Buying with Flyhomes | Buy before you sell | Selling with Flyhomes | Locations | Opendoor vs. Flyhomes | Flyhomes Closing | Flyhomes reviews | FAQs
Flyhomes is a real estate brokerage and mortgage broker that offers a home trade-in service.
When you're buying and selling a home at the same time, Flyhomes can buy your new house upfront with an all-cash offer, then list your old house after you move. When your old house sells, you'll buy your new house back from Flyhomes.
With Flyhomes, you can avoid a temporary move between homes and win bids on houses in competitive neighborhoods by making all-cash offers.
Who should use Flyhomes?
✅ Buyers in competitive markets
Like other services in this category, Flyhomes can help you make an all-cash offer when you're ready to buy. If you're in a location where houses are selling quickly, removing the extra step of qualifying for financing can be very attractive to sellers since it reduces the chance of the sale falling through.
✅ People buying and selling
Most customers who use a service like Flyhomes need a way to bridge the financial gap between the purchase of their new home and the sale of their old one. It really comes down to timing, and Flyhomes can help you finance the interim period so you're able to pull off a purchase and sale.
❌ First-time homebuyers
With Flyhomes, you don't get a dedicated real estate agent when you're shopping for houses. Instead, the agent could change while you're shopping based on which Flyhomes employee meets with you to tour houses on a given day.
The first time you buy a home, you'll have a lot of questions. It's best to have a dedicated real estate agent in your corner to make sure you know what you're getting into.
❌ Homesellers looking for a quick, all-cash sale
If you need a fast, streamlined sale, Flyhomes isn't the best fit. Flyhomes will buy your home as a backup option if it doesn't sell on the open market, but there's no upfront cash sale option.
Compare offers from top companies in your area to the sale price you'd get with an agent.
| Flyhomes, at a glance | |
|---|---|
| ⭐Average customer rating | 4.9/5 (1210 reviews) |
| 📍Locations | CA, CO, MA, OK, TX, WA |
| 🏠Services | Buy, sell, home trade-in, mortgage, title & escrow |
Buy with Flyhomes
Buying with Flyhomes can make your offer more attractive to sellers since it's all cash and it's backed by the Flyhomes guarantee, which means they'll purchase the home even if you change your mind.
Flyhomes advertises their 1% rebate for buyers as a serious incentive for buyers to use their service. In reality, you'll only get this rebate after closing if you use a Flyhomes mortgage, and it might still be worth less than the additional interest you'll pay.
⚠️ We reached out to Flyhomes to find out when you get paid if you qualify for their 1% rebate, but we didn't get a response. Flyhomes reviews from customers indicate the rebate might not be paid out until 90 days after closing.
Pros & cons
✅ Pros
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❌ Cons
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How buying with Flyhomes works
When you start working with Flyhomes as a buyer, they'll pre-underwrite you for a mortgage in 24 hours so you're fully approved before you even start looking at homes.
Buyers can book tours using the Flyhomes app. A Flyhomes agent will meet you at each house to walk you through and present you with all of the information about the property.
⚠️ Expert tip: We recommend getting your own buyer's agent to ensure consistency and to avoid situations where Flyhomes might be representing the buyer and the seller in the same transaction.
On their buyer FAQ page, Flyhomes claims that, "...working with one of our Flyhomes licensed agents will significantly reduce the time and cost involved in purchasing your new home as they’re expert negotiators armed with proprietary tools to craft winning strategies."
The truth is you don't get a dedicated buyer's agent when you buy with Flyhomes. You may end up talking to a different agent every time you tour a home. This could lead to confusion over what you're looking for as a buyer and might result in a less consistent experience than you'd get from a dedicated agent.
Once you've chosen the house you want to buy, Flyhomes will submit an offer on your behalf. If the offer is accepted, you can close in as little as ten days and move into your new house as soon as possible.
After you've moved in, you have 90 days to shop around for another loan or to finalize your mortgage with Flyhomes. The catch is you have to pay a fee of $100–$200 per day once you move into your new home, because you don't actually own it until your old one sells. Once your financing is finalized, you buy back your new home from Flyhomes. All of the fees, including the rental fee, are charged when you take ownership of your new house.
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Is the Flyhomes rebate worth it?
