Buy First or Sell First in Hampton? Contingency Options

Thinking about moving within Hampton and wondering if you should buy first or sell first? You are not alone. The right sequence can protect your budget, lower stress, and help you land the home you want in Towson or nearby neighborhoods. In this guide, you will see practical contingency options, rent-back strategies, financing tools, and step-by-step timelines you can actually use. Let’s dive in.

Hampton market snapshot

Use these live figures when you plan your timeline and contingencies. Update these with current local stats before you publish or decide.

• Median sale price, Hampton: [Insert current figure]
• Median days on market, Hampton: [Insert current figure]
• Median days on market, Towson: [Insert current figure]
• Months of inventory, Hampton: [Insert current figure]
• Sell-through rate, last 30/60/90 days: [Insert 30-day %] / [Insert 60-day %] / [Insert 90-day %]

To verify numbers, reference local sources such as Bright MLS for Hampton and Towson micro-market stats and Maryland REALTORS market briefs.

Option 1: Sell first

Selling first means you list your Hampton home, accept an offer, and close before you purchase your next home.

How it works

• List, market, and negotiate your sale.
• Close on your sale and use net proceeds for your down payment and closing costs on your next purchase.
• If you cannot line up closings, secure a short-term rental or a post-settlement occupancy (rent-back) from the buyer.

Pros

• Lower financing risk since you avoid carrying two mortgages.
• Stronger negotiating position when buying, since your funds are in hand.
• Buyers for your home do not need to accept your sale contingency.

Cons

• You may need temporary housing and storage if closings do not align.
• If Towson inventory is tight, you could feel rushed to pick a new home.

Local tip

• If Hampton days on market are short, selling first can be smooth. If Towson has very low inventory in your target segment, negotiate a rent-back so you can shop without pressure.

Option 2: Buy first

Buying first means you secure your Towson home before selling in Hampton. You finance the purchase with cash, a HELOC, a bridge loan, or a lender-approved structure that fits your budget.

How it works

• Get a lender preapproval that covers temporary two-mortgage exposure or secure a bridge solution.
• Make a non-contingent offer on the home you want.
• List and sell your Hampton home, then pay down or pay off your bridge funding with sale proceeds.

Pros

• You can act fast in a competitive Towson submarket.
• You avoid the disadvantage of a home sale contingency in multiple-offer situations.

Cons

• You could carry two mortgages for a period.
• Bridge loans and HELOCs add short-term interest and fees.

Local tip

• In low DOM areas, buy-first can be the only way to win. Price your Hampton listing right, and launch it quickly so you minimize dual-carry time.

Option 3: Make a home sale contingency

A home sale contingency lets you write an offer that depends on selling your current home. Many sellers include a kick-out clause so they can keep marketing the property.

Mechanics

• Common home sale contingency window: 30 to 60 days, adjusted to local DOM.
• Kick-out clause notice: often 48 to 72 hours to remove your contingency if the seller receives another offer.
• You typically list your home immediately after your offer is accepted.

Pros

• You can secure a property without immediate dual-carry risk.
• You keep flexibility if your home sale takes longer.

Cons

• Less competitive if the market is moving fast.
• If a kick-out is triggered, you could be pressed to remove the contingency before you are ready.

Local tip

• When median DOM is under about 10 days, most sellers resist sale contingencies. If you use one, keep the window short and pair it with strong terms like a larger earnest deposit.

Use a rent-back to connect moves

A post-settlement occupancy agreement lets the seller stay in the home after closing for an agreed period.

What to negotiate

• Length, commonly 1 to 60 days.
• Per diem rent, often based on market rent or a fixed daily rate.
• Security deposit or escrow holdback and clear move-out date.
• Responsibility for utilities, maintenance, and proof of insurance.

Why it helps

• If you sell first, a rent-back can remove the need for storage or a short-term lease.
• If you buy first, offering a rent-back may attract more sellers to your offer.

Confirm that the lender and title company allow post-closing occupancy. Local title professionals can explain standard language used in Baltimore County.

Financing tools that bridge the gap

Rates and product terms change often. Check market context through the Freddie Mac Primary Mortgage Market Survey and request quotes from local lenders before you commit.

HELOC (home equity line of credit)

• Flexible, often lower rates than a bridge loan.
• Requires enough equity and time to open, usually 2 to 6 weeks.
• Variable rate risk may apply.

Bridge loan

• Short-term loan designed to close quickly so you can buy first.
• Higher rates and fees than a standard mortgage.
• Typically repaid with sale proceeds or a refinance.

Cash-out refinance

• Pulls equity from your current home for a down payment.
• Takes longer to close and adds closing costs.

Home equity loan or personal loan

• Fixed payments, smaller limits than HELOCs.
• Useful if you want predictable payments and have modest equity needs.

Seller-assisted options

• Extended closing date, a credit at settlement, or a temporary second position loan.
• Less common in fast markets and must be documented correctly with the title company.

Timeline playbooks

Use these as starting points. Adjust lengths to your lender’s timing and the current DOM in Hampton and Towson.

