pros: Underwriting can be more flexible than conventional standards.
Cons: Rates and down payment requirements may be higher. Guidelines vary by lender.
Best for: Buyers with strong assets or unique income profiles who need flexibility.
Sale-contingent offer
How it works: Your purchase is contingent on selling your current home. You often specify how quickly it must go under contract or close.
Pros: You avoid holding two mortgages and minimize short-term financing costs.
Cons: In competitive segments, sellers often prefer non-contingent offers. You might need to sweeten terms or accept a longer search.
How to improve it: Shorten contingency periods, add a bump clause that lets the seller keep marketing the home, or provide strong proof of funds and lender approval.
Rent-back and escrow holdbacks
Rent-back: If you sell first, you can negotiate a post-closing occupancy so you stay in your home as a tenant for a set period. This can reduce double moves and let you align closings.
Escrow holdback: Funds are held in escrow to cover specific repairs or agreed items after closing. This is useful when timing is tight but should not replace addressing major issues.
Always set clear terms for rent-backs, including rental amount, insurance, deposits, and condition at move-out. Your title company and escrow officer can guide the documentation and logistics.
A step-by-step plan that works in Martinez
Follow this practical sequence. Time ranges are estimates and can be shorter or longer based on your situation.
Step A — Financial assessment (2–7 days)
- Get your current mortgage payoff and estimate net proceeds after commissions and closing costs.
- Obtain a lender pre-approval that models three scenarios: carrying two mortgages, using a bridge loan or HELOC, and making a sale-contingent offer.
- Build a carrying-cost budget that includes two mortgage payments, property taxes, insurance, utilities, HOA fees, and maintenance.
- Set aside emergency reserves beyond the new mortgage. Your lender can specify reserve requirements.
Step B — Market and timing analysis (1–7 days)
- Pull the latest Martinez and Contra Costa stats for median price, inventory, days on market, and the share of sales over asking. Start with CCAR resources and confirm trends against C.A.R. market data.
- Ask your agent how sellers are evaluating offers this month in your target micro-markets.
Step C — Decide strategy and line up your team (1–14 days)
- Get quotes from two or three local lenders for bridge, HELOC, and portfolio loan options. Compare total cost, term, and exit plans.
- Engage a listing agent and a buyer’s agent who coordinate timing, inspections, and disclosures. Confirm how dual agency is handled if both sides are in one brokerage.
- Loop in your title/escrow officer for guidance on rent-back terms or holdbacks. If your agreement is complex, consult a real estate attorney.
Step D — Prepare both properties (concurrent)
- Your current home: Order a comparative market analysis, complete list-ready repairs, and set a staging timeline tied to your move date.
- Your next home: Schedule inspections, track appraisal timing, and manage contingency deadlines if your offer is contingent.
Step E — Make offers and negotiate (timing is critical)
- If you can go non-contingent, have proof of funds or bridge/HELOC approval ready to share.
- If you need a sale-contingency, shorten time frames where possible and consider escalation pricing or additional earnest money to stand out.
- On your sale, consider offering a rent-back to align your move and avoid storage and temporary housing.
Step F — Close coordination and moving
- Try to align closing dates for a smooth handoff. If not possible, use a well-drafted rent-back to bridge the gap.
- Confirm insurance effective dates, utility transfers, and mover reservations.
- If you are carrying two homes, track monthly costs and list your current home promptly with professional marketing.
Quick checklist
- Current monthly payment and projected new payment
- Down payment amount and source (equity, HELOC, bridge loan)
- Estimated bridge or HELOC fees and monthly interest
- Expected selling costs and potential concessions
- Target net proceeds and break-even timeline if carrying two payments
- Emergency reserves after both closings
Taxes, insurance, and legal points to consider
Property tax base transfer: California Proposition 19 may let eligible homeowners transfer their assessed value to a new home under specific rules. Start with the Contra Costa County Assessor and the state’s Prop 19 overview. Filing deadlines and documentation matter, so confirm details early.
Capital gains on your sale: Many sellers can exclude part of the gain on a primary residence if ownership and use tests are met. Review the IRS guidance in Publication 523 and speak with a tax professional about your situation.
Rent-back terms and insurance: If you sell first and stay post-close, make sure the agreement addresses payment, deposits, condition, utilities, insurance requirements, and indemnities. Buyers who accept a rent-back may need additional coverage. Your title and escrow team can help with forms and logistics.
Earthquake and homeowners insurance: East Bay seismic risk can affect availability and cost. Ask your insurance provider for quotes on homeowners and optional earthquake coverage, and include those premiums in your carry budget.
Mortgage qualification and reserves: Lenders use debt-to-income rules that can change with product type and market conditions. Get written pre-approval that confirms you qualify under your chosen strategy. The CFPB mortgage resources can help you compare loan terms and understand fees.
Which strategy fits Martinez buyers today?
Use this simple decision flow to narrow your path:
- If you have strong reserves, stable income, and significant equity, and your target Martinez segment is competitive, consider carrying two mortgages or using a bridge or HELOC to write a clean offer.
- If your cash is tighter or the market is slower in your subarea, explore a sale-contingent offer with shorter timelines and a bump clause to make it more attractive to sellers.
- If you prefer absolute certainty on your proceeds, sell first and negotiate a rent-back so you can shop without rushing. Pair this with a firm pre-approval and a clear move timeline.
The right answer depends on current inventory, your financial profile, and the specific neighborhood you are targeting. A precise pre-approval and a local data check will point you to the safest plan.
Ready to map your timing and numbers with a local team that blends negotiation and lending know-how? Reach out to MVP Real Estate for a personalized buy-before-you-sell plan, lender introductions, and a coordinated listing strategy. Hablamos español.
FAQs
Can I qualify for two mortgages in Martinez?
- Possibly. It depends on your debt-to-income ratio, reserves, and the loan product. Get a written pre-approval that models carrying two payments and any short-term financing.
How much cash do I need to buy before I sell?
- Plan for the down payment and closing costs on the new home, plus reserves and any bridge or HELOC fees. Build a carry budget that includes taxes, insurance, utilities, and HOA.
Will a seller accept my sale-contingent offer in Martinez?
- It depends on inventory and days on market in your price range. In tighter segments, you may need shorter timelines, stronger earnest money, or a bump clause to compete.
What if my current home takes longer to sell than planned?
- You may carry it longer, adjust pricing, or consider renting it. Before you write an offer, set a worst-case carry timeline and confirm you have the reserves to cover it.
Is a rent-back after closing safe for both sides?
- Yes, when documented properly. Use a written agreement that covers payment, deposits, condition, insurance, and indemnities. Ask your escrow officer and agent to guide the terms.
Can I transfer my property tax base under Prop 19?
- Some eligible homeowners can, subject to rules and timelines. Start with the Contra Costa County Assessor and review the state Prop 19 overview, then confirm your eligibility with a professional.
