How to Buy a House Before You Sell Yours: 7 Possible Solutions

Buy before you sell companies | Other alternatives | FAQs

Needing to buy a home before you sell your current one is a common problem. Timing the sale of your old home with the purchase of a new one only gets more complicated in a competitive market where homes sell quickly and often for more than the asking price.

Fortunately, there are a number of buy before you sell companies and other solutions that can help. These services are for people who don't have a lot of cash on hand and are relying on the value of their current home to purchase the next one.

The downside is that these companies often charge hefty fees and may not be available in your area. So, you may want to explore other options, too, such as selling to a cash buyer or including contingencies in your offer.

Ultimately, the best answer for how to buy a house before selling yours will depend on your priorities, budget, and timeline.  

Why buy before you sell?

Chances are, your home is your most valuable asset, even if you still owe a little bit on the mortgage. A buy-before-you-sell program can help you unlock the value in your current home to make an offer on a new one. Even better, you can avoid some of these situations that make buying and selling complicated.

• No equity available. Most people don’t have enough cash on hand to simply buy a new house before selling their old one, meaning you could miss out on your dream home.
• Double housing payments. Without some type of assistance, buying before you sell could make you responsible for two housing payments: the mortgage on your current home and your new one.
• Moving twice. If your home sells before you find a new one, you’ll have to first move into a temporary living space and then again into the house you eventually purchase.
• Hard to secure financing. Without the home sale proceeds to consider, your lender may not approve you to take on another mortgage.
• Home value may drop. The housing market can shift quickly, so your home may not sell for as much as you anticipated, impacting how much you can afford for a new one.

“It’s a timing game, and most sellers don’t realize how tight that window can be until they’re in it,” said Joel Efosa, a real estate investor and CEO of Fire Cash Buyer. “You’re trying to get top dollar for your current home while making competitive offers on a new one. The biggest challenge is negotiating both transactions without being left temporarily homeless or having to carry two mortgages.”

How buy before you sell programs works

A buy-before-you-sell program provides you with a bridge loan — a short-term loan backed by the value of your current home — so you can make a strong offer BEFORE your old house sells.

Most companies will also allow you to make this offer in cash, giving you an advantage over competing offers. That’s because a cash offer gives the seller a fast and easy way to close on the new home without any strings attached.

In some cases, a buy-before-you-sell program may offer you a cash option that unlocks a larger portion of your equity upfront. You can then list your home for additional upside, meaning you get the difference between the cash loan and the amount your house sells for.

In addition to the bridge loan, some buy-before-you-sell companies, such as Flyhomes, Homeward, and Orchard, give you a guaranteed backup offer in case your home doesn’t sell within a set time. This can provide some peace of mind to those with challenging properties, like those that need repairs.

Once your offer on the new home is accepted, you’ll get a traditional mortgage (through the trade-in company or on your own, depending on the service). When your old house sells, the company takes the proceeds to pay off the bridge loan.

Top buy before you sell programs

*These fees may be lowered if you choose the company for your mortgage lender.

Knock

Program fee: 2.25% + $1,850 in loan origination fees

Average customer rating: 4.8/5 (905 reviews) 4.81/5 (954 reviews)

Availability: Nationwide availability to purchase homes, but sellers can only list in 26 states[1]: AL, AZ, CA, CO, DC, FL, GA, IL, IN, KS, KY, MD, MI, MN, NC, NE, NH, NJ, OH, OK, OR, PA, SC, TN, WA, WI 

With the Knock Bridge Loan (formerly called Knock Home Swap), Knock fronts you a portion of your home equity (up to $500,000) to buy a new house before selling your current one. This is an interest-free loan for up to 6 months and includes a guaranteed backup offer in case your home doesn’t sell within that time.

The loan can be used to cover the down payment on a new house, up to 6 months of mortgage payments on your current home, moving expenses, or Knock’s fees. You can also get up to $35,000 to make minor repairs as you prepare your current home for listing.

Knock’s Bridge Loan is good if:

• You’re relying on your home sale to fund the down payment for your new house.
• You need extra funds to fix up your house before listing it.
• You’re buying in a hot market and need to make the strongest possible offer.
• You want to avoid living in the home as you’re making repairs or trying to sell it.

