Selling your current home while trying to buy a new one is stressful. Timing rarely lines up. That’s exactly why Buy Before You Sell programs exist—and why more home buyers are using them to move without pressure. A Buy Before You Sell program lets homeowners purchase a new home before selling their existing one. Home companies (often proptech or real estate firms) use short-term financing, home equity advances, or guaranteed offers to remove timing and cash-flow issues.
Below is a clear, practical breakdown of how these programs work, who they’re best for, and what to watch out for.
What Is a Buy Before You Sell Program?
A Buy Before You Sell program allows homeowners to:
- Buy a new property first
- Move out comfortably
- Sell their old home afterward—without rushing or accepting low offers
These programs are usually offered by:
- Real estate technology companies
- iBuyer-style home companies
- Brokerages partnered with financing firms
They bridge the financial gap between buying and selling.
How Buy Before You Sell Programs Work
1. Home Value Assessment
The company evaluates your current home using:
- Market data
- Comparable recent sales
- Property condition
This sets the maximum amount they’re willing to advance.
2. Short-Term Funding or Equity Advance
The company provides funds in one of three ways:
- A bridge loan
- A cash advance against your home equity
- A guaranteed backup offer if your home doesn’t sell
This gives you buying power for your next home.
3. You Buy the New Home
With funding secured, you:
- Make a competitive offer
- Avoid contingencies
- Close faster (often like a cash buyer)
This is a major advantage in competitive markets.
4. Sell Your Old Home—On Your Timeline
After moving out:
- The home is staged (often included)
- Listed at market value
- Sold without pressure
Once sold, the company is repaid from the proceeds.
Types of Buy Before You Sell Programs
Bridge Loan-Based Programs
Best for homeowners with strong credit and equity.
You repay once your old home sells.
Equity Advance Programs
The company advances part of your home’s value upfront.
Lower risk, but usually higher fees.
Guaranteed Sale Programs
The company promises to buy your home if it doesn’t sell.
Often used by traditional brokerages.
Pros & Cons of Buy Before You Sell Programs
| Pros | Cons |
|---|---|
| Buy first without selling stress | Service fees apply |
| Stronger offers on new homes | Not available in all areas |
| No rushed pricing | Requires sufficient home equity |
| Move once, not twice | Some programs have strict timelines |
| Better listing results | May not suit low-value homes |
Real-World Examples
Example 1: Growing Family Upgrade
A family needed a larger home but couldn’t risk selling first.
Using a Buy Before You Sell program, they purchased their new home, moved in, then sold their old one after staging—earning more than expected.
Example 2: Competitive Urban Market
A buyer lost several homes due to contingent offers.
With this program, they made a non-contingent offer and won immediately.
Who Should Consider a Buy Before You Sell Program?
These programs work best for homeowners who:
- Have solid home equity
- Are buying in competitive markets
- Want to avoid temporary rentals
- Need flexibility in timing
They’re less ideal if:
- Your home has major condition issues
- You’re in a very slow market
- Equity is limited
FAQs (People Also Ask)
Is Buy Before You Sell worth it?
Yes—if convenience, timing, and stronger offers matter more than small service fees.
How much does a Buy Before You Sell program cost?
Costs vary but usually include:
- Program fees (1–3%)
- Interest on short-term financing
- Standard selling costs
Can I use Buy Before You Sell with my own agent?
Most programs allow you to use your preferred real estate agent.
What happens if my home doesn’t sell?
Some programs offer a guaranteed purchase or price adjustment options.
Does Buy Before You Sell affect my mortgage approval?
It can. Lenders will review temporary debt, so pre-approval is critical.
Final Verdict: Is Buy Before You Sell Right for You?
A Buy Before You Sell program removes one of the biggest pain points in real estate—bad timing.
If you value:
- Less stress
- More control
- Better buying power
…it can be a smart move.
However, always compare fees, timelines, and guarantees. When used correctly, this program can turn a chaotic move into a smooth transition.
Bottom line:
Buy Before You Sell programs aren’t for everyone—but for the right homeowner, they’re a game-changer.