Homeward Cash offer benefits agents by giving buyers an edge in one of the most competitive markets in the country
MIAMI, May 10, 2022 /PRNewswire/ — Homeward, a modern real estate finance company that empowers real estate agents to empower every customer with money, has expanded its markets to include Miami, Florida.
Miami was an obvious choice for Homeward, which already operates in Texas, Georgia, Colorado, Arizonaand other markets Florida. In March 2022, approximately 30% of Miami single-family homes were purchased with cash. And more than 50% of townhouses and condos were purchased with cash, signaling record competition. (The source)
“Miami real estate agents and their clients – like so many large metropolises in the United States – face unprecedented challenges with rising prices, competitive inventory and an investor-dominated market. We are delighted to partner with agents and customers in Miami to provide a solution that will make buying a home a reality for more people,” says CEO and Founder of Homeward, Tim Heil. “By transforming the traditional buyer into a cash buyer, we are answering the question that agents face daily: How can I buy a home in this market? We are enabling agents to change the conversation and, in turn, ‘helping their clients buy their next home.’
This announcement follows Homeward’s recent expansion into Arizona in January, and a successful Series B fundraising in May 2021. The startup obtained growth capital from $371 millionincluding $136 million in equity and $235 million indebted to achieve several growth objectives.
“We’re really focused on how to expand our services to other markets,” says Heyl. “Having successfully optimized and evolved not only our product, but also our support teams to meet agent and customer demand, we are ready and excited to support new markets such as Miami.”
The Homeward Cash offer was designed to eliminate the limitations of the traditional financed offer, transforming the everyday buyer into a cash buyer. When partnering with real estate agents, Homeward will make a cash offer on behalf of the agent’s client. Next, customers obtain a mortgage, either from Homeward or the customer’s preferred lender, and repurchase the home from Homeward.
“Miami real estate agents and their clients are tired of the endless competition of the past few years, with no relief in sight. In March alone, 64% of properties in Miami received several offers,” said Brian Gubernick, Real Estate Director of Homeward. “Sellers aren’t just looking for the highest offer – they’re looking for the strongest offer they can count on to not fail. By eliminating financing, home sale and appraisal contingencies, our buyers from Homeward go under contract more often, making it a win-win for all parties.”
Growth in every direction except housing
Over the past ten years, Miami experienced a 14% increase in population. Dubbed one of America’s “boomtowns”, household names like Blackstone, Goldman-Sachs and even Subway choose to open offices in Miami. With a rising population, in February the region saw a 29.7% increase in the average cost of a home year-over-year, but it still trails major cities like New York, San Francisco and others, supporting its appeal.
The cost associated with population growth has strained housing supply; from March, Miami Year-over-year single-family home inventory is down 29.2%, which means more business, more people and fewer homes.
Three companies, one great experience
Homeward has launched two affiliates – Homeward Mortgage and Homeward Title – both of which are now licensed to operate in Florida.
“Traditionally, when you buy a home, you go from company to company to close the deal, often paying thousands of dollars in closing costs,” says Gubernick. “At Homeward, we believe we can reduce costs for clients, without sacrificing agent commissions. By having the Homeward title and mortgage under one roof, we are able to minimize redundancy, streamline the process and, therefore, save money for the buyer.”
“Consolidating services saves buyers money, time and effort,” says Gubernick.
Partnership with real estate agents
Request Miami real estate will only increase as the population and job opportunities increase. Real estate agents face an overwhelming need for innovative solutions to help their clients.
“With our entry into Floridawe continue to evolve and expand our services while keeping the realtor at the heart of our mission,” says Gubernick. “So many real estate innovators are looking to diminish or replace the traditional real estate agent, but we believe the agent will continue to be the foundation of the transaction, guiding clients through this major purchase.”
Homeward’s solutions are available to all agents, but the company strategically partners with top brokers and teams, providing dedicated support, white labeling, and digital marketing tools to help them generate more leads.
Homeward continued to build on last year’s success. Through February 22, the company has seen an increase in revenue of approximately 5x YoY while launching partnerships with over 50 brokerages across the country.
“Our team at Homeward are really happy to help Miami agents and their clients,” says Heyl. “We know that buying a home is a huge financial decision for clients and a complicated process for agents. We look forward to providing a better and more convenient experience.”
Create customer-centric solutions
Homeward’s two solutions — Buy before you sell and Buy with cash — involve two transactions. Homeward buys houses with money on behalf of a client, then the client obtains a mortgage and buys the house back.
Cash offers are four times more likely to beat funded offers. Compared to the national average of 27% of U.S. home sales conducted in cash, in March, Miami saw cash offers represent 52% of condominium sales and 28% of single-family homes. For Miami homebuyers, staying competitive with a cash offer has never been more important.
Buy before you sell customers get the competitive advantage of money and the opportunity to move into their new home before listing their old home. It gives them the confidence and certainty they need to put their old home on the market.
“Although interest rates are rising, the market is showing signs of continued competition,” Gubernick said. “From the first-time home buyer struggling to get their foot in the door, to the client who wants to buy a vacation home in South Floridathere are countless ways customers and agents can leverage our Homeward products to win in this market.”
The expansion into Florida marks an exciting step towards Homeward’s goal of launching up to 20 new markets by the end of 2022, with plans to expand into the coastal markets of Oregon and Washington Later this year.
Homeward is a modern real estate finance company that helps realtors and their clients overcome the limitations of traditional mortgages. The Homeward Cash offer eliminates financing, home sale and appraisal risk, allowing buyers to earn cash and, if necessary, buy their new home before selling their old one. Homeward has an office in Austin, TX, but operates with a fully remote workforce. If you are an agent, please visit https://landing.homeward.com/fl/florida to learn how to make every customer a cash buyer.
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