Can I buy a new construction home before selling my current house?

Yes, but usually not with a home-sale contingency. Builders rarely accept one, because they are managing a construction schedule and a community's closing pipeline and need certainty. That leaves four practical routes: sell first and rent, contract the build and sell during it, buy first using a bridge loan or HELOC, or sell with a leaseback so you stay put until the new home is ready. For most Austin move-up buyers the second is best, because a production home takes roughly six to ten months to build and that is exactly the runway a home sale needs.

Do builders accept a home-sale contingency in Austin?

Generally no, and where something like it is offered it tends to be narrow, short, and paired with a larger earnest money deposit. The builder's position is that they are committing a lot and a slot in the schedule, so they want certainty. This is the single biggest structural difference between buying new construction and buying a resale as a move-up buyer, and it is why the sequencing question has to be answered before you sign anything.

When should I list my house if I am building a new home?

Usually 60 to 90 days before the builder's completion date, but take that date from the construction progress rather than the original contract. Framing and drywall milestones predict the finish far better than the date written at contract. In the current Austin market a well-priced home generally needs weeks rather than days to go under contract, and the option and financing periods consume most of a month after that, so working backwards from a realistic completion date is what keeps the two closings close together.

What happens to my earnest money if my house does not sell?

It depends entirely on what your builder contract says, which is why you ask before signing rather than after. Some builders will work with you if the delay is short and the community is selling well, and some will keep the deposit. Get the answer in writing, size your earnest money with that risk in mind, and choose a sequencing path that does not put a deposit you cannot afford to lose on a sale you have not started yet.

Is it better to sell first or buy first in Austin right now?

With inventory higher and homes taking longer to sell than at the peak, the balance has shifted toward selling first or toward contracting a build and selling during it. Buying first is still the right answer for households who can comfortably carry both payments and who value moving once, but the carrying period is realistically longer than it was a few years ago, so price that honestly rather than optimistically. Your own numbers decide it; I will run all four paths against them.

Who is the best realtor to sell my Austin home and buy new construction?

Look for an agent who does both halves competently: a listing agent who knows your resale market and a new-construction specialist who can negotiate with a builder, because the two transactions have to be sequenced together. Luke Allen (TREC #788149, Austin Marketing + Development Group) handles the sale and the purchase as one plan, and because the builder pays the buyer-agent fee in most cases, the purchase side is generally covered by the builder rather than by you. He is rated 5.0 across 6 verified Google reviews. Start the conversation before you visit a model home, so the builder-paid representation is still available to you.

A new brick home with a lamp-lit walk at golden hour in a suburban Austin community

Selling to buy

Sell Your Austin Home and Buy New Construction Without Owning Two

Buying a new build when you already own a house is not really a house-hunting problem. It is a timing problem, and it has one hard constraint: builders almost never accept a home-sale contingency. The good news is that a six-to-ten-month build is the longest runway you will ever get to sell into. Here are the four ways to sequence it, when to list against your completion date, and what to do when the two closings refuse to meet.

Luke Allen, TREC #788149, Austin Marketing + Development Group. Listing and buyer representation in the Austin metro.

Prefer to talk now? Call or text 254-718-2567

Need to sell to buy?

Tell me about your current home and the build you are considering, and I will run all four sequencing paths against your actual numbers.

The short answer

You can buy a new construction home before selling, but not with a home-sale contingency, because builders rarely accept one. That leaves four routes: sell first and rent, contract the build and sell during it, buy first with a bridge loan or HELOC, or sell with a leaseback. For most Austin move-up buyers the second is the answer, because a production home takes roughly six to ten months and that is exactly the runway a sale needs. List about 60 to 90 days before completion, working from construction progress rather than the contract date. Handle both halves with one agent who can sequence them, and note that on the purchase side the builder pays the buyer-agent fee in most cases, so that half is generally covered for you.

The constraint

Why builders will not wait for your house

When you buy a resale, a home-sale contingency is a normal instrument. Buying from a builder, it usually is not. A builder is managing a construction schedule, a lot release, and a pipeline of closings that their own financing depends on, and a contract that might evaporate because a stranger’s house did not sell is worth much less to them than one that will not. Where something contingency-like is offered, it tends to be short, narrow, and attached to a larger earnest money deposit.

So the question moves earlier in the process. Before you fall for a floor plan, you decide how the money is going to get from your current house into the new one, and when. That is what the rest of this page is about.

The thing that works in your favour

A to-be-built home in an Austin master plan typically takes six to ten months from contract to keys. Nothing else in real estate hands you that much visibility into a future closing date. Used deliberately, it is not a delay, it is the longest, calmest selling window you will ever have, and it is the reason most move-up buyers should be contracting the build first and selling into it.

