Buying and selling a house at the same time has always been a challenge. In many instances, a homeowner needs to use equity from their existing home to buy their next residence.
That can mean adding a home sale contingency to their offer, which makes it weaker and less attractive to sellers, or finding temporary housing between transactions. Neither of these options are ideal.
Seattle-based Flyhomes — alongside companies including HomeLight, Orchard, Knock, and Ribbon — is one company in real estate aiming to help people navigate this balancing act more smoothly.
As you explore different real estate solutions out there, you may be curious to read up on Flyhomes reviews and how the solution compares to others available to you.
Let’s take a closer look at Flyhomes’ main offerings and as well as how the company has been reviewed by past customers.
Flyhomes’ Buy & Sell solution
The Flyhomes Buy Before You Sell program is a home trade-in service that helps homeowners buy and sell property at the same time.
Key to this process is the short-term loan they provide to clients which allows them to make a cash offer on a new home before their current property is sold.
Here is how the process works:
- Flyhomes puts buyers through a pre-underwriting process that gives them a budget they can use to make a cash offer on a home. This short-term, cash loan is payable within 10 days, as opposed to the current 50-day timeline for a mortgage closing.
- Once they’ve closed on the new home and moved in, then the second stage of the process begins: putting their current home on the market. The Flyhomes real estate team manages this process, including cleaning, staging, and marketing the property.
- After the home sells, the client can either work with Flyhomes to finalize the funding for their new home or search for the lender of their choice. Customers in this program have three months after their house sells to make this decision. Once the funding is finalized, the short-term loan is dissolved.
Flyhomes’ customers that use this program will typically pay a fee of $100-$200 per day between the time they move into their new home and finalize the sale on their old home. This is akin to the costs you’d incur for any short-term housing solution, but without the inconvenience of moving multiple times.
The company also offers a cash offer product for people who don’t have an existing home to sell.
Does Flyhomes serve your area?
Flyhomes does not yet serve all markets in the U.S. It is available to customers in Washington state, California, Oregon, Massachusetts, Texas, and Colorado.
If you live outside one of these areas but are interested in using Flyhomes, you can fill out a form on their website to request that Flyhomes move into your market area in the future.
Is there a cost to using Flyhomes?
Flyhomes advertises that they don’t charge any fees for their service beyond the standard commissions and closing costs that buyers and sellers are typically responsible for covering.
Sellers who use Flyhomes’ all-inclusive service will pay a premium for the convenience of having them manage the entire selling process, however. On average, customers who opt for the all-inclusive service will pay 2%-2.5% of their home’s final purchase price. For customers who choose to manage the cleaning, staging, and inspection themselves, the rate drops to 1.25%-1.5%.
For a $250,000 home, this would equate to a savings of about $2,500 for do-it-yourself home sellers.
As we mentioned earlier, customers in the Buy Before You Sell program will also incur a cost of $100-$200 each day as they live in their new home and await the sale of their current property. Customers who are in their new home for 45 days prior to the sale being finalized, for example, will be looking at a $4,500-$9,000 added expense.
How does Flyhomes make money?
Flyhomes generates most of its revenue through the real estate commissions it earns by helping its customers buy and sell real estate. Because their real estate agents earn a salary, rather than working on commission, Flyhomes takes half of the real estate commission that would typically go to the buyer’s agent. This is usually 2%-3% of the property’s purchase price.
What do customers think of Flyhomes?
Flyhomes is generally reviewed favorably by the customers who have used its service, with a 4.6-5 star rating across all platforms:
- Yelp 5 stars, 271 reviews
- Facebook 4.6 stars, 56 reviews
- Zillow 4.9 stars, 470 reviews
- Accredited, BBB with A+ Rating. 0 reviews or complaints
- Google 4.7 stars, 201 reviews
Many of their happy customers called out the real estate agents they worked with through the buying and selling process, as well as the knowledge and support they provided. Many of these reviews mentioned a Flyhomes rep by name.
One Google reviewer, who used the Flyhomes Buy Before You Sell program, said they had a very positive experience with “Dana and Zach” and were happy with most of the tours and inspections.
Customers who left neutral or negative reviews mentioned the challenges of working with various specialists throughout the buying and selling process and the confusion they felt this process caused.
When navigating the home buying process, for instance, the same reviewer above said Flyhomes may not be the best fit for people who want a “one-on-one, personalized experience.”
