- 💰 Homeward charges up to 2.4% in service fees, plus leaseback rent and double closing costs.
- 📉 Buyers using rebate brokers can potentially save $15,000 or more in net proceeds.
- 🏘️ Homeward appeals mostly to buyers in ultra-competitive markets needing fast, cash-backed offers.
- ⚖️ Total fees with Homeward often exceed traditional 6% brokerage rates.
- 🚪 Alternative options with lower listing fees and buyer rebates often result in much better financial results.
If you want to buy a new home before selling your current one—or compete with cash offers—Homeward might seem like a good idea. Their programs offer convenience, speed, and help you compete. But, there are big fees and hidden costs that can reduce your profits. Here, we look at the main features, real costs, and how Homeward compares to other options, like 1% full-service brokers with rebates.
What is Homeward?
Homeward is a real estate service for today’s fast housing market. Unlike traditional brokers or iBuyers, Homeward helps homebuyers and sellers with two big problems. It helps if you want to buy a home before selling your current one. And it helps if you cannot compete with cash offers. Homeward does not buy your current home, unlike an iBuyer. Instead, it acts like a financial bridge. They use their money to buy your next home right away. This lets you move in before your old home sells.
They offer these main services:
- All-cash offers: Homeward lets you make strong offers without conditions, using their money.
- Buy before you sell: You buy your next home first, move in, and then sell your current home. This means you do not need temporary housing or rushed decisions.
This service is good for people moving up to a new home. It also suits those moving fast for jobs. And it helps anyone in a hot market where homes sell fast and many buyers compete.
How Homeward’s Programs Work
Homeward uses real estate tech and financial services to offer two main programs: the Buy Before You Sell program and the All Cash Offer program. Here is how each works.
Buy-Before-You-Sell Process
The Buy Before You Sell option is for homeowners who need money from their current home to make a strong offer on their next one.
It works like this:
- Get Approved: First, Homeward approves you fully. This includes checking how much equity you have in your current home.
- Shop and Make Cash Offers: After approval, your Homeward real estate agent (or a partner agent) makes cash offers for you.
- Homeward Buys the Home: If your offer is accepted, Homeward purchases the home in cash.
- You Lease the Home: You pay rent based on the home’s value. This lasts until you sell your old property.
- You Buy it Back: Once your old house sells, you get a mortgage. You can use Homeward Mortgage or another lender. Then you officially buy the home from Homeward.
This system makes your move easy. It also helps you get the best price for your current home. This is because you do not have to take the first offer.
All-Cash Offer Program
In markets where few homes are for sale, or where many buyers compete, timing matters most. Cash offers usually win over offers that need a loan. This is because cash offers are faster and more reliable. Homeward’s All-Cash Offer program gives you more power to negotiate. It does this even if you do not have a lot of cash on hand.
Here is how it works:
- Get Homeward’s Credit Approval: Once approved, you can make offers fully backed by Homeward’s cash.
- Make Strong Offers: You will shop for homes with your agent. Then you use Homeward’s cash to make offers that are more likely to be accepted.
- Homeward Buys the Home: When an offer is accepted, Homeward pays for the property completely. This allows for a fast close.
- Get a Mortgage to Buy the Home Back: You then pay Homeward back. You do this by buying the home from them with a loan, usually within 30 to 60 days.
This plan avoids sale conditions. These are often deal-breakers in competitive talks. And it gives you an important time advantage.
What Are Homeward’s Costs?
Homeward offers convenience and helps you compete, but it costs money. Traditional brokers usually charge a 5–6% commission, split between buyer and seller agents. Homeward, though, adds many more fees.
| Fee Type | Cost to Buyer/Seller |
|---|---|
| Service Fee | Up to 2.4% of property price¹ |
| Leaseback Rental Fee | ≈ $50/day per $100K of value² |
| Duplicate Closing Costs | Yes |
| Homeward Mortgage Incentive | Small discount if you use their lender |
| Agent Commission | Still applicable (usually 3% each side) |
Service Fee
The main charge is a 2.4% service fee. This greatly increases the cost of the sale. For example, on a $500,000 home, you pay $12,000 right away. This is in addition to normal agent commissions.
Leaseback Costs
If you have not sold your current home, you also pay leaseback rent. The rent is about $50 per day per $100,000 of the new home’s value. These daily costs add up fast. For a $500,000 home, that is $250 each day. This means $7,500 for just 30 days.
Dual Closings
You are basically doing two sales. First, Homeward buys the home. Then you buy it from them. So, you pay double closing costs, like for title insurance, escrow, and lender fees. These usually add $5,000–$10,000 to your total cost.
Agent Commissions
Even with Homeward, you still pay full real estate agent commissions. This is usually 3% to the listing agent and 3% to the buyer’s agent. You pay this unless you agree otherwise.
When you add up all these costs, even agents who charge 6% might seem cheaper. This is especially true if you look at lower-fee options with rebates.
Who Might Benefit from Homeward?
Homeward is costly, but it helps in certain cases. Good candidates for their services are:
- 🔥Buyers in Hot Markets: Cities like Austin, Denver, or Seattle often have many buyers competing. In these places, cash offers are much stronger.
