Eyeing a larger home in Highland Park or University Park but not sure whether to buy before you sell? You are not alone. Many Park Cities move-up buyers weigh speed and convenience against financial risk, especially with today’s interest rates. In this guide, you will learn the pros and cons of each path, what local sellers prefer, and how tools like bridge loans, HELOCs, leasebacks, and contingencies actually work here. Let’s dive in.
Park Cities market realities
Park Cities is a high-demand, high-price enclave inside the Dallas–Plano–Irving metro. Inventory is often tighter than the broader Dallas market, and well-priced homes can draw quick interest. Homes at the top of the market that need renovation may sit longer. That mix shapes your timing strategy.
Higher mortgage rates since 2022 affect affordability and make carrying two mortgages tougher for many households. In competitive periods, sellers in the Dallas area often prefer offers without sale contingencies. Contingent offers see better odds when inventory rises or when you pair them with strong terms like larger earnest money and shorter timelines.
The takeaway for Park Cities: buying first can help you compete for the right home, while selling first can lower financial risk. Your equity, reserves, and timing needs will guide the best path.
Option 1: Sell first, then buy
How it works: You list and close on your current home, then use the proceeds for your Park Cities purchase. You may need a short-term rental or a leaseback while you shop.
Pros
- Reduces risk since you do not carry two mortgages.
- Simplifies financing and underwriting.
- Gives you clear proceeds for your down payment.
Cons
- You may face temporary housing if you do not find the right home in time.
- In a hot period, you might accept less favorable terms to meet your timeline.
- Limited inventory can make timing tricky if you have fixed dates.
Local tip: Leasebacks are a practical way to stay in place after closing while you secure your next home. Clear terms, rent, and insurance should be negotiated in writing.
Option 2: Buy first, then sell
How it works: You purchase the new home and keep the current one on the market until it sells. This requires funds for the down payment and the ability to qualify for both mortgages.
Pros
- Stronger buying position with fewer constraints.
- You can time your sale for presentation and price.
- You avoid rushing a purchase.
Cons
- You carry two mortgages plus taxes, insurance, and utilities until your home sells.
- You must qualify for total debt and may need added reserves.
- If your home takes longer to sell, your costs increase.
Local tip: Non-contingent offers are often more competitive in Park Cities. If you buy first, plan your sale prep early so you can list quickly.
Bridge and equity tools
Bridge loans
How it works: A short-term loan secured by your current home provides funds for your new down payment until your home sells.
Pros
- Lets you buy first without two long-term mortgages.
- Can help you close faster on the right property.
Cons
- Higher rates and fees than conventional loans, and a short term, often 6 to 12 months.
- Lenders usually want strong equity, often 20 to 30 percent or more, plus solid credit and income.
HELOC or home-equity loan
How it works: You borrow against your current home to fund part of your down payment. A HELOC is a revolving line, usually variable rate. A home-equity loan is a fixed or variable term loan.
Pros
- Flexible access to cash with potentially lower fees than some bridge loans.
- Useful if you plan to sell soon.
Cons
- Variable rates can raise payments. Lien position and debt-to-income rules can make approvals more complex when you also need a new mortgage.
Cash-out refinance
How it works: You refinance your current mortgage for a larger amount and use the cash for your new purchase.
Pros
- One loan with a predictable payment if fixed-rate.
- Can be useful if the rate and timing make sense for you.
Cons
- Closing costs apply and the rate may be higher than your current one.
- Subject to loan-to-value limits and underwriting.
Offer structures that smooth timing
Sale contingency
How it works: Your purchase contract depends on selling your current home within a set time.
Pros
- Protects you from carrying two mortgages.
Cons
- Weaker in competitive conditions. To improve acceptance, you may offer more earnest money, tighten timelines, or pair with a backup plan like a HELOC.
Leaseback or rent-back
How it works: After selling, you remain in the home as a renter for an agreed period, often 30 to 90 days.
Pros
- Lets you sell first while keeping your move timeline.
Cons
- Requires buyer agreement and clear terms for rent, liability, and insurance.
Extended closings and flexible possession
How it works: You negotiate longer timelines between contract and closing or delay possession to align both sides.
Pros
- Helps you avoid same-day juggling of two closings.