Regardless of whether the reviews are positive or negative, Flyhomes does take the time to respond to many of them — either with a note of appreciation or follow-up steps to rectify a negative experience. In one case, the company founder replied to thank a customer for sitting down and having lunch with him to discuss a less than favorable experience.
Pros and cons of using Flyhomes
Before deciding to work with Flyhomes, or another real estate trade-in company, you’ll want to weigh the pros and cons of the service with what your priorities are.
- Allows buyers to make a cash offer on a home, giving them a competitive bidding edge.
- Offers buyer and seller guarantees to provide peace of mind throughout the sales process. If your house doesn’t sell, Flyhomes will purchase it from you after 90 days. Or if you have buyer’s remorse within the first year of purchasing a new home, Flyhomes will buy it back from you.
- Creates a faster closing process with greater flexibility in choosing a closing date.
- The online portal is handy for buyers and sellers looking for a digital process with little one-on-one agent support.
- You won’t have a dedicated representative guiding you through the process. For first-time homebuyers, especially, this could create stress or confusion.
- There are additional fees that come with a Flyhomes transaction. Sellers will pay a higher commission fee for the convenience of having Flyhomes manage the full home selling process. Customers in the Buy Before You Sell program will have a $100-200 daily fee while their home sells.
- Buyers may feel compelled to go with Flyhome’s mortgage program, rather than shopping around for what might be a better deal, because of the price break that comes with financing through the company. You’ll want to compare interest rates, as well as how long you plan to reside in the home, before making a decision.
Other services offered by Flyhomes
Although Flyhomes primarily specializes in helping customers buy and sell real estate, they do have a few ancillary products, as well. For customers in Washington state, Flyhomes provides title and escrow services. The company also provides mortgage and home refinance loans.
Other home trade-in companies
Flyhomes is one of several companies that provide home trade-in services to buyers and sellers:
While these companies offer valuable services that can streamline the homebuying and selling process, they may not all be created equally — and the level of service you receive from one company might be very different from another. As with any major purchase, it’s valuable to shop around and know your options.
Take HomeLight’s Trade-In program, for example. While the end goal may be the same, the process is different.
How does HomeLight’s Trade-In program work?
When you work with HomeLight, we’ll agree to purchase your current home before you begin the homebuying process. This allows you to make a stronger, all-cash offer without having to worry about any lending or home sale contingencies. The process works like this:
- We’ll make an offer to purchase your current home, which will be payable (as a cash transaction) as soon as you’re ready to close on your new home.
- This gives you a budget for making a cash offer while house shopping. Because there are no contingencies and the risk is lower, cash offers (even if they are lower than others) are often favored by sellers.
- Once your offer is accepted, we’ll get moving on the details. First, we’ll purchase your home at the agreed-upon price. Then, we’ll give you the cash to close on your new home.
- After you’re all settled into your new home, we’ll work with your agent to kick off the home selling process. If the old home sells for more than what we paid for it, we’ll put the additional cash in your pocket (minus any selling and program fees).
HomeLight Trade-In is currently available in Arizona, California, Colorado, Florida, and Texas. Enter your information here to be notified when HomeLight Trade-In launches in your area. And hear about real client experiences with HomeLight Trade-In on the company’s blog.
Other services and tools offered by HomeLight
In addition to our Trade-In program, HomeLight provides the following services and tools:
- HomeLight Agent Matching: Helps match buyers and sellers with top agents in their area.
- HomeLight Simple Sale: Allows homeowners to sell their properties with an all-cash offer in as little as 10 days.
- HomeLight Home Loans: Provides competitive mortgage rate options for homebuyers.
- HomeLight Cash Offer: Gives buyers the ability to make a cash offer on their next home.
* Some services are not available in all states
Additional tools & resources
- Home Value Estimator
- Agent Commissions Calculator
- Home Affordability Calculator
- Net Proceeds Calculator
- Best Time to Sell Calculator
Weigh your options: The pros and cons of Flyhomes
If you’re looking for a simpler way to buy and sell a home at the same time, Flyhomes is a reputable option to consider.
The ability to navigate the real estate process online, make a cash offer, and unload the sales process are a few key benefits of the program, but it’s important to keep in mind that these features don’t come free. Depending on how long it takes for your home to sell, you could end up with a hefty bill for the daily fees you’ll accumulate after you move into your new home. But for some sellers, a trade-in program may be the solution they need.
The bottom line? Do your research and decide which trade-in or trade-up service is right for you. We invite you to explore HomeLight’s Trade-In program as well.
Header Image Source: (Nubelson Fernandes / Unsplash)