Knock lets you use your own realtor, which means you can negotiate a lower commission fee to save money. However, homes in poor condition may not qualify, and the backup offer is only about 80% of the fair market value.

Homeward

• Program fee: 3.5%
• Average customer rating: 4.51/5 (1,280 reviews) 4.47/5 (1,335 reviews)
• Availability: AZ, CO, FL, GA, OR, TX, WA 

Homeward has three options for home sellers:

• Buy Before You Sell: Homeward purchases your new home for you. You move in, list your old house, then pay Homeward back with the proceeds.
• Make a Cash Offer: Homeward backs your new home purchase with cash. You can close with traditional funding or let Homeward buy it on your behalf, in which case you would pay the company rent until you can secure financing.
• Sell to Homeward: Sell your home directly to Homeward for a cash offer of up to 80% of its value. Homeward then sells your home, and you recoup the upside (after realtor commissions and program fees).

Homeward’s Buy Before You Sell program lets you work with your own agent and lender. If you choose Homeward Mortgage, you can get a discount on the company’s program fees.

This convenience comes at a cost, though. The Buy Before You Sell program has a 2.4% fee plus carrying costs, and sellers must still pay realtor commissions and closing costs. Homeward also expects your current house to be ready to list in just 14 days — a tight turnaround that may be inconvenient for some sellers.

Homeward also has much more limited availability than similar companies.

HomeLight

• Program fee: 2.4%
• Average customer rating: No verified 3rd-party reviews No verified 3rd-party reviews
• Availability: Nationwide

HomeLight’s Buy Before You Sell program lets you use a portion of your current home equity to submit a strong, non-contingent offer on a new home. The company then partners you with an agent to list and market your previous house over the next 120 days.

You can also use your home’s equity to pay moving expenses, closing costs, and repair costs.

If your home doesn’t sell, HomeLight will buy it for a predetermined amount and continue to try to sell it. You keep the profits from the sale minus HomeLight’s fees. If you don’t use HomeLight’s Closing Services on one of the transactions, you’ll be charged an additional $1,500 fee.

While HomeLight has a vast network of real estate agents, it doesn’t require agents to meet any specific performance criteria. So, the realtor’s quality may vary. You also have only 21 days to prep your current property to be listed.

Orchard

• Program fee: 2.4% + 6% brokerage fee
• Average customer rating: 4.36/5 (744 reviews) 4.36/5 (746 reviews)
• Availability: Major metros in AZ, CA, CO, GA, TN, TX, WA 

Orchard also provides an equity advance through its Move First program, which you can use for a down payment, closing costs, moving expenses, or home repairs. You can also use the Offer Boost option to turn your offer into all cash.

If your home doesn’t sell within 120 days, Orchard will purchase it for an agreed-upon amount. The company will then continue trying to sell your house, and you’ll receive the sale proceeds minus Orchard’s costs.

Move First can be a good option if you need to sell quickly in a hot market. But the fees are pricier than other options, and you must use an Orchard-assigned agent. According to company reviews, agent performance can vary. Also, if you use the Offer Boost option, you’ll have to pay $50–150 per day in rent when you move into your new home.

What’s more, not everyone will qualify for the Move First program. You must have:

• A minimum credit score of 620
• A single-family residence valued between $150,000 and $2 million
• A home not currently listed for sale on the MLS

Flyhomes

• Program fee: Up to 2.5% in loan origination fees + 6% brokerage fee
• Average customer rating: 4.84/5 (2,007 reviews) 4.36/5 (746 reviews)
• Availability: CA, CO, MA, OR, TX, WA 

Flyhomes is another good buy-before-you-sell option. It gives you money upfront via a short-term loan so you can make a cash offer on a new house, which strengthens your negotiating power.

Once you move, you’ll work with an agent to sell your old home. For an added fee, Flyhomes will also give you a guaranteed backup offer in case your house doesn’t sell within 120 days. You then pay back the loan using a traditional mortgage.

Flyhomes has an in-house mortgage department and real estate agents, which can be a huge convenience for sellers. But this can keep you from shopping around for the best interest rates and realtor fees. Also, you don’t get to choose your agent.

