Buying your next home in Kirkland while you still own your current place can feel like threading a needle. You want to compete for the right home without taking on unnecessary risk. The two most common paths are a bridge loan or a sale-contingent offer, and each comes with trade-offs in cost, timing, and competitiveness. In this guide, you’ll learn how both options work in Washington, what local sellers tend to prioritize, and how to choose the approach that fits your situation. Let’s dive in.
What is a bridge loan?
A bridge loan is short-term financing that lets you buy your next home before you sell your current one. The loan is typically secured by the equity in your current home, often as a second mortgage. Terms are usually measured in months, commonly 3 to 12 months, and many products offer interest-only payments during the bridge period.
Lenders in the Seattle and Eastside markets often offer some form of bridge or temporary second mortgage product. You’ll usually repay the bridge loan when your current home sells, either by paying it off directly from the sale proceeds or by refinancing into a permanent mortgage on the new home. Underwriting looks at your ability to carry two housing payments for a short period, so you’ll need solid documentation and sufficient equity.
Bridge loan pros in Kirkland
- Stronger offers. A bridge loan often lets you submit a non-contingent offer, which can rank higher with sellers who value certainty and speed.
- Better timing control. You can buy first and move once, which simplifies logistics.
- Negotiation advantage. In tight inventory or multiple-offer situations, removing a sale contingency may help your offer stand out.
Bridge loan costs and risks
- Higher borrowing costs. Expect a higher interest rate than a standard first mortgage, plus origination and closing fees. There may be appraisal, title, and other transaction costs.
- Carrying costs. You may carry two mortgages for a period, along with taxes, insurance, utilities, and upkeep on the home you’re selling.
- Market risk. If your current home takes longer to sell, costs can build. If values decline, available equity may shrink.
- Qualification. Lenders will analyze your debt-to-income and reserves to confirm you can carry both payments during the bridge.
Coordinating with your escrow and title team is important in King County. If you plan a simultaneous close, your agent and escrow officer will help manage payoff timing and lien releases so funds move cleanly from the sale to the purchase.
What is a contingent offer?
A sale-contingent offer is a purchase agreement that depends on you selling and closing on your current home within a set timeframe. The contract can include deadlines for listing your home, accepting an offer, and closing. Many agreements include a “kick-out” or escape clause that allows the seller to keep marketing the property; if the seller receives another offer, you get a short window to remove your contingency or step aside.
Washington contract context
In Washington, brokers commonly use standardized forms and add clear contingency timelines, kick-out language, and performance deadlines. Exact terms must be written into the contract. If a stronger offer appears, sellers may require you to remove the contingency within a defined period. Work closely with your agent, and consult an attorney if you need guidance on enforceability or unusual terms.
Contingent offer pros
- Lower financial risk. You avoid carrying two mortgages or taking on short-term debt.
- Lower upfront cost. There is no new loan origination for a bridge product.
- Simpler close. With one sale feeding one purchase, the closing path can be more straightforward.
Contingent offer trade-offs in Kirkland
- Less competitive in hot segments. In multiple-offer situations, sellers often favor offers without a sale contingency or with faster closings.
- Potential kick-out. You might lose the home if another buyer submits a stronger, non-contingent offer.
- Pressure on timelines. You may need to price your home aggressively and meet tight deadlines to keep your purchase on track.
Bridge vs contingent: which fits your move?
Your choice depends on your equity, risk tolerance, and the current competition in your target neighborhood. Kirkland often sees high demand and low inventory, especially for well-priced single-family homes. When supply is tight and sellers prioritize certainty, a bridge loan can materially improve your position. When conditions loosen and days on market rise, a sale contingency can be more acceptable.
Consider these variables:
- Market competitiveness. In a multiple-offer environment, a non-contingent offer is more compelling. In a balanced market, a properly structured contingent offer may work.
- Available equity. Substantial equity makes a bridge loan easier to qualify for and less risky.
- Financial capacity. If you can carry two payments and cover short-term costs, a bridge can be a useful tool. If not, a contingency may be safer.
- Timeline flexibility. If you can wait to find the right fit or want to avoid short-term debt, a contingency may fit better.
- Total cost comparison. Weigh bridge loan interest, fees, and carrying costs against the risk of losing the home you want and possibly paying more later.
Practical scenarios
- Tight market, strong equity, need to act fast: A bridge loan can help you write a clean offer and close quickly.
- Limited equity or cash reserves: A contingent offer, or an alternative like a HELOC, may reduce financial strain.
- Your current home is already under contract: A short contingency period with proof of progress may be acceptable to a seller.
Costs and timelines at a glance
While exact numbers depend on your lender and the market week by week, here’s how timing usually plays out:
Bridge loans:
- Terms commonly run 3 to 12 months, with many products offering interest-only payments.
- Expect higher rates and origination fees than a standard mortgage, plus appraisal and title charges.
- You repay when your current home sells. Coordinating a same-day sale and purchase is possible with careful escrow planning.
