January 06, 2022
As the battle for available homes has intensified, buyers across the board are struggling to find a way to win the home they want. Even existing homeowners – who want to take advantage of their surging home value – can’t seem to land their next home.
Of course, in a market like this, no one wants to sell their current home without having their next place lined up. And this only exacerbates the issue – as people sit on their homes, new inventory never comes to the market and the growing backlog of buyers fight over scraps.
Homeowners trying to buy their next home first are running into another roadblock: unless they can take on two mortgages or offer cash, they need to add a home sale contingency to their offer.
But contingent offers often lose in bidding wars because sellers want to avoid complications.
Tired of seeing homeowners get stuck, one modern real estate company is offering a solution. Houwzer’s new Buy Before You Sell product lets their clients use the company’s cash to win the bidding war on their next home, while letting them sell their old one later.
So how does Buy Before You Sell will help homeowners succeed in this market? Houwzer’s CEO Mike Maher spilled the details in this recent Q&A.
Once you’re approved, Houwzer will help you access your existing equity early and loan you the money to buy your next home in cash. A Houwzer Buyer Agent will help you find the right home, write up a compelling cash offer, and handle negotiations. As soon as your offer is accepted, you can list your old home or hold off until you've moved out.
Whenever you’re ready, our listing team will work to sell your old home for top dollar. Once the home is sold, you can use the proceeds to pay off the short term loan – or pocket the cash.
You’ll have 45 days after closing on your new home before you'll start paying interest on the money you've borrowed. A Houwzer Mortgage Advisor can help you set up a mortgage on your new home that can be used to pay back the short-term loan we gave you for the new home purchase.
All too often, single family homes are purchased by developers or 'Wall Street' who have the unfair advantage of cash on hand. Now our buyers will have the same opportunity that has always been limited to those with liquidity.
It takes a lot of the stress out of trying to line up the home sale and purchase just right. Real estate transactions have a lot of moving parts and when you go the traditional route of selling first, there’s a very real risk of hiccups and unforeseen circumstances that leave you scrambling for a place to live in the interim. Buy Before You Sell gives you the ability to figure out where you’re going and move into your next place on your own timeline without stressing about when you have to be out.
And of course, you’ll avoid the hassle of selling a home while you’re living in it. You won't have to deal with rounding up the family every time there's a showing request – or panicking because you left dishes on the counter.
We treat the home sale like any other listing client. We only charge a flat $5,000 listing fee to sell your old home, plus 2.5% to pay the buyer's agent. We differ from traditional brokerages here – other brokerages charge sellers a 6% commission which is split between the listing and buyer brokerages.