Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity Home Sale-Leasebacks 3 Ways to Sell Your Home and Still Live in It Updated Jan 23, 2025 9-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Timothy Moore, CFEI® Written by Timothy Moore, CFEI® Expertise: Bank accounts, credit cards, taxes, insurance, personal loans Timothy Moore is a Certified Financial Education Instructor (CFEI®) specializing in bank accounts, student loans, taxes, and insurance. His passion is helping readers navigate life on a tight budget. Learn more about Timothy Moore, CFEI® Reviewed by Kyle Ryan, CFP® Reviewed by Kyle Ryan, CFP® Expertise: Comprehensive financial planning, tax planning, investment planning, retirement planning, estate planning Kyle Ryan, CFP®, ChFC®, is a co-owner and financial planner at Menninger & Associates Financial Planning. He provides his clients with financial products and services, always with his client's individual needs foremost in his mind. Learn more about Kyle Ryan, CFP® While it’s not the most common path for homeowners, selling your home but still living in it is possible with three options: a post-occupancy settlement agreement, a home sale-leaseback, or a reverse mortgage. Each has pros and cons to consider. We’ll walk you through these options and help you determine which, if any, is the right strategy for you. Table of Contents 1. Post-occupancy settlement agreement 2. Reverse mortgage 3. Home sale-leaseback Which option is best for you? 1. Negotiate a post-occupancy settlement agreement Best for: Selling your house but still living in it rent-free for a short time Selling your home and pocketing the profits—while still living there rent-free—sounds like a dream come true. But is it possible? As a seller, you may be able to negotiate a short-term stay in your home after closing, typically a few days to a few weeks. Real estate agents call this a post-occupancy settlement agreement (aka post-closing possession or post-closing occupancy). For this to work, both the seller and buyer must agree to the terms and conditions by signing an addendum to the sale contract. A typical addendum will include information such as: Who’s responsible for insurance The date by which the seller must vacate the property Daily rent charges and security deposit, if applicable Buyers who let sellers stay in the home after closing typically charge rent, but if you’re a seller and have the upper hand in negotiation, you may be able to agree to a short-term stay without paying rent. Sellers might ask for post-closing possession for several reasons, including: Waiting to close on another house Waiting for construction to finish on their new house Needing more time to pack and move Wanting their child to finish out a school year before moving Waiting until a new job starts near their new home Pros and cons for the buyer As the buyer, the major advantage of agreeing to this is that, in a competitive market, the seller may choose you over another offer where the buyer refuses this agreement. The cons to consider include the risks that the sellers: Refuse to leave when they’re supposed to Damage your property in the interim The addendum should provide detailed protections for the buyer against these risks, but the internet is full of horror stories for buyers who agree to this. Proceed with caution. Pros and cons for the seller Post-settlement possession is designed for the seller—for whatever your reason for wanting to stay longer. But there are downsides to consider. If you’re desperately trying to sell your home but demanding post-closing occupancy, you may have a harder time getting a buyer. This means your house could sit on the market longer. And if you lock into a post-closing occupancy agreement, you’ll likely need to give the buyer a security deposit, purchase renters insurance, and pay a daily rent. 2. Reverse mortgage Best for: An option to sell your house but live in it until you die Short-term stays after selling your home may be possible, but they’re rarely rent-free. However, there’s still a way to tap into your home’s equity and live in it rent-free, potentially for the rest of your life. It’s called a reverse mortgage, an option available to homeowners 62 and older. Though this is not technically selling your home, it lets you get the cash for your home as if you’ve sold it. But reverse mortgages have risky implications down the road for you or your beneficiaries. How a reverse mortgage works A reverse mortgage allows you to borrow money using your home as collateral. Unlike a traditional mortgage, where you make monthly payments to live in your home, a reverse mortgage involves the lender paying you money—either as a lump sum or in ongoing installments. You’ll still live in the home (and maintain the title) and be responsible for the homeowners insurance and property taxes. You won’t owe anything to the lender until you die, sell the home, or move out. But here’s the catch: You’ll owe what you borrowed, plus interest. That means that when you (or your beneficiaries) sell the home, you may pocket very little—or nothing at all. If my client were considering a reverse mortgage, I’d first ask whether they have other assets to tap into. While reverse mortgages once had a bad reputation, consumer protection laws have made them more credible today. If accessing home equity is the only option, consider your cost of living and whether a home equity loan or HELOC might suffice. If you need consistent income and wish to stay in your home, a reverse mortgage can be a great option. However, selling and downsizing or renting may leave you with more assets for your beneficiaries. That said, the emotional tie to a home is understandable and should also be weighed. Kyle Ryan , CFP®, ChFC® Pros and cons of a reverse mortgage Reverse mortgages offer a number of benefits, but they’re also a huge financial risk—so risky that potential borrowers must participate in reverse mortgage counseling before moving forward. Consider these pros and cons: Pros Access to cash otherwise tied up in your home equity No monthly loan payments No income taxes on cash proceeds Ability to remain in your home Cons High potential interest on top of loan repayment Origination fees and closing costs Risk of foreclosure Loss of equity in home over time If you’re unsure whether a reverse mortgage is right for you, consider alternatives, such as a home equity loan or line of credit (HELOC). 