You'll only be able to get the 1% Flyhomes rebate after closing if you borrow directly from Flyhomes or one of its partner lenders. But you might save more money in the long run if you give up the rebate and find a better mortgage rate somewhere else.
The Flyhomes rebate might save you thousands of dollars if you own the home for five years or less. If you own the home for more than ten years, however, it could actually cost you thousands of dollars.
Here's an example of how the total cost of a $500,000 Flyhomes mortgage with a $5,000 rebate would compare to the total cost of a loan that's just 0.2% cheaper but has no rebate.
| Duration of home ownership | Total mortgage cost (Flyhomes @ 2.5% with 1% rebate) | Total mortgage cost (other lender @ 2.3% without rebate) |
|---|---|---|
| 1 year | $18,707 | $23,088 |
| 2 years | $42,414 | $46,176 |
| 5 years | $113,536 | $115,440 |
| 10 years | $232,072 | $230,880 |
| 15 years | $350,608 | $346,321 |
A difference of 0.2% might not sound like much when you're promised extra cash after closing, but if you plan on owning your home for more than five years, you should shop around for the best rate before you sign up for a Flyhomes mortgage.
Flyhomes fees for buyers
As the buyer's agent, Flyhomes gets paid by the seller, so there's no official fee for buying with Flyhomes.
The largest fees a buyer will encounter when they're working with Flyhomes are the loan origination fees if they use Flyhomes Mortgage, which can be as high as 3% compared to the industry average of 0.5–1%.
If you choose to use Flyhomes closing services, you'll pay fees comparable to the industry standard.
| Flyhomes | Industry standard | |
|---|---|---|
| Origination fee | 0.75–3% of loan | 0.5–1% |
| Desktop appraisal fee | $175–$225 | n/a |
| Credit report | Unknown | $50 |
| Flood report | Unknown | $600 |
| Title insurance | $650–$2,800 | 0.5% (for both sides) |
| Escrow | $1,000 flat rate | 1–2% |
The Flyhomes guarantee for buyers
Flyhomes will stage and list your new home within 12 months of the purchase date if you're unsatisfied with it for any reason.
This guarantee can save you up to 3% in listing commission when you need to sell, but you'll likely still need to offer 2.5% to 3% to a buyer's agent as Flyhomes doesn't cover this expense.
You'd also need to cover all of the seller closing costs yourself (title, escrow, etc.) in this scenario.
Flyhomes buy before you sell
Flyhomes' buy-before-you-sell program works by pre-underwriting customers for a mortgage within 24 hours. This way, buyers are officially approved for a mortgage before they make an offer. When a buyer's offer is accepted, Flyhomes purchases the home for the customer and gives them 90 days to buy it back.
Customers have to pay a fee of $100–$200 per day once they move into their new home. This might be worth it if you're in a situation where you'll otherwise need to pay for temporary accommodations. It also can save you the hassle of moving twice.
You have 90 days to shop for a loan with another lender, or finalize your loan with Flyhomes Mortgage. If you use a mortgage directly from Flyhomes or one of their partner lenders, you'll get the 1% lender rebate.
Pros & cons
✅ Pros
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❌ Cons
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Flyhomes fees
Flyhomes advertises a 5–6% fee for using their buy-before-you-sell service, but in reality the total cost is at least 15% when you factor in the closing costs on your old home and your new one.
To illustrate all of the costs associated with trading your home in, let's look at an example:
A Flyhomes customer buys a new house for $300,000 and then sells their old house for $250,000 after being listed for 30 days. We'll also assume this customer qualified for the 1% rebate since they secured their new mortgage with Flyhomes.
| 🏠 Old home ($250,000) | 🏡 New home ($300,000) |
|---|---|
| 5–6% listing fee | 3–5% closing costs |
| 1–2% repair deductions | -1% lender rebate |
| 1–3% closing costs | *$100–200 daily rental fee (30 days) |
| Total costs: $27,500 | Total costs: $18,000 |
*Denotes a cost not associated with traditional home sale or purchase.
The customer would have selling costs of approximately $27,500 (11%) and total buying costs of approximately $18,000 (6%), for a combined total of $45,500.
