FlyHomes Offers Sellers Guaranteed Closing
How often do deals fall through due to financing? 5%? 10%? 20%?
FlyHomes is guaranteeing the financing for their buyers to give them an edge in a bidding war (via GeekWire). If a seller agrees to an offer and the deal falls through for any reason, Flyhomes will purchase the home no matter what. That certainly makes it more likely sellers would choose a FlyHomes offer, even if it’s not the highest. That’s a win for buyers in a competitive market like Seattle — and hence a strategic advantage for FlyHomes to attract more buyers.
It’s true, this is only a big deal in competitive buyers markets (like Seattle). It’s true, there is a trend toward selling homes quicker (OfferPad, Instant Offers, Redfin Now, etc). Brokers are smart to offer consumer friendly solutions rather than let the portals do all the innovating (see here). I will say this. Maybe it’s not now and maybe it’s not FlyHomes / their lending partner, but at some point, someone is going to end up with a bunch of homes in the red when the market takes a turn & homes are depreciating rather than appreciating. If history means anything, a downturn is inevitable in most markets sometime in the next few years.
That said — to the brokers / agents reading, I’d love to know if you’ve contemplated offering your buyers the same sort of financing guarantee (assuming you could pull off the financing, of course)?