3. Home sale-leaseback Best for: Selling your house and renting it back To recap, a post-closing occupancy lets you briefly live in your home after selling it, but you must leave quickly. A reverse mortgage has no monthly payments, but you don’t actually sell your home. So is there a way you can sell your home and still live in it as a true renter? Yes. It’s called a home sale-leaseback, and it may be the best option for you. How does a home sale-leaseback work? Terms, conditions, and eligibility requirements for home sale-leasebacks can vary by company and contract. The typical home sale-leaseback, also called a residential leaseback agreement or a sell-and-stay program, is straightforward. You, as the homeowner, sell your home to a leaseback company and enter into a lease agreement, meaning you continue living in your home—but now you pay rent. Selling your home frees up the cash you have tied up in equity, and you’re no longer responsible for property taxes, homeowners insurance, HOA fees, or maintenance and repairs. Not all companies offering home sale-leasebacks are equal. Truehold, for instance, offers contracts with clear terms about the length of the contract, your right to renew, monthly rent costs, who’s responsible for various fees, and eviction guidelines. Other leaseback companies may not provide as much transparency. To ensure you work with one of the best home sale-leaseback companies, read customer reviews, check the Better Business Bureau, and speak with a financial advisor. Why get a home sale-leaseback? Why would you want to sell your home and still live in it through a stay-and-sell program? Home sale-leasebacks are popular for people in a number of scenarios, including homeowners who: Need cash to cover medical costs while aging in place Need money to get out of debt or cover major emergency expenses but don’t want to move from their home Are tired of covering regular homeownership costs but are happy with where they live Are house shopping but need funds to cover closing when they find the right home Are building a home but need funds to cover construction costs now Pros and cons of home sale-leasebacks Weigh these pros and cons before moving forward with a home sale-leaseback: Pros Access to equity in home Ability to remain in your home No responsibility for property taxes, homeowners insurance, maintenance and repair costs, or HOA fees Fast closing and funding Cons Potential closing costs and fees Rent increases over time Potential for eviction No equity built through rent payments Which option should you choose to sell your home and still live in it? You have multiple options for selling your home and staying in it for a short time—or as long as you live. So how do you know which option is right for you? If…Your best option might be… You’re tired of paying home repair costsHome sale-leasebackYou need a little extra time to move out of your homeShort-term negotiationYou need money to close on a new homeShort-term negotiation or home sale-leasebackYou have rising medical costs but want to age in placeReverse mortgage or home sale-leasebackYou want to stay in your home until you dieReverse mortgage When a short-term negotiation is best A short-term negotiation is best if you only need to stay in your home for a few days or weeks after selling. This may be because: You need more time to pack and move You need to use the proceeds from selling your house to close on your next one You took a new job in a new city, but you don’t want to move until the job starts The school year is almost over, and you don’t want to move your child from their class When a reverse mortgage is best A reverse mortgage is ideal for homeowners 62 and older who have built equity in their home and want to access it now. This may be ideal when: You have significant equity in your home but no liquid funds to cover retirement costs You have rising medical costs and need access to funds to cover them You don’t have beneficiaries you’re worried about leaving your home or a nest egg to For personalized service and an excellent customer experience, consider Longbridge Financial, our team’s top-rated reverse mortgage provider. Longbridge is known for its tailored approach, competitive terms, and stellar reviews from thousands of satisfied customers. Check out our highest-rated reverse mortgage lenders. When a home sale-leaseback is best Home sale-leasebacks are the best true option for selling your home and still living in it like a tenant. This is ideal for homeowners who: Need to tap into the equity of their home but don’t want to move out Are tired of being responsible for homeownership costs Are building a home and need funds now—or are house shopping, with no real rush, but know they’ll need funds to make a down payment on the new home If you’re considering this option, Truehold is our team’s highest-rated home sale-leaseback company. Truehold stands out for its flexibility, fair valuations, and seamless process, making it an excellent choice for homeowners who want to sell without leaving their beloved home.