What’s the Best Way to Buy a House Before You Sell Yours?
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Richard Haddad Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
Editor’s note: This post explains HomeLight’s Buy Before You Sell program and provides examples of similar services that help home sellers buy a house before selling their existing home. Programs can change; see company websites for plan details.
If you’re selling your home but also looking to purchase a new one, the timing of both transactions can feel nearly impossible to coordinate. If you’re relying on the equity in your current home to make a down payment on the new one, it may seem as if your only option is to sell, move out, and then find a third location to live while you shop for the new house.
But before you resign yourself to months of disorder and stress, there is a new solution that simplifies the entire process and takes much of the burden off your shoulders. In this post, we’ll share the benefits of a tool that is replacing the old way of making a move; the “Buy Before You Sell” program.
Yes, You Can Buy Before You Sell. Why Move Twice?
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
What is a real estate Buy Before You Sell program?
With today’s modern technology, there are real estate solution companies like HomeLight that have developed creative, convenient, integrated programs that streamline the process of buying and selling a house at the same time.
These “Buy Before You Sell” programs provide a bridge to help you successfully complete your move to a new home — significantly reducing anxiety and worries.
To put it simply, if you have equity in your current home, a Buy Before You Sell program provides remarkable convenience that is changing the real estate industry.
A recent HomeLight survey found that among repeat buyers, 49% use equity from their existing house to buy a new home. But juggling that equity the traditional way can be cumbersome when trying to time your sale and balance the demands of moving.
Companies like HomeLight and partner agents can help you move into your new home with speed and certainty — while helping you get the strongest possible offer for your old home.
For such an important life event, a Buy Before You Sell program makes it this easy:
Buy your new home before selling your old one.
Move one time and avoid paying for temporary housing.
Skip the hassle of showing your home while you, your family, or pets are still living in it.
How does HomeLight’s ‘Buy Before You Sell’ work?
A 3-step process puts you in control
Here’s how HomeLight’s Buy Before You Sell program works for home sellers:
- Apply in minutes with no commitment: Find out if your property is a good fit for the program and get your equity unlock amount approved in 24 hours or less. No commitment is required.
- Buy your dream home with confidence: Once you’re approved, you’ll have access to a portion of your equity in your current home. You’ll be able to submit a competitive offer with no home sale contingency at any time — regardless of how long it takes to find your dream home. Our near-instant Equity Unlock Calculator lets you estimate how much equity we can unlock from your current home.
- Sell your current home with peace of mind: After you move into your new home, you will list your unoccupied home on the market to attract the strongest offer possible. You’ll receive the remainder of your equity after the home sells.
What makes HomeLight ‘Buy Before You Sell’ different?
Unlock Equity: Unlock up to $2 million dollars in equity from your current home to cover your down payment, moving, closing costs, repairs, and more. It’s your choice. See our FAQ section below for Equity Unlock Amount details.
Make a competitive offer: We’ll remove your home sale contingency so you can make a competitive offer and save money — as sellers often value certainty over nabbing top dollar.
Sell for up to 10% more: After you move, list your current home unoccupied and potentially staged, which can lead to a higher selling price, according to HomeLight transaction data.
FAQs about HomeLight’s ‘Buy Before You Sell’ program
It’s free to get started and see how much equity you can unlock. If you decide to transact using the program, there is a fee of 2.4% of the departing residence home sale. (Program requirements and fees are subject to change, and minimums do apply. Click here for the most current details.)
The amount of equity you can unlock is determined using our proprietary algorithm, which takes into consideration an estimation of the home’s value, current market conditions, projected market risk, borrower financials, outstanding loans, and more. You’ll then be eligible to receive a loan to unlock a portion of the overall equity you have in your home upfront through HomeLight Home Loans, Inc., prior to selling the home — and will receive the remainder of your equity after the home sells, less transaction and program fees.
You can use your Equity Unlock Amount for more than a down payment on your new home. You can also use it for:
- Moving expenses
- Closing expenses
- Property repair
- And more
Not a problem! We consider all properties for the program regardless of days on market, and will adjust the Equity Unlock Amount according to your property’s risk profile.
