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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)?

About Drew Meyers

Founder of Geek Estate Blog / Geek Estate Labs. Zillow Alum. Travel addict & co-founder of Horizon. Social entrepreneurship & microfinance advocate. Fan of Red Hot Chili Peppers and Kiva.

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