The biggest variable in this scenario is the $100–$200 daily rental fee of living in the new home. If the old home sells in less than 30 days, the customer pays less. Conversely, if it takes more than 30 days, the customer pays even more.
Flyhomes selling time
Flyhomes operates in competitive markets, so it's unlikely a seller would have to list their home for more than 30 days. Data from Flyhomes shows that their overall selling time to be slightly faster than the industry median, even in hot markets. This may be due in part to a small sample size and because Flyhomes is carefully selecting homes it knows will sell quickly.
Flyhomes vs. Opendoor Complete
Opendoor, one of the largest iBuyers, recently launched a home trade-in service that's similar to what Flyhomes offers and is available in many of the same cities.
The most significant difference between Flyhomes buy-before-you-sell program and Opendoor Complete is that Opendoor doesn't charge a daily rental fee for customers to live in their new home until they've been there for 120 days.
Opendoor has a 90-day buy-back guarantee for customers who aren't satisfied with their new home. There's a 3% fee for using this guarantee.
Flyhomes' guarantee for buyers is that they'll stage and list the new home for free within one year of the purchase date if you're not satisfied. However, you'll still have to offer 2.5–3% to a buyer's agent.
This means that customers who buy Opendoor homes have a guaranteed way out if they change their mind, but they only have a 90-day window to exercise that option.
Flyhomes customers in the same situation have to relist and wait for a private buyer to purchase the home, but they have up to a year to do it.
| Opendoor | Flyhomes | |
|---|---|---|
| Fees | 5% selling fee | 0.75% for buying, 5–6% for selling |
| Timeline milestones | You have 240 days to "buy back" your new home from Opendoor | You can sell directly to Flyhomes at end of 90-day listing period |
| Backup offer from company | ✅ | ✅ |
| "Rent" fee on new home? | 0.02%/day (after 120 days) | $100–$200/day |
| Buyer refund | 1% | 1% |
| Refund option | ✅Opendoor will buy the home back (within 90 days) for a 3% fee | ✅Re-list the home for free and pay 2.5–3% to a buyer's agent |
Sell with Flyhomes
Home sellers can list with Flyhomes for a listing fee of 2–2.5%, or as little as 1.25–1.5% if they opt out of additional listing services like cleaning, staging, and virtual tours. However, you'll still have to pay 2–2.5% commission to the buyer's agent.
Without the add-on services, listing with Flyhomes is similar to listing with a discount broker, since you get the benefit of exposure on the open market without paying full commission.
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Pros & cons
✅ Pros
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❌ Cons
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Flyhomes' guarantee for sellers
Flyhomes guarantees home sellers that they'll purchase their home if a buyer backs out after all of their contingencies have been met. The catch is that this guarantee only applies if the buyer is also a Flyhomes client.
There's no obligation to use this guarantee if the buyer backs out — you can continue to look for better offers.
Flyhomes listing fees
The total cost to sell a home with Flyhomes ranges from 5.75–10.5% of the sale price when you include commissions, closing costs, and deductions for repairs.
| Listing fee | 1.25–2.5% |
| Buyer's agent commission | 2.5–3% |
| Closing costs | 1–3% |
| Repairs | 1–2% |
| Total | 5.75–10.5% |
Flyhomes locations
Flyhomes offers home trade-in, cash offer, and mortgage services in these locations:
- Seattle, WA
- San Francisco Bay Area
- Southern California
- Boston, MA
- Portland, OR
- Boulder, CO
- Denver, CO
- Dallas, TX
- Austin, TX
Flyhomes for Agents, a program that allows other brokerages and agents to use the Flyhomes program, is available in California, Colorado, Idaho, Maryland, Massachusetts, Oregon, Texas, Washington state, and Washington, D.C. Flyhomes plans to add additional cities in 2022.[1]
Flyhomes Closing
Flyhomes Closing is Flyhomes' in-house title insurance and escrow service.
Customers can use Flyhomes Closing to streamline their transaction, but you're allowed to shop around for the best possible escrow and title insurance rates.
Flyhomes Closing fees
Flyhomes charges a flat rate of $1,000 plus tax for all purchase escrow. This means if you use Flyhomes Closing when you trade-in your house, you'll pay the $1,000 flat fee twice — once when you're selling and once more when you're buying.