HomeLight partners with top agents nationwide to make buying and selling a home simpler, more certain, and satisfying for all. If your current home doesn’t sell within 120 days of the closing of your new home, HomeLight will buy the property and continue to work with you to sell it. Any profits from the sale, after deducting HomeLight’s incurred costs, will be distributed to the client.
There is no catch! You are paying to use the program but the savings and gains created can outweigh the cost of the program. There’s never been an easier way to buy and sell at the same time.
HomeLight was founded in 2012 and has an accredited A+ rating with the Better Business Bureau. The company has earned a 4.8-star Google Review rating from past clients. Below is how customers Hunter W. and Angela B. of Sunland, California, described their experience with HomeLight’s Buy Before You Sell program:
“We not only had the advantage of moving into our new home before listing our old home, but also were able to sell for more than expected.”
(Their old home sold for $159,000 over asking price.)
As a real estate solutions company, HomeLight also offers other services for homebuyers and sellers nationwide, such as Agent Match to find the top-performing real estate agents in your market, and Simple Sale, a convenient way to receive a no-obligation, all-cash offer to sell your home in as little as 10 days.
What other companies provide Buy Before You Sell programs?
There are a number of other real estate companies that provide Buy Before You Sell programs in select states throughout the U.S. Let’s take a brief look at some examples.
Knock Home Swap
Knock’s Home Swap program assists homeowners with the entire buying and selling process, from helping clients find and finance a new home, to covering home prep costs so customers can sell their old house for the best price.
Clients pay a 2.0% contract fee based on the estimated list price of their old house. Buyers and sellers also pay traditional closing costs associated with a real estate transaction.
Knock currently serves customers in 20 states, including AZ, CA, CO, DC, FL, GA, IL, MD, MI, MN, NC, NJ, OH, OR, PA, SC, TN, TX, WA, and WI.
Orchard Move First
Formerly known as Perch, Orchard provides a program called Move First that lets clients buy and settle into their new homes before they sell their old houses. It presents this as the “modern way to buy” and tags the program as “magically convenient.”
You’ll pay a standard brokerage fee to sell your home. This is typically 6% but varies depending on the market. Additionally, you’ll pay the Move First program fee of 2.4%.
The Orchard Move First program is currently available to sellers in the metro areas of Atlanta, Austin, Dallas-Fort Worth, Denver, Houston, and San Antonio. They serve homebuying customers in the following states: AZ, CA, CO, FL, GA, KS, NC, OK, OR, PA, SC, TN, TX, and WA.
Flyhomes
Flyhomes is a real estate solutions company that helps clients buy a home with less stress using integrated mortgage and brokerage programs such as Flyhomes Cash Offers and Trade Up, which can allow their customers to buy before they sell.
Costs depend on the services you use. Flyhomes does not charge a sales agent commission, but clients will need to pay the buyer’s agent commission (typically 2.5%-3% of the home sale price), any applicable taxes, and the cost of any repairs if needed.
Flyhomes serves buyers and sellers in California, Oregon, Washington, Colorado, Texas, and Massachusetts.
Homeward
Homeward’s Buy Before You Sell program lets clients “Move now, sell later.” Homeward works to provide a bigger window to sell your house for the best price, along with an offer that gets you into your new home faster.
Homeward fees range from 0% to 2.4% of the property’s purchase price, depending on the buying scenario. In some cases, fees can be rolled into the new mortgage to reduce or avoid out-of-pocket expenses.
Homeward serves buyers and sellers in Arizona, Colorado, Florida, Oregon, Georgia, Washington, and, Texas.
Curious What Your Home Is Worth?
Get a near-instant real estate house price estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes.
Key takeaways
Benefits of HomeLight’s Buy Before You Sell program
- Unlock a portion of equity from your current home
- Make a strong offer on your next home, and save money with no home sale contingency
- Avoid renting and moving twice
- Maximize the sale price of your current home
As buyers navigate an increasingly challenging housing market, savvy homeowners are turning to “Buy Before You Sell” programs to simplify the process of buying a new home and selling their old one. These services allow you to easily apply your existing home equity toward a new purchase, giving you more time to sell and taking away much of the hassle of getting the timing right.
Take the uncertainty out of your next home purchase. Get started today with HomeLight Buy Before You Sell, and sell your current home with peace of mind.
Header Image Source: (alexraths / Unsplash)
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