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The HomeLight Buy Before You Sell Program

HomeLight Home Loans NMLS # 1529229 | Equal Housing Lender | NMLSconsumeraccess.org | homelighthomeloans.com/licenses-and-disclosures/

Helping your clients transact with speed and certainty

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Today, we’ll cover:

— Why talented agents leverage Buy Before You Sell

— How the program works

— Frequently asked questions

— Next steps

Agenda

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Introducing HomeLight Buy Before You Sell

HomeLight Buy Before You Sell is a powerful program designed for talented agents like you.

Together, we help your clients move into their new home with speed and certainty — while getting the strongest possible offer for their old home.

We help you generate more transactions and drive better outcomes by leveraging your expertise alongside our platform.

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The benefits of the Buy Before You Sell program for your clients

Unlock a portion of equity from their current home

Make a strong offer on their next home, and save money with no home sale contingency

Avoid renting and moving twice

Maximize the sale price of their current home

Many of your clients need to tap into their current equity to purchase their next home. With Buy Before You Sell, they can do just that — and have a better possible outcome on their transaction.

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Buy Before You Sell can help a variety of clients avoid stress, sell for more, and save money on the purchase of their new home

Upsizing�

Growing families & changes in lifestyle

Downsizing�

Life changes including empty nesters, retirees, divorces, and more

Need equity in current home

For any reason�

New jobs & transfers�

Those who need to move for work on an expedited timeline

Flexibility to avoid showings

�Those with kids, pets, & unpredictable schedules

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Why top agents like you leverage Buy Before You Sell

Maximize the selling price of your client’s home and earn more commission by listing it unoccupied and staged.

  • An unoccupied, staged listing typically sells for more (up to 10%*)
  • Your clients avoid rentals and moving twice — ultimately saving money and making for a happier move.

* According to surveyed real estate agents on the HomeLight Agent Advisory Board

You’re able to address your client’s objections to selling — and facilitate transactions that wouldn’t be possible otherwise.

The program provides speed and certainty for your client's home sale, allowing you to close more transactions and earn more commission.

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How the program works

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Buy Before You Sell has four simple steps

Get your client’s property approval and Equity Unlock Amount

Discover the amount of equity your clients are able to unlock from their current home with no fee or commitment

Enable your client to make a strong offer

Your clients are able to make a stronger offer on their new home, with no home sale contingency

Help your client avoid a double move

Your clients are able to move in immediately. From the day they close on their new home, you have:

  • 10 days to list their prior home on the open market
  • 90 days to get their prior home under contract

Maximize the sales price of their current home

You can list the home vacant and maximize its sales price on the open market. Once the home sells:

  • You get paid!
  • HomeLight collects the program fee & reimbursement for the unlocked equity

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Here’s a short video on how it works

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Calculate your client’s estimated Equity Unlock Amount�before your pitch

Use the Equity Unlock Amount Calculator to estimate the portion of equity your client will be able to unlock from their current home to put towards the purchase of their next home.

Simply follow these steps:

  1. Visit the HomeLight agent portal on desktop or download the HomeLight mobile app.

  1. Navigate to Buy Before You Sell Resources on the right-hand side of the page.

  1. Click on Buy Before You Sell Equity Unlock Amount Calculator.

  1. Enter your client’s property address and estimated mortgage balance into the calculator.

  1. You’re ready to use the estimated Equity Unlock Amount in your client pitch!

* Note that the range is meant to be an estimate of the Equity Unlock Amount based off of your input and our system’s initial review of the property.

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Drive more business with your customized Lead Capture Link

Pitch Buy Before You Sell with the click of a button by sharing your Lead Capture Link with clients.

The link will direct clients to your personalized Buy Before You Sell page — featuring details on the program, a form for your clients to show interest, and highlights from your agent profile on HomeLight.

You can share your Lead Capture Link with clients in a variety of ways:

  • Turn it into a QR code through the Agent Portal
  • Email it
  • Text it
  • Add it to your website
  • Display it your open houses
  • Implement it into listing presentations

To get started, sign into the HomeLight Agent Portal and navigate to the Buy Before You Sell Resources on the right-hand side of the page.

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Your dedicated team

We’re here to provide you with world-class support to ensure the best possible experience for you and your clients.

