Buy Before You Sell programs involve fees in addition to the standard closing costs of your new purchase mortgage. Understanding the full cost picture before you commit is essential.

BBYS Program Fees

• Program fee: Most BBYS providers charge a fee — typically 1%–3% of the equity advance or bridge amount — for the service of providing the transition financing
• Bridge loan interest: If a bridge loan is used, interest accrues on the outstanding balance during the transition period at the bridge rate
• Extension fees: If the sale window needs to be extended, additional fees may apply

New Purchase Mortgage Costs

Standard closing costs apply to the new purchase mortgage — origination fees, appraisal, title insurance, escrow, and prepaid items. These are independent of the BBYS program fees.

Selling Costs on Departing Residence

When your current home sells, you will pay the standard costs of a California home sale — agent commissions, transfer taxes, escrow fees, and any outstanding HOA or property tax prorations.

Is the Total Cost Worth It?

For most California move-up buyers, the cost of the BBYS program is offset by the ability to make a non-contingent offer — which can mean winning in a competitive situation where a contingent offer would have been rejected. The alternative cost (renting temporarily, storing belongings, moving twice) often exceeds the program fee.