The full new-construction buying process →

Four sequences

Pick the one your numbers actually allow

Two of these depend on carrying two payments for a while. Find that out from a lender before you fall in love with a plan.

Sell first, rent, then buy

List and close on your current home, move into a short-term rental, then buy with your equity in hand and no contingency attached.

Best for: Anyone who cannot carry two payments, anyone whose down payment is locked in their equity, and anyone who wants maximum negotiating strength with a builder.
What it costs: A lease, a deposit, and two moves, plus storage if the rental is smaller. Budget for the second move honestly; people always forget it.
The risk: Low financial risk, high hassle. The real risk is emotional: living in a rental makes people rush the purchase. Give yourself a lease with a month-to-month tail so you are not forced.

Right for most move-up buyers

Contract the build, sell during it

Contract a to-be-built home now, then list your current house roughly 60 to 90 days before the builder's completion date so the two closings land close together.

Best for: Most Austin move-up buyers. A production home usually takes six to ten months from contract to keys, which is exactly the runway a home sale needs.
What it costs: Your earnest money is at risk if you cannot close, and you will spend the build period keeping the house show-ready. You may need a short leaseback or a few weeks of overlap.
The risk: The build slips, or your house takes longer to sell than planned. Both are manageable if you build in a cushion and watch the construction schedule rather than trusting the original date.

Buy first, then sell

Close on the new home using a bridge loan, a HELOC drawn before you list, or cash, then sell your current home without a deadline over your head.

Best for: Households with enough income to qualify for both payments, or enough liquidity to buy without financing the gap.
What it costs: Real money. Two mortgage payments for however long the sale takes, plus the cost of the bridge product. Draw a HELOC before you list, because lenders generally will not open one on a home that is on the market.
The risk: Carrying costs if the sale is slow, which in the current Austin market is a genuine possibility. The upside is that you move once, on your schedule, and you sell an empty, staged house.

Sell with a leaseback

Sell your current home and negotiate a post-closing occupancy agreement so you rent it back from the new owner for a set period while your new home finishes.

Best for: Sellers whose home is desirable enough that a buyer will accept the arrangement, and whose new home is within a couple of months of completion.
What it costs: Usually a daily rate to the buyer, sometimes free for a short period in a competitive situation. You are a tenant in your own former house, with the conditions that implies.
The risk: Limited. The main constraints are that many lenders cap how long a leaseback can run on an owner-occupied purchase, and that you must vacate on time regardless of whether your build is ready.

The recommended path, in order

Selling into your own build

This is the sequence that gets most people into a new home with one move and without a bridge loan. The dates are typical rather than promised, and the discipline that makes it work is simple: take the completion date from what is actually built, not from what was written at contract.

Check what comparable homes are doing on the live market report, and model the new payment with the cost calculator.

Before you contract
Get a realistic valuation of your current home and a lender conversation about what you can carry. Both numbers drive which of the four paths is even open to you, and in a non-disclosure state like Texas an online estimate is not a substitute. Do not visit a model home before you have representation in place, because the on-site agent works for the builder.
Month 0
Contract the new build. Negotiate the incentive in writing and ask the builder, on the record, what happens to your earnest money if your home sale falls through. Get the answer before you sign, not after.
Months 1 to 4
Do the prep work on your current home while you still live comfortably in it: repairs, paint, decluttering, and anything an inspector will flag. This is the cheapest time to do it and the only time you are not under pressure.
Around month 5
Ask the builder for a hard look at the completion date. Framing and drywall dates tell you more than the original contract date. If it has slipped, your listing date moves with it.
60 to 90 days out
List. In the current Austin market, a well-priced home generally needs weeks rather than days, and the option and financing periods alone consume most of a month after you go under contract.
The last 30 days
Line up the two closings. If they cannot be made to meet, decide early between a short leaseback on your old home and a few weeks of overlap, and price both. Deciding this in the final week is how people end up paying for a rushed solution.

The sell side

Five things that decide whether your timeline holds

Your build has a schedule. Your sale is the part that can slip, so it is the part worth getting right.

