Buying and Selling Just Got Easier

Posted on Mar 04, 2022

In today’s real estate market, it can be challenging to win your next home. Most sellers receive multiple offers. They leverage them against each other to eliminate contingencies and increase profits. The real estate market conditions are made increasingly challenging due to fewer homes on the market than ever before.

What are home buyers and home sellers like you supposed to do with market conditions like this? Sell your home and relocate to a rental while you search? Submit offer after offer just to watch your dream home remain out of reach? Wait until market conditions change?

Knowing these are all poor options, we set out to develop solutions aimed at fixing this broken transaction. Today, we’re announcing Cash Advantage™ and Convenience Offers™.

Our new offerings help home buyers stand out in this tough market and land their next home – whether they’re upgrading, downsizing, or buying for the first time. For those who currently own a home, our products will give them a way to move quickly without being held back by the home they need to sell.

With the launch of these new products, we felt the time was right to sit down with Mike to explain why these products are the solutions to today’s market conditions, and why now is the right time.

Cash Advantage™ for Home Buyers.

Why is being able to pay for a home in cash so essential in a competitive market?

Cash is king in real estate because it eliminates many of the contingencies that can otherwise hold up the closing process and potentially kill the sale. That’s why cash offers are at least 3x more likely to be accepted by a seller than a comparable offer with financing contingencies. When sellers accept cash offers, they lower the risk of closing complications.

In a competitive market, sellers are also dealing with complicated deadlines. If the buyer’s financing or appraisal were to fall through, it can create a lot of stress and extra work for sellers. Now that they've sold their home, they need to find a new home and qualify for that loan. If their home sale falls through, it starts a 'domino effect' of collapsing any following deal.

How does Cash Advantage™ give buyers an advantage when they make an offer?

Standing out in the competitive market is incredibly difficult right now, and being able to make a strong cash offer can mean getting the home of your dreams – rather than losing out on yet another home.

So how exactly does the Cash Advantage™ program work?

Buyers use our funds, which are then repaid upon closing. Houwzer makes an all cash offer with the option to assign the agreement of sale to the buyer. The buyer then works with Houwzer Mortgage to have funds ready for settlement. Once the buyer’s offer is accepted, our mortgage team works to set them up with a new mortgage at a competitive rate. If financing with the buyer falls through, we’ll honor the contract and buy the home – then relist it if necessary.

How much does it cost?

In order to make use of Houwzer’s Cash Advantage™ program, home buyers pay a flat $2,500 fee. In addition to the fee, the home buyer will need to prepare a 5% down payment and will need to be prepared to pay traditional closing costs.

Learn more about Cash Advantage

Convenience Offers™ for Home Sellers

How does Convenience Offers™ help home sellers? How does it make the home selling process less stressful?

There is always an element of uncertainty when selling a home. Having an offer firmly in your back pocket can allow you to move forward without having to worry about how quickly your home sells (or what will happen to your plans if the buyer backs out). The Convenience Offer gives sellers the flexibility to move quickly with a Houwzer-backed, all-cash offer on their current home. Unlike other brokerage-backed offers on the market, though, sellers can treat the convenience offer as a back-up option – and still go to market.

How does it work?

The offer is based on the Houwzer Estimated Value (HEV) – an assessment of your home’s fair market value. The offer will be slightly below market value to cover any additional transfer taxes and transaction costs if you choose to accept the offer and Houwzer buys your home. While holding the offer, your Houwzer listing team works to sell your home to a replacement buyer for maximum value on the market. You can use the Convenience Offer only when you want or need to.

If you take the Convenience Offer and don’t list your home, Houwzer will sell it. After paying for necessary fees, taxes, repairs etc. to sell the home, we’ll split the profit we make with you. You can rest easy knowing that we’re not trying to undervalue it.

Why else might a seller want to opt for the Convenience Offer?

Even in this competitive market where sellers can receive multiple offers on their home, the Convenience Offer allows for greater flexibility and confidence while selling. Sellers can make offers on their next home without worrying about home sale contingencies because they already have a guaranteed cash offer. It ensures that home sellers can move forward with their life, knowing that their home will definitely sell.

The Convenience Offer can also be used as leverage in negotiations with buyers. Having a cash offer on the table already ensures that buyers will need to work to stay competitive, rather than lowballing or tacking on contingencies.

If sellers take the Convenience Offer, do they still need to show their home?

For some sellers, the Convenience Offer will be a first choice – allowing them to skip the hassle of showings and endless negotiations. This can be an incredibly valuable asset to home sellers who may not have the flexibility to list their home for an unknown number of weeks.

How much does the Convenience Offers™ service cost?

The fee to home sellers for using Convenience Offers™ is $2,500. If Houwzer purchases your home, or you accept an offer from a replacement buyer, this fee is due at settlement.

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