Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity Home Sale-Leasebacks What Is a Sale-Leaseback? Guide to Sell-and-Stay Agreements Updated Mar 18, 2025 4-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Megan Hanna Written by Megan Hanna Expertise: Personal loans, home loans, credit cards, banking, business loans Dr. Megan Hanna is a finance writer with more than 20 years of experience in finance, accounting, and banking. She spent 13 years in commercial banking in roles of increasing responsibility related to lending. She also teaches college classes about finance and accounting. Learn more about Megan Hanna Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® A sale-leaseback is an arrangement where you sell your home and then lease it back so you can keep living in it. This approach can provide you with a much-needed cash infusion while letting you remain in your home. In short, you get liquidity now—but you may have long-term costs to consider. Is it the right move for you? Let’s break it down. Table of Contents What is a sale-leaseback? How does it work? (5 steps) Is a sale-leaseback right for you? What is a sale-leaseback? A sale-leaseback is a simple idea with a big impact. Instead of moving out, you sell your home to a buyer and then sign a lease to continue living there. This option is ideal for homeowners who need cash for emergencies, debt consolidation, or to unlock home equity without the hassle of moving. Pros Immediate cash infusion Continue living in your home (sell-and-stay) No need to relocate Cons You lose full ownership and potential long-term appreciation Lease costs can add up over time Our take: If you’re struggling financially or need a quick cash boost—for instance, if you’re worried about a nursing home taking your house—a sale-leaseback might be a smart choice. It works best for those who love their current home but need funds to cover urgent expenses. However, if you’re planning on long-term investment growth in your property, this option might not be ideal. Residential real estate is a legitimate option, but be wary of scams and, ideally, find a real estate agent or other professional with expertise in this space to guide you. Erin Kinkade , CFP®, ChFC® How does it work? (5 steps) Here are the steps required to obtain a home sale-leaseback: Property valuation: You’ll get an appraisal to determine your home’s market value. This step is crucial in understanding how much cash you can access. Negotiation and sale: Negotiate a fair sale price with a buyer, and work with experts who understand the market and your personal situation. Rent-back arrangement: Sign a lease agreement that lets you continue living in your home, and discuss lease terms, including duration, rent, and any future options. Cash injection: Receive the proceeds from the sale. This cash can help pay off debts, cover emergencies, or invest in other opportunities. Ongoing lease: Stick to the lease terms, which include monthly rent and other conditions. Be sure you understand that your long-term costs are now part of a lease, not a mortgage. Is a sale-leaseback right for you? Who benefits most? Homeowners in a financial pinch: If you need cash fast but can’t—or don’t want to—move. Those with high home equity: If you own a decent portion of your home, you can access a significant amount of cash. People looking for flexibility: The sell-and-stay option lets you keep enjoying your familiar neighborhood and community What to consider: Financial goals: Are you looking for a short-term cash boost or a long-term financial strategy? Future plans: Think about whether you plan to stay in your home for the long haul or this is a stopgap solution. Cost vs. benefit: Evaluate whether the lease payments over time are worth the immediate cash injection. Read More How to Rent Back Your Home After Closing Our opinion We believe a sale-leaseback can be a practical solution for those facing short-term financial hurdles. It offers a unique way to unlock the value of your home without the disruption of moving. However, if you value long-term property ownership and the benefits that come with it, you might want to explore other options. If you think this option makes sense for you, Truehold stands out as the best overall home sale-leaseback company. With a streamlined process and a commitment to transparency, Truehold makes it easy to unlock the equity in your home while still enjoying the comfort of your familiar surroundings. Its flexible lease terms are tailored to your unique financial needs, making the sell-and-stay option accessible and hassle-free. We value Truehold’s customer-centric approach—its team truly understands the challenges homeowners face when you need quick cash without the upheaval of moving. With competitive pricing, clear terms, and excellent support, Truehold is the smart choice for anyone looking to secure a cash infusion while remaining in the home they love. Read More Best Home Sale-Leaseback Companies Final thoughts A sale-leaseback arrangement (or sell-and-stay option) is not for everyone, but it can be a lifesaver for homeowners who need quick cash while staying put. By understanding the pros, cons, and step-by-step process, you can make an informed decision that aligns with your financial goals. Remember, every situation is unique. Consider speaking with a financial advisor to weigh all your options and ensure that this solution is the right fit for your circumstances.