Flyhomes doesn’t disclose its fee structure on its website, so it takes some legwork to uncover how much its program costs. The fees can add up quickly. In addition to the loan and brokerage fees, you’ll also have to pay back the short-term loan plus 9.99% interest. The guaranteed backup offer will cost you another $2,500.

UpEquity

• Program fee: 2% in loan origination fees + undisclosed convenience fee
• Average customer rating: 4.65/5 (291 reviews)  4.45/5 (315 reviews)
• Availability: AZ, CA, CO, FL, GA, ID, IL, KY, LA, NC, OH, OR, SC, TN, TX, WA 

UpEquity works similarly to other buy-before-you-sell programs, but it gives owners up to 180 days to sell their current home. You can also choose your own realtor. UpEquity’s program has two options that can be used separately or together:

• Trade Up: Gives homeowners a guaranteed offer on their current home so they can look for a new one without a sales contingency
• Equity Advance: A bridge loan that unlocks equity in your current home

One highlight of UpEquity is its fast process. If your home qualifies, you can receive an equity advance offer in minutes to help buy a new house. UpEquity will also purchase your current property if it doesn’t sell within the set timeframe. You’ll receive a first installment, with the rest coming after your home sells.

However, homeowners must have at least 15% equity in their property to qualify. The house must also be:

• A single-family home with one to four units, a condo, or a planned unit development (PUD)
• Adequately maintained, requiring only minor renovations and improvements
• Located within 30 miles of a metro area

Calque

• Program fee: $2,000 + 1% at closing
• Average customer rating: No verified 3rd-party reviews No verified 3rd-party reviews
• Availability: Nationwide, excluding Alaska and Hawaii

Calque gives homeowners two ways to buy before they sell:

• Trade-In Mortgage: Through a Calque lending partner, you can unlock your home’s full equity and list the house for sale with a guaranteed backup offer.
• Contingency Buster: You can use Calque’s guaranteed backup offer to buy out your current mortgage before selling, lowering your DTI.  

Both options enable you to make a stronger offer on a new home, but the fees may offset the convenience. And while you get 150 days to sell your current property, the backup offer is typically only 86–87% of your home’s full market value.

One positive aspect is that you can choose your own real estate agent to work with, allowing you to negotiate their commission fee. This can help save you some money.

Calque has strict program criteria, though. For instance, your home may not qualify if it’s in a 55+ community or a town with fewer than 5,000 residents. It also won’t qualify if it’s been listed for sale for 100 days. Other exclusions include:

• Commercial properties
• Subdivisions with active new constructions
• Mobile or manufactured homes
• Condo hotels or co-ops
• Rental properties
• Short sales or foreclosures
• Homes in disrepair

More ways to buy a house before you sell

Many buy-before-you-sell programs operate in limited areas where the housing market is a good fit for their business model.

Even if you want to buy and sell in a market where they do business, your home must meet their qualifications, including having enough equity in your home to borrow against. But if you don’t live in the right area or don’t have enough equity, you still have alternatives.

Get a cash offer

Getting an offer from a cash home buyer or an iBuyer can be similar to using a buy-before-you-sell program. Companies like Opendoor or Offerpad make it easier to unlock your equity by purchasing your home directly and closing in as little as a week. You can even choose your own closing date to fit your moving timeline.

“With a cash sale, you can have the house sold and done,” said Danny Johnson, founder of Danny Buys Houses. “This allows sellers to be confident everything will go smoothly.”

However, there are some downsides to be aware of. For one, an investor will typically pay 70–80% of your home’s after-repair value (ARV). An iBuyer might offer more, but you’ll have to pay higher service fees of around 5%. Of course, since you aren’t listing your home for sale, you can save on realtor fees.

Clever Offers lets you compare multiple offers from cash home buyers. There are no service fees, and sellers will receive offers from pre-vetted buyers to find the best price for their house.  

Ask for a leaseback

With a sale leaseback (or rent-back) agreement, a buyer purchases your home but allows you to continue living in it as a tenant while you search for a new house. This eases the burden of finding your dream home quickly.

“My client negotiated a 60-day rent-back after selling, which let her house hunt without timeline pressure,” said Wesley Kang, a Los Angeles realtor and founder of 1099Cafe.