Cons
- Not always possible in a competitive market and depends on both parties’ flexibility.
Costs and lender criteria to review
Before you choose a path, talk with a lender and run the numbers.
- Debt-to-income: Underwriting includes all obligations. Two mortgages mean stricter debt ratios.
- Reserves: Many lenders want several months of payments in cash reserves, especially for dual mortgages or bridge financing.
- Equity thresholds: Bridge loans, HELOCs, and cash-out refinances typically require meaningful equity, often 20 to 30 percent or more.
- Appraisals and limits: Expect appraisals and loan-to-value caps. Some programs have seasoning rules.
- Rates and fees: Bridge and HELOC products often carry higher rates and origination costs than standard purchase loans.
Estimate total costs for buy-first scenarios by month:
- Mortgage payments on both homes, property taxes, insurance, HOA dues.
- Utilities, lawn and pool care, routine maintenance.
- Commuting or storage, if relevant.
- Bridge or HELOC fees, interest, and payoff costs.
- Selling costs such as commissions and closing fees, plus staging or repairs.
Consult your tax professional on capital gains rules for a primary residence and how your property tax basis may change after you move.
Decide: a quick checklist for Park Cities
Use these yes or no prompts to narrow your path:
- Do you have 20 to 30 percent or more equity in your current home? If yes, explore a bridge loan or HELOC. If no, selling first may be safer.
- Do you have 3 to 6 months of mortgage reserves beyond your down payment? If yes, buying first is more feasible.
- Is inventory tight at your target price in Highland Park or University Park right now? If yes, consider a non-contingent offer path.
- Do you have a hard deadline, such as a job start or lease end? If yes, prioritize a strategy that locks in possession timing, such as buy-first or sell-first with a leaseback.
- Is your risk tolerance low? If yes, sell first and use a leaseback or extended closing to smooth the move.
Example timelines
- Buy-first with a bridge loan: Preapprove for both the purchase and bridge. Make a non-contingent offer with flexible possession. After closing, prep and list your current home. Pay off the bridge at sale.
- Sell-first with a leaseback: List and negotiate a leaseback at contract. Close, stay as a tenant for 30 to 90 days while you search. Write a clean offer on your next home using your net proceeds.
Next steps to get ready
- Speak with a mortgage professional about preapproval, secondary-mortgage qualifications, and products like bridge loans, HELOCs, or cash-out refinances.
- Request a current market valuation of your home through a detailed CMA to estimate realistic net proceeds.
- Map inventory and timing with a Park Cities agent. Review days on market and recent sale-to-list results at your price point.
- Build a cash-flow worksheet. Compare buy-first vs sell-first costs for 3, 6, and 12 months.
- Plan contract language. If you need a contingency or leaseback, tighten timelines, increase earnest money if appropriate, and document possession dates in TREC forms.
Work with a construction-savvy Park Cities advisor
Moving up in Park Cities is about more than timing. It is also about evaluating build quality, renovation needs, and how presentation drives price. With hands-on construction experience and a boutique, process-driven approach, Donna guides you through product selection, pricing, staging, and negotiation so your buy and sell stay aligned.
Ready to map your path and run real numbers for your situation? Schedule a Free Consultation with Donna Hartley.
FAQs
Can I get a bridge loan in Park Cities?
- Yes. Regional banks and mortgage lenders offer them, subject to your equity, credit, income, and fees, with short terms that are often 6 to 12 months.
How much equity do I need to buy before I sell?
- Many lenders look for 20 to 30 percent or more equity for bridge or HELOC options, though requirements vary by lender and program.
Are sale contingencies accepted in Highland Park and University Park?
- They are less competitive when inventory is tight. Stronger terms like larger earnest money and shorter timelines can improve your odds.
What is a leaseback and how long does it last in Texas?
- It is an agreement where you remain as a tenant after closing, often 30 to 90 days. Rent, insurance, and liability should be clearly documented.
Will a HELOC affect my new mortgage approval?
- It can. Lien position and your total debt-to-income ratio matter, so discuss the sequence and timing with your lender early.
What carrying costs should I plan for if I buy first?
- Two mortgage payments, taxes, insurance, HOA dues, utilities, maintenance, and any bridge or HELOC fees until your current home sells.
