Should You Buy Before You Sell in San Rafael?

Worried about where you’ll live between selling your San Rafael home and buying the next one? You are not alone. In Marin’s tight, high-cost market, the buy-versus-sell timing can shape your stress level, your budget, and your negotiating power. This guide walks you through local market realities, your main timing options, what they cost, and how to decide. Let’s dive in.

San Rafael market at a glance

San Rafael sits in a supply-constrained part of Marin County where move-in ready homes often draw strong attention. In competitive periods, many sellers prefer offers without a home-sale contingency. That can make buying before you sell more attractive if you want to stand out.

Seasonality matters. Inventory and buyer activity often peak in spring and early summer, then slow in late fall and winter. You may face more competing buyers in spring, while fall and winter can bring fewer competing offers along with fewer listings.

Mortgage rate swings affect the cost of carrying two homes. When rates rise, fewer buyers qualify to carry dual payments comfortably. Also consider local hazard exposures. Parts of Marin face wildfire and hillside risks, and insurance premiums or underwriting requirements can be higher in certain micro-areas.

California escrows typically run 30 to 45 days, and longer timelines are possible when both sides agree. Post-closing occupancy, often called a rent-back, and bridge financing are accepted tools here, but the market’s competitiveness influences how flexible the other side will be.

Your core choice: buy first or sell first

Your decision hinges on equity, cash reserves, risk tolerance, and what is happening in your target San Rafael neighborhood. Buying first lets you avoid temporary housing and write stronger, non-contingent offers. Selling first removes the risk of double carrying costs and locks in your sale proceeds before you shop.

Both paths can work well in Marin. The key is to align your financing, insurance, and timeline so you do not feel squeezed if the market shifts or a closing runs long.

Option 1: Sell first, then buy

How it works

You list your home, close the sale, and move into short-term housing while you shop for your next place. This could be a rental, corporate housing, or staying with friends or family.

Pros

• Your next offer is non-contingent on selling, which can be stronger in competitive situations.
• You eliminate the risk of carrying two properties at once.
• You lock in your net proceeds before committing to a purchase.

Cons

• You may move twice and pay for temporary housing and storage.
• It can be harder to find the right replacement home during tight inventory windows.
• The logistics of timing school, work, and life can feel complex.

Financial impacts

• Short-term rental or lodging costs, plus moving and storage.
• Utilities, deposits, and setup fees for temporary housing.
• The upside of deploying your sale proceeds quickly once you buy.

Best for

• You want maximum negotiating strength as a buyer and can handle a short interim move.

Option 2: Buy before you sell

You can use a bridge loan, a home equity line of credit, cash, or a cash-out refinance to access your equity for the next purchase. Availability and terms vary by lender and your equity and credit profile, so get written quotes early.

Bridge loan

• How it works: A short-term loan, often 6 to 12 months, uses your current home’s equity to fund the new down payment, then is repaid when you sell.
• Pros: Lets you write non-contingent offers and avoid temporary housing.
• Cons and costs: Higher interest than a primary mortgage, origination fees, and the need to qualify for multiple loans in many cases.
• Risks: If your sale is delayed or the market softens, you may carry two mortgages longer than expected.

HELOC (home equity line of credit)

• How it works: You open a line of credit secured by your current home and draw funds for the new purchase.
• Pros: Flexible access to equity and interest charged only on what you draw.
• Cons and costs: Variable rate risk and draw limits based on combined loan-to-value.
• Risks: If rates rise or your sale timeline slips, costs can climb.

Cash or cash-out refinance

• How it works: Use cash on hand or refinance your current home to pull cash out for the next down payment, then sell after you close.
• Pros: Strong, non-contingent offers and a smoother move.
• Cons and costs: Refinance closing costs and the opportunity cost of using cash reserves.
• Risks: Carrying two homes if your timeline shifts.

Best for

• You have significant equity, stable finances, and comfort with short-term higher-cost financing.

Option 3: Buy with a home-sale contingency

How it works

You make an offer that is conditional on selling your current home within a set timeline. Contracts may require you to list and actively market your home during that period.

Pros

• Limits the risk of double carrying costs.
• Avoids bridge loan fees and complexity.

Cons

• In competitive segments of San Rafael, many sellers prefer non-contingent offers.
• Timelines and marketing requirements can be strict.

Best for

• A slower market segment, a unique listing with fewer bidders, or when the seller is open to flexibility.

Option 4: Use rent-back or extended escrow

Rent-back (post-closing occupancy)

• How it works: You close your sale, then rent the home back for a short time under a written occupancy agreement. Fees are typically a daily or monthly amount.
• Pros: You access sale proceeds and stay in place while you close on your purchase.
• Cons: The buyer takes on landlord-like responsibilities and may resist long rent-backs when competition is strong.
• Risk mitigation: Confirm insurance coverage during occupancy, set a security deposit, define exit conditions, and consider a holdback for potential damages.
• Best for: A brief on-site transition when you need a little more time to close on your next home.