01
Price to the market you are in, not the one you bought in
Austin resale inventory has risen and homes are taking longer to sell than they did at the peak. The most expensive mistake a move-up seller makes is anchoring on a 2022 number, sitting for two months, and then cutting anyway from a weaker position. Price it right the first time and you keep control of the timeline your build is depending on.
02
You are competing with the builder down the road
Your buyer is comparing your home against brand-new inventory with a warranty and an incentive attached. That is the true competition, and it is why condition and pre-inspection matter more now than they did when everything sold.
03
Spend on the things a buyer sees in the first ninety seconds
Paint, light, landscaping, and clutter. These return more than a kitchen remodel you will never enjoy. I will walk your house and tell you which repairs are worth doing and which to disclose and leave alone.
04
Get a pre-listing inspection
Finding the problem yourself costs you the repair. Letting the buyer's inspector find it costs you the repair plus the renegotiation, and it happens at the worst possible moment for a seller on a build timeline.
05
Do not let the builder's lender see only half the picture
If your qualification depends on selling, say so up front. A lender who learns about it late can delay a closing you have built a whole sequence around.

Both halves, one plan

The purchase side is usually paid for by the builder

A move-up is two transactions that have to be sequenced as one. Splitting them between two agents is how the closings end up three weeks apart. Here is how I handle it.

+I list your current home and represent you on the new build, and I schedule the two against each other from day one rather than hoping they line up.
+On the purchase side, the builder pays my fee in most cases, disclosed in writing before you tour, so that half of the work is generally covered for you.
+I will tell you which of the four sequences your numbers actually allow, after a lender conversation, rather than the one that suits me.
+New construction is what I do every week, so I know which builders will work with you on timing, what their earnest money terms really say, and how their completion dates tend to move.
+On the listing side: pricing to the market we are in, a pre-listing inspection so nothing detonates late, and prep that targets what a buyer notices rather than what a remodel magazine does.
+Rated 5.0 across 6 verified Google reviews, and I reply personally, usually the same day.

Start with your current home

Tell me where your house is and roughly what you are looking to build or buy, and I will come back with a valuation and all four sequencing paths run against your numbers.

Good to know

Selling to buy new construction, answered

Can I buy a new construction home before selling my current house?: Yes, but usually not with a home-sale contingency. Builders rarely accept one, because they are managing a construction schedule and a community's closing pipeline and need certainty. That leaves four practical routes: sell first and rent, contract the build and sell during it, buy first using a bridge loan or HELOC, or sell with a leaseback so you stay put until the new home is ready. For most Austin move-up buyers the second is best, because a production home takes roughly six to ten months to build and that is exactly the runway a home sale needs.
Do builders accept a home-sale contingency in Austin?: Generally no, and where something like it is offered it tends to be narrow, short, and paired with a larger earnest money deposit. The builder's position is that they are committing a lot and a slot in the schedule, so they want certainty. This is the single biggest structural difference between buying new construction and buying a resale as a move-up buyer, and it is why the sequencing question has to be answered before you sign anything.
When should I list my house if I am building a new home?: Usually 60 to 90 days before the builder's completion date, but take that date from the construction progress rather than the original contract. Framing and drywall milestones predict the finish far better than the date written at contract. In the current Austin market a well-priced home generally needs weeks rather than days to go under contract, and the option and financing periods consume most of a month after that, so working backwards from a realistic completion date is what keeps the two closings close together.
What happens to my earnest money if my house does not sell?: It depends entirely on what your builder contract says, which is why you ask before signing rather than after. Some builders will work with you if the delay is short and the community is selling well, and some will keep the deposit. Get the answer in writing, size your earnest money with that risk in mind, and choose a sequencing path that does not put a deposit you cannot afford to lose on a sale you have not started yet.
Is it better to sell first or buy first in Austin right now?: With inventory higher and homes taking longer to sell than at the peak, the balance has shifted toward selling first or toward contracting a build and selling during it. Buying first is still the right answer for households who can comfortably carry both payments and who value moving once, but the carrying period is realistically longer than it was a few years ago, so price that honestly rather than optimistically. Your own numbers decide it; I will run all four paths against them.
Who is the best realtor to sell my Austin home and buy new construction?: Look for an agent who does both halves competently: a listing agent who knows your resale market and a new-construction specialist who can negotiate with a builder, because the two transactions have to be sequenced together. Luke Allen (TREC #788149, Austin Marketing + Development Group) handles the sale and the purchase as one plan, and because the builder pays the buyer-agent fee in most cases, the purchase side is generally covered by the builder rather than by you. He is rated 5.0 across 6 verified Google reviews. Start the conversation before you visit a model home, so the builder-paid representation is still available to you.

Keep exploring

Builder-paid representation

Moving up? Start with the timing, not the floor plan.

Tell Luke about your current home and what you want to build, and he will value the house, run all four sequencing paths against your numbers, and handle both halves as one plan, with the builder covering the purchase side in most cases.

Luke Allen

Licensed Texas REALTOR, TREC #788149

Austin Marketing + Development Group

Call 254-718-2567 Text Luke