- 💼Job Relocators or Time-Pressed Buyers: If you need to move fast, buying first means you will not miss out on homes for sale.
- 💰Equity-Rich Homeowners: People who have a lot of equity in their current home. But they may not have much cash to make a down payment.
- 🏡Homes That Will Sell Quickly: The shorter you lease, the less rent you pay. So, this works well for homes that sell fast.
Who Should Avoid Homeward?
For many buyers and sellers, Homeward might not be the smartest financial choice:
- ❌Low Equity Homeowners: They have little flexibility, so extra fees are harder to pay.
- ❌Buyers Looking to Maximize Net Proceeds: Service fees raise sale costs. Other options offer better returns.
- ❌Buyers Who Can Handle Contingencies or Use Bridge Loans: These are cheaper than Homeward’s rent and double closing costs.
- ❌Homes in Slower Markets: These homes might take longer to sell. This means higher leaseback costs and more risk.
Is Homeward Worth the High Fees?
To see if Homeward makes financial sense, let’s look at an example with a $500,000 home:
- Service Fee (2.4%): $12,000
- Leaseback for 45 Days (@ $50/day per $100K): ~$5,625
- Double Closing Costs: ~$5,000–$10,000
- Standard Agent Commission (6%): $30,000
- Total Extra Costs with Homeward: $52,625–$57,625
Now compare that with a 1% full-service listing broker with a buyer rebate:
- Listing Agent Fee (1%): $5,000
- Buyer Rebate: Up to $5,000 back
- Bridge Loan Strategy or Delayed Close: $0–$2,000
- Net Buyer/Seller Savings: $20,000–$30,000+
Homeward offers great speed and ease. But it quickly becomes clear that cheaper services can save you tens of thousands of dollars per sale.
Homeward vs. Other Options
Here is how traditional brokers, Homeward, iBuyers, and 1% listing services with cash and rebate offers compare.
| Company/Model | Listing Fee | Buy-Before-Sell | Cash Offer | Estimated Buyer Costs |
|---|---|---|---|---|
| Homeward | 3%+ | Yes | Yes | High (plus service + rent) |
| 1% Listing + Buyer Rebate Broker | 1% | Yes (via bridge loan or mortgage coordination) | Yes (via partners) | Low (plus discounts) |
| Traditional Brokerage | ≈6% | Rare | Rare | High with no rebates |
| iBuyers (Opendoor, etc.) | 5–10% | No | Yes | Often lowest net proceeds |
Real Customer Reviews on Homeward
What customers say can show how clear the service is, how fast they respond, and what buyers can expect.
Pros Shared by Homeward Clients:
- 👍 “We wouldn’t have gotten the house without the cash offer.”
- 👍 “We loved being able to move only once.”
- 👍 “The team was good at keeping us updated and making it work smoothly.”
Common Complaints:
- ⚠️ “Wasn’t told upfront how much we’d lose in fees.”
- ⚠️ “Too many different closings and steps—confusing and tiring.”
- ⚠️ “Was not worth it when we found out about buyer rebates later.”
If you care most about getting things done fast, Homeward works. But buyers who know about money often feel they missed out on cheaper options.
FAQs About Homeward
Is Homeward the buyer of the new home?
Yes, they buy the home under an LLC. Then they sell it to you when you are ready.
Can I use my own mortgage company?
Yes, but Homeward might give small perks if you use their own loan services.
Is the leaseback rent flexible or negotiable?
No. A fixed formula uses the home’s value to figure out the daily rent costs².
What happens if I decide not to purchase the home Homeward bought for me?
You might face penalties and default terms. Always read your contract details carefully.
Can I stack buyer rebates or commission discounts with Homeward?
No. Homeward does not usually let you combine outside commission rebates or deals.
When Should You Use Lower-Fee Real Estate Services Instead?
You should think about a 1% commission or rebates-backed broker if:
- 📊 You are in a stable or cool market where conditions are still fine.
- 💵 You want to save as much money as possible.
- 🧠 You are okay with possible delayed closings or bridge loans.
- ⚖️ You want professional help but do not want high sale fees.
Try Our SELL + BUY Savings Bundle
Our combined services offer:
- ✅ Full-service listings for 1% commission
- ✅ Buyer rebates up to 1%
- ✅ Cash-offer programs through our partners.
- ✅ Help with bridge loans and one-on-one coaching.
Talk to an expert now — Your free, no-pressure chat is just one click away.
Final Take: Should You Use Homeward?
Homeward can be helpful in the right case. This is true especially if you need speed and ease in a very competitive market. But for most homeowners moving up, or for buyers in calmer areas, the extra costs are much higher than the benefits.
Choosing an agent with rebates, or a 1% listing service with bridge loan options, can help you get the most money back. And you still get support. Convenience is good. But your equity is good too.
Citations
- Wong, D. (2022). iBuyers like Homeward may charge a service fee of up to 2.4%—more than some discounted brokerages. Inman.
- Buchwald, B. (2023). Hidden Costs in Bridge-Style Services Can Add $5,000–$15,000 Every 30 Days. RealTrends.
- National Association of Realtors. (2023). Existing-Home Sales Statistics. https://www.nar.realtor/research-and-statistics