A sale leaseback tends to inconvenience buyers, who usually want to go ahead and move into their new home. So, they may demand other concessions, like a lower sale price. If you, as the seller, advertise that you are open to a leaseback agreement, you may also have a smaller pool of potential buyers.

As a buyer, offering a sale leaseback can give you more time to sell your home and relieve you of a double mortgage, since you’ll be collecting rent on the house you just purchased. It can also make your bid more competitive.

Use a home sale contingency 

Under a home sale contingency, you agree to buy the new house if your current one sells by a set date. Sellers can also negotiate this, agreeing to sell only if they can buy a new one within a specified time.

Sellers may choose this option if the market is slow or they aren’t getting much interest from buyers. For buyers, they can avoid paying two mortgages and having to move twice.

However, the uncertainty around a home sale contingency makes this type of offer less appealing in a competitive market.

“A solid offer without a contingency will most likely catch a seller’s eye ahead of your offer, and you risk losing that dream home,” said Omer Reiner, a realtor and president of Florida Cash Home Buyers, LLC.

Apply for a HELOC

A home equity line of credit (HELOC) uses your current home’s equity as collateral. It’s similar to a credit card — you can continuously borrow up to a maximum limit with variable interest rates and variable minimum payments. Most lenders let you access 80-85%[2] of your home’s equity.

You can use a HELOC to cover the down payment on a new home or make improvements to your current house to increase its market value. The interest rates are lower than those of unsecured loans, such as credit cards. You can typically draw on the HELOC for 10 years and repay the borrowed amount over 20 years.

But if you default, you could lose your home completely. And while the flexibility of a HELOC is one of its advantages, this could become a disadvantage if you can’t control your spending and use the loan for other expenses.

Look into personal financing options

Tapping into your investments or savings is another option. For instance, you may be able to borrow up to half of your retirement account balance or no more than $50,000 — whichever is lower.

There’s no credit check or loan application, which can be good if you need money quickly or have poor credit. But you risk setting back your retirement goals if you can’t repay the loan promptly. In this case, the borrowed amount could be considered an early distribution, making you responsible for income taxes on the amount plus a 10% early withdrawal penalty.

Selling investments like stocks, bonds, mutual funds, or real estate can also help you afford a new home, but you may incur a capital gains tax[3]. You could ask a family member to lend you the money as well.

Recast your mortgage

You might consider making a lower down payment (whatever you can afford) on your new home, which will stick you with a higher monthly mortgage. Once you sell your current house, you can use the proceeds to make a large lump-sum payment toward your new loan’s principal balance.

Recasting your mortgage doesn’t affect your interest rate or repayment term, but your lender will recalculate your mortgage and give you a new, lower monthly payment. Most lenders charge a service fee of a few hundred dollars, and you may have to wait a few months before you can recast the loan.

It’s important to note that while a 20% down payment is recommended, it’s not mandatory. Most loans only require 0–10% of the amount you’re borrowing.

However, if you put less than 20% down, you may have to pay private mortgage insurance (PMI) each month (typically 0.5–1.5% of the loan amount). Lenders must cancel PMI when your mortgage balance falls to 78% of your home’s original value or when you’re halfway through your loan term.

Work with an experienced real estate agent

Another option is to work with an agent experienced in helping people buy and sell. An agent can help you make competitive offers, think of creative financing options, work with your budget, and save money. Keep in mind that some of the buy-before-you-sell services require you to find your own agent, as well.

“A professional realtor relieves stress by creating order, foreseeing potential problems, and keeping everything under control,” said Alexei Morgado, a Florida realtor and founder of Lexawise. “When it’s all detailed at the beginning, clients feel more solid and comfortable in their decisions.”

Most real estate agents charge sellers 2.5–3% of their home’s sale price, while buyer’s agents collect another 2.5–3% — meaning 5–6% goes to agent fees alone, equal to $30,000 on a $500,000 house.

Working with an experienced agent who offers a competitive commission rate can help offset the considerable costs of buying and selling.

Companies like Clever Real Estate secure pre-negotiated commission savings with top local agents from around the country, saving home sellers thousands of dollars in realtor fees without sacrificing service.

Frequently asked questions about buying before you sell

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