Title insurance rates are based on a percentage of the home's value, with higher value homes getting a more favorable rate.
| Homeowner's title* | Lender's** |
| 0.21–0.33% | 0.12–0.25% |
*Typically paid by the seller in all Flyhomes markets except Massachusetts
**Typically paid by the buyer
Flyhomes reviews from real customers
The majority of Flyhomes reviews from customers on third-party sites are positive, with an average rating of 4.9 across 1210 reviews.
| Rating | Total reviews | |
|---|---|---|
| Weighted avg. | 4.9 | 1210 |
| Yelp (Seattle) | 5 | 308 |
| Yelp (Southern California) | 5 | 148 |
| Zillow | 4.9 | 553 |
What customers liked
Positive reviews of Flyhomes focused on things like:
- Success getting offers accepted in highly competitive markets.
- Easy home tour booking via the Flyhomes app.
- Convenience and professional customer service.
What customers didn't like
Negative customer reviews focused on issues like:
- Unclear communication regarding how and when the lender credit would be issued.
- Many different contacts at the company who may not be updated with your information and preferences
- Inexperienced buyer's agents who couldn't answer basic questions during home showings.
- Pressure to work with Flyhomes' inspection and appraisal partners to keep everything moving quickly.
- Negotiation methods that favored sellers and resulted in higher purchase prices than the buyer anticipated.
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Alternatives to Flyhomes
Knock
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Knock allows customers to purchase a new home before selling their old one. You'll sell on the open market with a traditional real estate agent. Knock will cover your old mortgage until your home sells — but you'll still eventually have to settle up, and costs can add up fast if your home sits on the market.
Pros
- You'll sell on the open market, potentially receiving offers above fair market value.
- You get a $35,000 advance for home repairs before selling.
- Compared to competitors, Knock accepts older homes (built after 1930).
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- You'll have multiple points of contact rather than one dedicated agent.
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Knock is currently operating in select cities in these states: AZ, CA, CO, FL, GA, IL, MD, MI, MN, NC, OR, SC, TN, WA.
Knock's weighted average is 4.8/5 based on 810 reviews.
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Orchard
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Orchard is a home trade-in service that allows you to purchase a new home by getting access to your current home's equity. You can then list your old home on the market with an Orchard listing agent.
If you need to move quickly but still want top dollar for your home, Orchard is worth considering. However, Orchard only accepts homes built between 1920 and 2020 and worth between $200,000 and $1 (or $1.5 million, depending on the market).
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- You can use Orchard's Offer Boost program to make a cash offer on a new home.
- If your home doesn't sell in 120 days, you can accept Orchard's guaranteed cash offer.
Cons
- Homes must be relatively new compared to what competitors accept (built after 1972 vs. 1930–1960).
- Orchard's cash offers will likely be much lower than what you could sell for on the open market.
Orchard is currently operating in these locations:
- CO: Denver
- GA: Atlanta
- TX: Austin, Dallas–Fort Worth, Houston, San Antonio
As of 10/21/2022, Orchard's average customer rating is 4.8/5 based on 1,184 reviews.
- Trustpilot: 4.8/5 (2.71/5 (14 reviews)
- Website: orchard.com
- Phone: (844) 515-9880
- Email: [email protected]
FAQs about Flyhomes
Is Flyhomes an iBuyer?
Flyhomes does purchase homes, but only for a short period of time to facilitate a home trade in for a customer.
For home buyers, Flyhomes purchases the new home upfront and then allows the customer to buy it back once their old home sells.
Flyhomes gives home sellers a backup offer — it will buy your home if it doesn't sell on the open market after 90 days.
How much does it cost to use Flyhomes?
Customers who sell with Flyhomes can expect to pay 5.75-10.5% in total selling costs.
Customers who buy using Flyhomes pay a 0.75-3% loan origination fee, plus costs for escrow, title insurance, and other buyer's closing costs. Buyers who obtain a loan through Flyhomes Mortgage are eligible for a 1% credit after their sale closes.
Where does Flyhomes operate?
Flyhomes is currently available to buyers and sellers in:
- Seattle, WA
- San Francisco Bay Area
- Southern California
- Boston, MA
- Portland, OR
- Boulder, CO
- Denver, CO
- Dallas, TX
- Austin, TX
