Buying a new home when you already own one can be challenging. Most homeowners can’t afford two mortgage payments and need to unlock the equity of their current home before shopping, but if the home sale falls through or you can’t find a new place in time, you could end up in a sticky situation.
Calque’s buy-before-you-sell programs make buying a new home easier by making it possible for you to make a noncontingent offer. The company offers two ways to buy before you sell:
- Trade-In Mortgage: Use a Calque lending partner to unlock your home’s full equity and sell on the open market with a guaranteed backup offer.
- Contingency Buster: Use Calque’s guaranteed backup offer before selling to buy out your current mortgage, lowering your debt-to-income ratio (DTI).
Both programs include a $2,000 administrative fee and 1% of the Purchase Price Guarantee (PPG). Homeowners pay these fees when their old home sells, plus associated realtor fees and closing costs.
You may want to give Calque a shot if you want to make a stronger offer on a new home, but it’s essential to understand that it will cost more in the long run.
🔎Calque at a glance
Overall rating: No third-party reviews available
Pros and cons:
Pros:
- Two buy-before-you-sell programs
- Potential for better non-contingent offer
- Work with any real estate agent
- Guaranteed backup offer
Cons:
- Fees may offset convenience
- Limited customer feedback available
Company Details:
- Privately owned
- Founded in 2020
- Headquartered in Austin, TX
Available Locations: 48 contiguous states + DC (excludes HI, AK)
Who Calque is best for
Calque’s buy-before-you-sell programs are best for homeowners who don’t have a ton of extra capital and want to make a competitive offer on their new home.
You may want to look into the Trade-In Mortgage program if you:
- Don’t have enough saved up for a down payment on a new home
- Have significant equity in your current home
You may want to look into the Contingency Buster program if you:
- Have enough saved up for a small down payment on a new home
- Need to lower your DTI to make a more attractive offer
You may not want to use Calque if
While Calque’s programs allow more homeowners to make noncontingent offers, they aren’t the best choice for everyone.
The Purchase Price Guarantee is typically only 86-87% of a home’s full-market value. If you have to take the PPG, you won’t make as much profit if your home doesn’t sell within the 150-day listing window.
You might want to look elsewhere if you:
- Don’t want to risk selling below fair market value (FMV)
- Have time to consider multiple options
- Don’t want to pay extra fees on top of realtor costs
Pros and cons of using Calque
Pros
- Ability to make non-contingent offers
- Avoids the hassle of coordinating two closings
- Provides a backup buyer within 150 days
- Homeowners can tap into home equity before selling
- Transparent fees paid only when the home sells
Cons
- Purchase Price Guarantee (PPG) is typically 86-87% of market value
- 1% fee plus $2,000 charge can add up
- Does not serve HI or AK
Bridge loan and cash buyer alternatives to Calque
| Company | Listing fee | Avg. customer rating |
|---|---|---|
| Clever Offers | None | 5.0/5 (3,000+ reviews) |
| Calque | $2,000 + 1% at closing | N/A (no third-party reviews available) |
| Orchard | 1.9% service fee | 4.3/5 (800+ reviews) |
| Knock | $1,850 loan fee + 2.25% at closing | 4.8/5 (800+ reviews) |
Calque is a strong contender when you consider the multiple program offers, decent fee structure, and ability to sell with any realtor. However, they aren’t the only buy-before-you-sell provider on the market.
Orchard’s flagship Move First program is similar to Calque’s Trade-In Mortgage. Move First makes it possible for customers to make a noncontingent offer on a new home, and the 1.9% service fee may cost less in the long run.
One downside of working with Orchard is that you must use one of the company’s approved agents, limiting your agent selection significantly.
Knock also offers a buy-before-you-sell model through its bridge loan program. These loans make it possible to cover the down payment on a new home, moving expenses, and home prep.
While bridge loans increase buying power and simplify selling your home, they come at a premium. Knock’s $1,850 loan fee, plus 2.25% at closing, is significantly higher than its competitors.
A significant drawback of using any buy-before-you-sell program is that you must pay typical realtor fees on top of program fees, which add up quickly.
Using a cash buying network like Clever Offers helps you unlock your home’s equity without paying fees on top of fees. Clever Offers connects you with the top real estate investors in your area to help you make the most on a cash deal for your home — without paying realtor or service fees.
How Calque works (step-by-step guide)
Calque offers two buy-before-you-sell options that customers can leverage to make a better offer on a new home, but the process is similar for each program.
Here’s how it works:
| Trade-In Mortgage | Contingency Buster |
|---|---|
| Step 1: Fill out a 5-minute questionnaire to see if you qualify for a Trade-In Mortgage. | Step 1: Fill out a 5-minute questionnaire to see if you qualify for the Contingency Buster program. |
| Step 2: Perform a virtual walkthrough with a Calque representative and schedule a home inspection. | Step 2: Perform a virtual walkthrough with a Calque representative. |
| Step 3: After the inspection and due process are complete, Calque offers qualified customers a Purchase Price Guarantee for around 85-87% of the home’s full value. (Typically 4-10 days) | Step 3: Calque offers qualified customers a Purchase Price Guarantee for the minimum amount needed for a noncontingent offer. (Typically under 48 hrs.) |
| Step 4: Get preapproved for a mortgage on your potential new home with a lower DTI. | Step 4: Get preapproved for a mortgage on your potential new home with a lower DTI. |
| Step 5: Make a competitive noncontingent offer and close on your new home. | Step 5: Make a competitive noncontingent offer and close on your new home. |
| Step 6: List your original home on the open market with the realtor of your choice. | Step 6: List your original home on the open market with the realtor of your choice. |
| Step 7: Sell on the open market within 150 days. If it doesn’t sell, you can accept Calque’s PPG and still receive net profits above the guarantee. | Step 7: Sell on the open market within 150 days. If it doesn’t sell, you can accept Calque’s PPG and still receive net profits above the guarantee. |
Who qualifies for Calque?
To qualify for Calque’s buy-before-you-sell programs, your home must be:
- A single-family home, or a duplex/townhome, modular home, or condo (with restrictions)
- Owner-occupied and your primary residence
- Zoned as residential
- In marketable condition
- Connected to working utilities
Homes that don’t meet Calque’s program criteria include:
- Commercial properties
- Subdivisions with active new constructions
- Mobile/manufactured homes
- Condo hotels or co-ops
- Rental properties
- Short sales/foreclosures
- Homes in disrepair that aren’t ready for sale
Your home also may not qualify for Calque programs if you live in a 55+ community or a town with fewer than 5,000 residents, or if your home has already been on the market for 100 days.
The bottom line: Should you use Calque?
Calque offers two solid choices for sellers who need more liquidity and a lower DTI to purchase a new home. Both programs have lower fees than other buy-before-you-sell options, giving buyers more purchasing power with less cost.
However, you need to weigh the convenience against potentially selling your home for less than it’s worth. If your home doesn’t sell in the 150-day timeframe on the open market, there’s a chance you won’t make more than 85-87% of your home’s value.
Accepting a cash offer might not net you fair-market value, but it can free up your home’s equity to help you make a better offer on your next home.
If liquidity is your number one concern when buying a new home, consider a cash offer network like Clever Offers. The digital platform connects homeowners with the top cash buyers in their area (including national companies like iBuyers) to help them close quickly for cash. Take a short quiz to get started now!