Strategic Relationships Manager

Serves as your main point of contact at HomeLight and helps you get the most out of our platform

Agent Account Manager

Serves as your main point of contact on all transactions and provides guidance through the Buy Before You Sell process

Client Advisor�Serves as your client’s main point of contact, helping them with mortgage needs as a licensed loan officer, and walking them through the Buy Before You Sell process

Escrow Officer

Oversees the completion of all closing documents and tasks

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Frequently asked questions

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Answering your questions

How much does the program cost?

How long does it take?

How do you determine the Equity Unlock Amount?

How do you determine the Loan Payoff Value?

What happens if the home doesn’t sell after 90 days?

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Thank you

HomeLight Home Loans NMLS # 1529229 | Equal Housing Lender | NMLSconsumeraccess.org | homelighthomeloans.com/licenses-and-disclosures/

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Appendix

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Buy Before You Sell property eligibility requirements

The Home

  • Home value: We can serve homes valued up to $2.5M
  • Square feet: 750 sqft - 5,500 sqft
  • At least 1 bedroom and 1 bathroom
  • Solar lien (loan) to be paid off in full
  • Solar lease does not need to be fully paid off, but will be factored into Equity Unlock
  • Not occupied by tenants at and after time of purchase
  • Fee simple only (own the property and land outright)
  • No VA or FHA financing on incoming residence
  • The departing residence and incoming residence cannot be a second home or investment property

* Dependent on property-specific details. HOAs require additional approval

The Lot & Location

  • Eligible properties: Single-family homes, townhomes, or condos*
  • Less than 5 acres
  • Must have access to public roads, public utilities (water, electricity), and inspected septic or well connection
  • Must be zoned as residential
  • Not in an age-restricted community
  • Not a short-sale or pre-foreclosure
  • Not subject to any leases, including tenancy, oil/gas/mineral rights
  • Incoming residence must have a Certificate of Occupancy if it is a new construction
  • No active foreclosures or bankruptcies

Repairs & Renovations

  • No ongoing renovations affecting bathrooms, kitchens, drywall, or landscaping
  • No ongoing repairs or upgrades to major system such as foundation, framing, roof, plumbing, electrical, HVAC, fireplace, or chimney

Listing & DOM

  • There is no limit for how many cumulative days a property has been or expects to be listed on the market at time of submission. However, the total number of listed days can affect the client's Equity Unlock based on the property’s risk profile.

For more information, visit www.homelight.com/bbys

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Answering your questions

How much does the program cost?

It’s free to get started and see how much equity your clients can unlock.

The cost for the program is simple:

  • 2.4%* of the home sale if you choose to use an outside lender and closing company.
  • 1.7%* of the home sale if you use our lending and closing services.

The program is less expensive than a typical bridge loan, and the 1.7% cost can easily be made up for in your ability to sell your clients' old home unoccupied for a higher price on the open market, win their new home at a lower price, and with the cost savings from them not having to move twice.

*Fees subject to change; minimums apply

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Answering your questions

How long does it take?

It takes 2-3 days on average to get conditional approval, and you’ll be ready to submit offers with no home sale contingency within 7-10 days.

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Answering your questions

How do you determine the Equity Unlock Amount?

The Equity Unlock Amount is determined using a proprietary algorithm that takes many factors into consideration, including your estimate of value, market conditions, projected market risk, specific property risk, borrower financials, and outstanding loans on the home.

How do you determine the Loan Payoff Value?

This is the minimum amount needed for clients to pay off what they owe against their house. It’s a simple equation — the Loan Payoff Value is:

Client’s outstanding mortgage loan + Equity Unlock Amount

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Answering your questions

What happens if the home doesn’t sell after 90 days?

This is highly unlikely — you have a great pricing strategy in place. In the worst case scenario, you can make pricing adjustments as you go to ensure we sell the home for top dollar on the open market. If the home doesn’t sell after 90 days, HomeLight will purchase it at the Loan Payoff Value, and you’ll get the upside when it’s resold.

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Buy Before You Sell Summer Sale has begun

  • Save your clients $1,000 when they use Buy Before You Sell

  • Your clients will unlock a $1,000 decrease in their Buy Before You Sell fee, and gain it back towards their Equity Unlock Amount

  • This offer is available to clients who go under contract on their new home between May 1st, 2023 and July 31st, 2023

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Here’s how to unlock your client’s equity

It’s free to get started and unlock your client’s equity.

Simply follow these steps:

  1. Visit the HomeLight agent portal on desktop or download the HomeLight mobile app.

  1. Select Buy Before You Sell.

  1. Submit details regarding your client’s property.

  1. The HomeLight team will be in touch regarding how much equity your client can unlock.