Buy Before You Sell in St. Johns? A Practical Framework

Thinking about buying your next home in St. Johns before you sell your current one? You are not alone. Many move-up families and relocating service members want to secure the right home first, then handle the sale. The choice can be smart, but it comes with financing, timing, and risk questions. This guide gives you a simple framework to decide, plus practical tools to help you move with confidence. Let’s dive in.

Start with a quick gut check

Financial readiness

Before you consider buying first, take a hard look at your numbers.

• Equity: Do you have enough equity to fund a down payment through a HELOC, bridge loan, or cash-out refinance? If your equity is thin, buying first gets harder.
• Qualification: Will your lender approve a new mortgage while you still carry the current one? Some lenders count both payments, which can reduce your buying power.
• Reserves: Plan for down payment, closing costs, moving costs, and at least 1 to 3 months of combined housing expenses. If reserves are tight, selling first reduces stress.

Market conditions in St. Johns

Your best path depends on supply and demand today. In a competitive market, sellers prefer non-contingent offers, so buying first may be the edge you need. In a slower market, a home-sale contingency or selling first is often acceptable. Ask your agent for current MLS data on inventory, days on market, and sale-to-list trends before you choose a strategy.

Timing and family needs

If you want to move between school years or you have PCS orders or a firm start date, buying first can protect your timeline. Lease expirations and temporary housing availability matter too. The right plan is the one that aligns with the dates you cannot change.

Risk tolerance

Some families are comfortable carrying two mortgages for a short window, others are not. Be honest about your comfort with fees and interest on bridge tools, and know your backup plan if your current home takes longer to sell.

Financing paths to bridge the gap

Home-sale contingency

A home-sale contingency makes your purchase dependent on selling your current home. It avoids double payments and extra loans. The tradeoff is competitiveness. In hot segments of St. Johns, sellers may prefer offers without a sale contingency or may add a kick-out clause that lets them accept another offer unless you remove your contingency on short notice.

Bridge loan

A bridge loan is a short-term, interest-only loan that lets you buy your next home before you sell. You can write a non-contingent offer, which is attractive to sellers. Expect higher rates and fees, qualifying requirements, and a term of about 6 to 12 months. Ask local lenders about availability, collateral rules, and whether they will count both mortgages in your debt-to-income ratio.

HELOC or home equity loan

A HELOC lets you tap your current home’s equity for a down payment. It is often cheaper than a bridge loan and offers flexible draws. Approval depends on credit and combined loan-to-value limits. Remember that your equity remains tied to your old home until it sells, which adds some market risk.

Cash-out refinance

If you have substantial equity, a cash-out refinance can fund your down payment with one loan on your current home. It comes with closing costs and may raise your rate if your existing loan is very low. Timing matters, so speak with your lender early about seasoning rules and processing times.

Savings or gifts

Using savings or gifts avoids extra loan costs and complexity. Make sure you keep a healthy emergency reserve. Some programs have documentation or limits on gift funds, so confirm details with your lender.

VA, FHA, and jumbo considerations

VA loans can sometimes be used while you still own a home with a VA loan on it, depending on entitlement. FHA has specific rules for owning more than one FHA-financed property. Many St. Johns move-up buyers use jumbo financing, which typically requires higher reserves and strong credit. Ask your lender to map out exact rules and reserve requirements for your profile.

Contract tools that lower stress

Home-sale contingency with a kick-out clause

A sale contingency can work if you limit timelines and use a kick-out clause that gives the seller the right to accept another offer unless you remove your contingency within a set number of days. Shorter contingency windows and clear milestones make your offer more acceptable.

Rent-back or post-closing occupancy

With a rent-back, the seller of your new home stays for a short period after closing and pays an agreed rent. This helps you sync move-in dates and avoid temporary housing. Spell out rent, duration, security deposit, insurance responsibilities, maintenance, indemnity, extension options, and holdover rules. Many agreements run 7 to 60 days, depending on market norms.

Inspection and appraisal protections

Even if you buy first, keep standard inspection and appraisal contingencies unless you have a clear reason to waive them. In competitive settings, some buyers offer appraisal gap coverage that commits to cover a portion of any shortfall if the appraisal comes in low. Only commit to a gap you can comfortably fund.

Earnest money strategy

Higher earnest money, or making a portion non-refundable after agreed milestones, can make your offer stand out. Balance this with your risk tolerance and ensure the release triggers are clear.

Local timing and risk controls in St. Johns

Seasonality and school-year planning

Spring and early summer often bring more listings and buyers, and many families aim for summer closings to avoid disrupting the school calendar. Build in time for marketing, contract-to-close, and a possible rent-back so your move lines up with your preferred window.