Contingent offers:
- Contracts often set deadlines for listing, accepting an offer, and closing on your current home.
- Kick-out clauses are common. If the seller receives another offer, you may have 48 to 72 hours to remove your contingency.
- You’ll want to know average days on market and typical closing timelines for your neighborhood. Ask your agent for current Northwest Multiple Listing Service data for Kirkland.
Washington forms and local practices
In Washington, standardized forms are used for purchase and sale contracts, and contingency language must be explicit. Your agent can structure deadlines, kick-out provisions, and removal periods that align with your goals. Sellers often request higher earnest money, shorter contingency windows, or a kick-out to reduce risk. It is common practice for buyers to provide proof that their home is listed or already under contract to help sellers assess risk.
Local title and escrow companies in King County routinely handle simultaneous closings and lien payoffs. Ask your escrow officer how they prefer to structure timing so your sale proceeds can fund your purchase without delays.
Smart alternatives and hybrids
- HELOC or home equity loan. Using a line of credit for your down payment can be less expensive than a dedicated bridge loan, depending on your bank and credit profile.
- Cash-out refinance. If your current rate and balance make sense, refinancing to pull equity can fund your next purchase. Compare closing costs and timing against a bridge loan.
- Seller rent-back/post-closing occupancy. If your buyer allows you to stay for a short period after closing, you can use the proceeds from your sale to purchase your next home, then move once.
- Contingent offer with stronger terms. Improve your position with higher earnest money, tight contingency windows, a kick-out clause, and proof of listing or a pending sale.
- Backup offer. In a hot market, submitting a backup contingent offer can secure your place in line if the primary offer falls through.
- 401(k) loan or personal loan. Possible, but these carry separate risks and are rarely the first choice.
Buyer prep: bridge loan checklist
Ask lenders:
- What bridge or temporary second products do you offer, and what are the typical terms and fees?
- What loan-to-value limits apply, and do you require cash reserves?
- How do you underwrite the ability to carry two mortgages, and what documentation is needed?
- Are payments interest-only? Any prepayment penalties?
- How is payoff handled at sale, and how fast can you fund?
Coordinate with your agent and escrow:
- Confirm timelines for appraisal, title review, and funding.
- Plan for a simultaneous close if needed, and identify any steps that could cause delays.
Buyer prep: contingent offer checklist
Work with your agent to:
- Draft clear contingency timelines for listing, accepting an offer, and closing on your current home.
- Set acceptable kick-out terms and a realistic removal period.
- Provide evidence of progress, such as proof of listing, pre-inspection on your home, or a pending sale.
Prepare documentation:
- Comparable sales, a broker price opinion, and proof of funds for earnest money.
- A plan for pricing and marketing your current home to meet timelines.
Seller prep: evaluating contingent offers
- Review the buyer’s status: Is their home listed? Do they already have an accepted offer? What is the buyer’s proposed contingency window?
- Consider requesting higher earnest money, shorter timelines, or a kick-out clause to manage risk.
- Coordinate with your agent and escrow to understand how overlapping escrows would be handled if timing is tight.
Local move-up strategy tips
- Get product-specific pre-approval. If considering a bridge loan or HELOC, obtain pre-approval for that exact product, not just a standard mortgage.
- Build a time buffer. Appraisals, inspections, and title items can delay closing. Add cushion to your timelines.
- Know the current data. Ask your agent for up-to-date Northwest Multiple Listing Service stats on inventory, median price, and days on market in your Kirkland neighborhood.
- Keep reserves. If you bridge, maintain several months of payments as a safety margin.
- Coordinate early. Align your listing plan, purchase search, lender timelines, and escrow steps before you write an offer.
Get guidance tailored to Kirkland
Every move has trade-offs. In Kirkland, the right choice between a bridge loan and a contingent offer depends on your equity, comfort with short-term costs, and how competitive your target neighborhood is today. If you want a calm, step-by-step plan for your move, reach out to the Christophilis Team for a friendly consult. We’ll walk you through options, line up the right partners, and position your offer with confidence.
FAQs
What is a bridge loan and how does it work in Kirkland?
- A bridge loan is a short-term loan secured by your current home’s equity that helps you buy before you sell, usually with interest-only payments and payoff when your home closes.
What is a sale-contingent offer in Washington real estate?
- It is a purchase contract that depends on you selling and closing on your current home within agreed timelines, often with a kick-out clause allowing the seller to accept another offer.
Are contingent offers competitive in Kirkland’s market?
- In tight, multiple-offer situations, sellers typically prefer offers without sale contingencies; when inventory loosens, well-structured contingent offers can be more acceptable.
What costs come with a bridge loan?
- Expect a higher interest rate than a standard mortgage, origination and closing fees, possible appraisal and title costs, and carrying two housing payments until your home sells.
What alternatives can replace a bridge loan?
- Common options include a HELOC or home equity loan, a cash-out refinance, a seller rent-back, a stronger contingent offer with a kick-out clause, or a backup offer.