Playbook A: Sell first (lower financing risk)

• Week 0: List your Hampton home and start touring Towson homes.
• Week 1 to 4: Accept an offer. Negotiate a 30 to 60 day rent-back if needed.
• Week 3 to 7: Go under contract on your purchase. Use proceeds or short-term funds.
• Week 6 to 10: Close your sale, then close your purchase during the rent-back window.

Key watch-outs

• Without a rent-back, budget for interim housing and storage.
• Build in cushion for underwriting and title clearance.

Playbook B: Buy first with bridge or HELOC

• Week 0: Get preapproved for your first mortgage and bridge or HELOC.
• Week 1 to 4: Win the Towson home with a non-contingent offer. Close with bridge funds.
• Week 2 to 8+: Launch your Hampton listing and sell to repay the bridge or HELOC.

Key watch-outs

• Plan for two-mortgage and bridge interest costs until your sale closes.
• Price and present your Hampton home to minimize days on market.

Playbook C: Contingent with kick-out

• Week 0: Write a sale-contingent offer with a 30 to 45 day window and a 48-hour kick-out.
• Week 1 to X: Market your Hampton home aggressively.
• If the seller gets a backup offer: decide whether to remove the contingency or release the home.

Key watch-outs

• Be ready to pivot to bridge funding if a kick-out triggers early.
• Set a short, realistic timeline based on current DOM.

Playbook D: Sell first with rent-back

• Week 0: Accept an offer on your Hampton home with a 30 to 60 day post-settlement occupancy.
• Week 3 to 6: Secure and close on your Towson purchase during the occupancy period.

Key watch-outs

• Confirm lender and insurer acceptance of the occupancy agreement.
• Spell out access, maintenance, and default remedies in writing.

What the numbers could look like

Use this table to model cash flow. Replace placeholders with your figures from Bright MLS comps, your lender’s estimates, and title quotes.

Model three DOM scenarios for your Hampton sale:

• 14 days to sell: interest and dual-carry for about 1 to 2 months.
• 45 days to sell: interest and dual-carry for about 2 to 3 months.
• 90 days to sell: interest and dual-carry for about 3 to 5 months.

This sensitivity check shows how extra days on market change your total cost and your need for backup funds.

Maryland contract and closing notes

• Use standard Maryland and Bright MLS forms with clear calendar-day deadlines.
• Common timelines: inspection in 7 to 10 business days, financing in 21 to 30 days, appraisal within the financing window, home sale contingency in 30 to 60 days, and kick-out responses in 24 to 72 hours.
• Post-closing occupancy must be in a written agreement that covers rent, security deposit, insurance, utilities, maintenance, and default remedies. Confirm acceptance with your lender and title company in advance.
• If you use seller financing or a temporary second, make sure the lien is recorded properly through the title company.

For statewide context and monthly trends, review the latest Maryland REALTORS market briefs. Lender rate context is available through the Freddie Mac PMMS.

Quick risk matrix

• Best if you want minimal financing risk: sell first with a short rent-back.
• Best if you must secure a specific Towson property: buy first with a bridge or HELOC and a clear exit plan.
• Best to avoid dual-carry while staying in the game: sale contingency with a short window, strong preapproval, and incentives for the seller.

Negotiation boosts for contingent offers

• Shorten your sale contingency window.
• Increase earnest money and show strong financing.
• Offer a rent-back or flexible closing date to match the seller’s needs.
• Provide credits that help the seller’s closing timeline.

Your next steps

• Get a purchase preapproval that states the lender’s stance on temporary two-mortgage exposure or using a HELOC for the down payment.
• If considering buy-first, obtain a bridge or HELOC prequalification now.
• Confirm post-closing occupancy language with your title company before you negotiate a rent-back.
• Pull current Hampton and Towson DOM and price data from Bright MLS and pair it with statewide context from Maryland REALTORS.

If you want a clear plan tailored to your home, timeline, and equity, connect with The Hofmann Home Group for a calm strategy session. Ask for a free pricing review or tap our turnkey listing prep and staging. Ready to move? Get My Home Valuation.

FAQs

What is a home sale contingency in Maryland?

• It is contract language that lets you buy a home only if your current home sells within a set period, often 30 to 60 days, sometimes with a 48 to 72 hour kick-out.

How does a rent-back work in Baltimore County?

• After closing, the seller stays in the home for an agreed time, pays a daily or monthly rent, provides insurance, and follows written terms for access, utilities, and move-out.

Is it safer to buy first or sell first in a fast market?

• Selling first with a rent-back usually lowers financing risk, while buying first may be necessary to win in low DOM areas but adds dual-carry and bridge costs.

How long do bridge loans and HELOCs take?

• Many HELOCs and bridge loans can close within a few weeks, but timing depends on lender underwriting and documentation, so start the process early.

What timeline should I expect from contract to close?

• Financing approvals often take 21 to 30 days with appraisal inside that window, plus time for inspections, title work, and any required occupancy or addendum documents.