Insurance and hurricane readiness

In Florida, flood and wind coverage can materially affect your monthly costs and timing. Check the property’s flood zone early and request insurance quotes as soon as you are under contract. Wind mitigation reports and roof documentation can influence premiums and underwriting. Start the insurance process early since availability and requirements can shift.

Title and closing norms

Florida typically uses title companies or attorneys to close. Ask your agent and title team to coordinate both transactions, wire timelines, and any occupancy agreements. Using the same title company for both sides can simplify funds flow on the day you close.

A simple playbook for move-up buyers

• Substantial equity and lender approval for a bridge or HELOC, and the market is competitive: Buying first is viable. Make a strong non-contingent offer, keep inspection protections, and plan a rent-back if needed.
• Limited equity or you prefer lower financial exposure: Sell first, then buy. Consider temporary housing or negotiate a delayed closing on your purchase.
• Moderate competition and you qualify comfortably: Write a contingent offer with a kick-out clause, a strong earnest money deposit, and a shorter contingency window.

Sample move timeline

1. Weeks 1 to 2: Meet your agent and lender, get a lender approval that considers two mortgages, and request a preliminary market valuation of your current home.
2. Weeks 2 to 4: Prep your home for sale while touring new inventory. Pre-clear insurance for target neighborhoods and confirm flood and wind considerations.
3. Weeks 4 to 6: Make your offer on the new home using the right tools for your situation, such as a bridge loan or a contingency with a kick-out clause.
4. Weeks 6 to 10: List your current home. Coordinate contract timelines, inspection windows, and appraisal scheduling for both deals.
5. Weeks 10 to 12+: Close on your purchase, then your sale. Use a rent-back or flexible occupancy agreement to smooth the move.
6. Post-close: Transfer utilities, finalize homestead exemption details with your tax advisor, and complete any punch-list items from inspections.

What to ask your lender

• Will you count both mortgages in my qualification, and if so, what is my maximum purchase price?
• Do you offer bridge loans or HELOCs, and what combined loan-to-value will you allow?
• What are the current rates, fees, and reserve requirements for each option?
• Can I lock my rate with a float-down option, and how long is the lock period?
• What documentation do you need for proof of funds or gift funds?

What to line up with your agent and title company

• A current market valuation and estimated net sheet for your sale.
• An offer strategy that fits today’s conditions, including contingency language, appraisal gap strategy, and earnest money amounts.
• A draft rent-back or occupancy agreement with clear rent, duration, deposits, and insurance terms.
• A coordinated closing timeline for both transactions and mover scheduling.
• Early insurance quotes and flood zone checks for any home you are considering.

Common mistakes to avoid

• Shopping for your next home before you confirm lender approval that accounts for two mortgages.
• Ignoring insurance costs, flood zones, or wind mitigation factors until late in the process.
• Writing a contingency with vague timelines or unclear kick-out language.
• Overcommitting on non-refundable deposits without a realistic sale timeline.
• Assuming you can move during peak season without locking movers or lining up a rent-back.

Legal and tax items to discuss with pros

Florida homestead rules and portability can influence your property tax planning after you move. Federal capital gains exclusions for primary residences may apply, depending on your timing and use. If you plan to use a rent-back, make sure liability and insurance terms are clear. Speak with your tax advisor, the county property appraiser, and your title or legal team for guidance specific to your situation.

Next steps

If you are weighing buy-first versus sell-first in St. Johns, you do not have to decide alone. A clear plan, the right financing, and tight contract language will protect your move and your budget. Schedule a Strategy Session with Traci Crawford to review your timeline, lender options, and a local game plan that fits your family.

FAQs

Is buying before selling a good idea in St. Johns?

• It depends on your equity, loan qualification, reserves, and how competitive the market is today; confirm current MLS trends with your agent and run numbers with your lender before choosing a path.

How does a rent-back work in Florida?

• The buyer closes and becomes owner while the seller stays as a short-term tenant with a written agreement that sets rent, duration, deposits, insurance, maintenance, indemnity, and holdover rules.

What if my home does not sell before my bridge loan matures?

• Have a backup plan, such as converting to a HELOC, adjusting price early, or arranging temporary rental; talk with your lender about extension options and reserve targets before you commit.

How does hurricane season impact my closing?

• Insurance timing and logistics can be affected, so get quotes early, confirm flood zones, and coordinate inspections and movers well ahead of peak weather periods.

Can I use a VA loan to buy before I sell?

• In some cases you can use remaining entitlement, but rules are specific; ask your lender to calculate entitlement, reserves, and whether both mortgages will be counted.

What is an appraisal gap and should I offer one?

• An appraisal gap clause commits you to cover part of any shortfall if the appraisal comes in low; only offer what you can comfortably fund and pair it with strong inspection protections.