What is bridge financing and is it worth it?

It depends on your risk tolerance and timeline flexibility. Selling first removes the risk of carrying two mortgages and makes your next offer stronger (non-contingent), but can create a housing gap if your next purchase takes longer than expected — a rent-back agreement on your sale is the most common way to solve that gap.

A rent-back agreement lets you sell your home and then continue living in it for an agreed period afterward — often 30 to 60 days — while paying the new owner rent. It gives sellers time to find and close on their next home without needing temporary housing in between.

A contingent offer makes your purchase dependent on your current home selling by a certain date. It does typically weaken your offer compared to a non-contingent buyer, since sellers generally prefer certainty — in a competitive situation, a seller may choose a lower non-contingent offer over a higher contingent one.

As early as possible — ideally before you start seriously touring homes to buy, and definitely before you list your current home. The available options (rent-back, contingent offer, bridge financing) work best when built into your strategy from the start rather than negotiated under pressure after a deadline appears.