The Real Costs: What HomeLight Buy Before You Sell Actually Costs in Los Angeles
HomeLight Buy Before You Sell charges a 2.4% program fee based on your departing home's final sale price. For a $1.2 million Los Angeles home, that's $28,800. But the fee is only part of the equation-the program often generates savings that exceed the cost through non-contingent offer advantages, vacant staging premiums, and avoided expenses. Here's the complete financial picture.
The Base Fee: 2.4% of Your Sale Price
HomeLight charges a flat 2.4% program fee calculated on your departing home's final sale price. The fee is the same whether you sell in 30 days or use the full 120 days.
| Home Sale Price | Program Fee (2.4%) |
|---|---|
| $800,000 | $19,200 |
| $1,000,000 | $24,000 |
| $1,200,000 | $28,800 |
| $1,500,000 | $36,000 |
| $2,000,000 | $48,000 |
The fee is collected at closing when your departing home sells-it's deducted from your proceeds along with standard closing costs and agent commissions. You don't pay upfront.
Additional Potential Costs
Beyond the base fee, you may encounter one additional cost:
- If you don't use HomeLight Closing Services: +$1,500
- Solution: Use HomeLight's closing services for at least one transaction to avoid this fee
There are no other BBYS-specific fees. Standard transaction costs (agent commissions, title, escrow) are the same as any sale-you'd pay those regardless of using BBYS.
What You're NOT Paying
Unlike bridge loans or HELOCs, Buy Before You Sell does NOT charge:
- Interest on equity unlock: The equity advance is not a loan with interest
- Origination fees: No points or origination like traditional financing
- Monthly payments: No payments while selling your home
- Prepayment penalties: No penalty if you sell quickly
This is a crucial distinction. A traditional bridge loan at 10% APR costs approximately $4,200/month in interest on a $500,000 loan. Over 6 months, that's $25,200 in interest alone-plus origination and closing costs.
The Hidden Savings: Where BBYS Pays for Itself
1. Non-Contingent Offer Advantage
In competitive LA markets, sellers prefer non-contingent offers because they're certain. Buyers making contingent offers often pay MORE or lose out entirely.
The advantage: Non-contingent offers typically save 1-3% on purchase price. On a $1,000,000 purchase, that's $10,000-$30,000 less paid for your new home.
2. Vacant Staging Premium
HomeLight data indicates homes sold vacant and staged can sell for up to 10% more than occupied homes. Even a conservative 3-5% improvement is significant.
Why vacant homes sell for more:
- Professional staging without your furniture limitations
- Flexible showing schedule (no coordinating with your life)
- Buyers can envision themselves in the space
- No pet smells, personal clutter, or "lived-in" feel
On a $1,200,000 home: 5% improvement = $60,000 higher sale price
3. Avoided Costs
Without BBYS, you often incur costs the program eliminates:
| Cost You'd Otherwise Pay | Typical Range |
|---|---|
| Temporary housing (3 months) | $9,000 - $18,000 |
| Moving twice instead of once | $6,000 - $10,000 |
| Storage (3-6 months) | $600 - $3,000 |
Let's Run Your Numbers
I'll show you exactly what BBYS would cost-and what you could potentially save-based on your specific situation.
Free consultation - No pressure
The Complete Math: A Real Scenario
Even with conservative estimates on staging premium and purchase advantage, the math heavily favors BBYS in this scenario.
When the Math Doesn't Work
Buy Before You Sell isn't always the right financial choice:
Low equity position: If you have minimal equity, the 2.4% fee represents a larger portion of your proceeds. With only $100,000 in equity, a $14,400 fee (on a $600K home) is 14.4% of your equity-a significant bite.
Slow market: If homes in your area aren't selling quickly, the 120-day timeline may feel tight. The backup offer (which protects you from being stuck) is below market value-you don't want to need it.
Unrealistic expectations: If your expected sale price doesn't align with market data, you may end up triggering the backup offer.
Comparing to Alternatives
| Option | Cost on $1.2M Home (6 months) |
|---|---|
| HomeLight BBYS | $28,800 (fixed) |
| Bridge Loan (10% + fees) | $45,000 - $55,000 |
| HELOC (8%) | $25,000 - $30,000 |
| Contingent Offer | $0 (but rarely wins in LA) |
BBYS is more expensive than a HELOC but eliminates the contingency problem. It's less expensive than bridge loans and provides guaranteed exit protection.
Ready to See Your Real Numbers?
I'll calculate your Equity Unlock Amount and show you exactly what BBYS would cost vs. what you could save.
Call or Text (213) 444-2225Text works too - No obligation