Extended escrow

• How it works: You and the buyer agree to a longer closing period, often 60 to 90 days or more, to line up your replacement purchase.
• Pros: Can reduce or eliminate overlap if your purchase closes near your sale closing.
• Cons: Some buyers prefer shorter escrows, and both sides assume more timing risk.
• Best for: When both parties are flexible and willing to negotiate terms.

Estimate carrying costs in Marin

If you buy before you sell, estimate your monthly carrying cost so there are no surprises. In Marin County, factor in property taxes at roughly 1 percent of assessed value plus local assessments, along with the possibility of supplemental assessments soon after you buy. Insurance premiums can be higher in areas with wildfire or hillside exposure.

Key cost components to include:

• Mortgage payments on both homes if you carry two at once.
• Property taxes and homeowners insurance for each property.
• Private mortgage insurance if you put less than 20 percent down on either loan.
• HOA dues where applicable, plus utilities, landscaping, and routine maintenance.
• Bridge or HELOC interest and fees if used.
• Vacancy costs if one home is unoccupied while on the market.
• A buffer for unexpected expenses.

A simple way to model monthly incremental carry:

1. Add the new mortgage payment and your current mortgage payment if you will hold both for a time.
2. Add property taxes and insurance for the second property, and for both if applicable.
3. Add HOA dues, utilities, maintenance, and any vacancy-related costs.
4. Add bridge or HELOC interest and fees spread over your expected bridging period.
5. Add a conservative 5 to 10 percent buffer for the unexpected.

Timing your move in San Rafael

Get a full mortgage pre-approval before you write offers. If you may buy before you sell, speak with lenders early about bridge loans or a HELOC so they can verify income, assets, equity, and your ability to carry two loans if needed.

California escrows commonly run 30 to 45 days, and extended closings can be negotiated. Rate locks, appraisal timing, and insurance approvals need to align with your escrow length. Build in a cushion so one delay does not force a costly change to your plan.

If you decide to sell first, line up short-term housing early and price out storage and repeat moving costs. If you lean toward buying first, set a firm exit plan for any bridge product, including a target listing date and the maximum term you will carry both homes.

Decision checklist

• Equity: Do you have sufficient equity to qualify for a bridge loan or HELOC if needed?
• Cash reserves: Can you cover several months of double carrying costs plus moving and closing costs?
• Market competitiveness: Is your target San Rafael segment tight enough that a sales contingency will weaken your offer?
• Stress tolerance: Are you comfortable carrying two homes if your sale takes longer than expected?
• Insurance: Can you secure homeowner insurance for the next property, considering wildfire or hillside exposure?
• Timing needs: Do you need a flexible move date, for example around the school calendar? If yes, explore rent-back or extended escrow.
• Contingency appetite: Are you willing to write a contingent offer knowing it may be less competitive in peak seasons?

Local tips and red flags

• Neighborhood dynamics vary across San Rafael. Downtown flats, suburban single-family areas, and waterfront pockets can behave differently by season and buyer pool.
• Expect insurance due diligence to take time. Wildfire and earthquake considerations can affect premiums and availability.
• Watch for supplemental property tax assessments after you buy, since these can increase near-term bills.
• If a home will sit vacant, set up show-ready protocols and regular maintenance checks to avoid condition issues.

Putting it together

There is no one-size-fits-all answer to buying before you sell in San Rafael. The right move depends on your equity, liquidity, risk tolerance, and what is happening in your specific neighborhood segment. With thoughtful planning, you can reduce overlap risk, control carrying costs, and position your offer to win.

If you plan to sell first, a concierge-style prep and marketing plan can help you command top dollar with less friction. If you plan to buy first, clear financing terms, insurance approvals, and a defined exit plan are essential. When you want a local, calm sounding board to map your path, schedule a quick conversation with Jennifer Bowes.

FAQs

Is it smart to buy before selling in San Rafael right now?

• It depends on your equity, cash reserves, and the competitiveness of your target segment, since Marin often has tight inventory and non-contingent offers can have an edge.

How long is a typical escrow in California if I need more time?

• Escrows commonly run 30 to 45 days, and longer timelines are possible if both parties negotiate an extended escrow period.

What is a rent-back and how long can I stay after closing?

• A rent-back lets the seller remain in the home for a short, agreed period after closing under a written occupancy agreement with clear rent and move-out terms.

How do Marin property taxes affect carrying costs if I own two homes?

• Plan for about 1 percent of assessed value plus local assessments and remember you may receive a supplemental assessment shortly after purchase.

What insurance issues should I check if I buy before I sell?

• Review wildfire and hillside exposure, confirm homeowner insurance availability and estimated premiums early, and discuss any underwriting requirements with your insurer.

When should I get pre-approved if I may buy first using a bridge or HELOC?

• Get full pre-approval before making offers and ask lenders for specific bridge or HELOC terms so you understand payments, fees, and qualification.