Homeowners unpacking boxes in their sold house under a rent-back agreement while building new nearby

How Rent-Back Agreements Help Bridge the Gap When Building

July 03, 2025•3 min read

How Rent-Back Agreements Help Bridge the Gap When Building

by Steve

Selling your home before your new one is ready? You’re not alone. This timing gap is one of the most stressful parts of building a new construction home in DFW. But there’s a smart solution many sellers use: a rent-back agreement.

Here’s how it works—and how it can save you from moving twice, scrambling for storage, or crashing at your in-laws’ place.

What’s a Rent-Back Agreement?

Also known as a “leaseback,” this agreement lets you sell your home to the buyer and then rent it back for a set period—usually 30 to 60 days. It’s written into the sale contract.

Why it works:

Gives you time to finish your new build
Avoids double moves
Reduces storage and short-term rental costs
Keeps kids in the same school during the transition

Neighborhood Spotlights: Where It’s Common in DFW

Frisco & McKinney

With long build timelines for custom homes, many sellers in Frisco opt for rent-backs. Buyers are often flexible here, especially if they're moving up from an apartment or living locally.

Grand Prairie & Mansfield

More buyers are using FHA or VA loans in these areas. Rent-back works well if the buyer’s financing timeline aligns with your build.

DeSoto & Cedar Hill

Builders in southern Dallas County often run into weather or permitting delays. Rent-backs give you breathing room.

DFW Market Trends: Why Timing is Tight in 2025

With inventory still tight in Q2 2025, many builders are operating with 8–10 month build times. At the same time, homes under $500K are going under contract in 10–14 days across much of DFW.

That means you could sell quickly—but wait months to move in.

Use our Home Seller Score to gauge your home's readiness and ideal timeline.

Cost Breakdown: What to Expect With Rent-Backs

Typical terms:

$30–$100/day in rent depending on home value
Buyer holds insurance
Security deposit often required

Hidden savings:

Avoid storage unit: $150–$300/month saved
Skip short-term rental: $2,000–$3,500/month saved
One move instead of two

Get organized early using our Home Seller Checklist.

Builder & Community Insights

Many DFW builders are familiar with rent-back strategies and can time final inspections or closings around them.

If you’re working with builders like Highland Homes, First Texas Homes, or Bloomfield Homes:

Ask if they offer flexible closing dates
Confirm delivery windows
Attend the New Construction Webinar to plan better

Also consider our New Construction Rebate Program to save money during your transition.

Financing & Legal Tips

Talk to your lender and agent early. Some loan types restrict rent-back periods (FHA max is 60 days).

Make sure your rent-back is:

In writing
Includes insurance coverage
Defines rent, deposit, and move-out date

Get pre-approved before you list: Start here.

Final Thoughts: Rent-Backs Can Bridge the Gap

If your new build isn’t done yet, a rent-back agreement gives you breathing room. It’s not complicated, but it does take good planning.

Talk to your agent, your lender, and your builder. Set realistic timelines. And don’t forget—you can always explore your options on the Lone Star Living App.

Download the Lone Star Living App now to stay ahead of your move, browse homes, and track builder incentives.

You're Always Home With Refind Realty!