Salt Lake City — As the housing market continues to set records with low inventory and increasing buyer competition, cash is king. Homie Loans announced Homie CashTM, a new program that allows buyers to make all-cash offers to drastically increase their chances of winning the perfect home.
Cash offers are 3X more likely to win in a competitive bidding war, making it one of the most effective strategies to improve a buyer’s likelihood of their offer being accepted.
“I’ve watched too many of our customers, from first-time homebuyers to empty nesters, lose out on the home they really want because of investors or cash buyers. We saw the need, so we started Homie CashTM to give buyers a leg up on the competition,” says Johnny Hanna, co-founder and CEO. “By upgrading your offer to a cash offer, Homie CashTM provides peace of mind knowing you can make a cash offer as soon as you find a home you really want."
On average, there are five or more offers made on every home in Utah and Colorado. In Utah, the number of cash offers increased by 58 percent from the previous year in June. Cash offers represented 17 percent of transactions, compared to 10 percent the year before. In Colorado, cash offers (as a percentage of total transactions) have increased year over year in the Denver metro area, jumping from 11.5 percent of all transactions in June 2020 to 20.2 percent of all transactions in June 2021.
An early Homie CashTM buyer looked at more than 20 homes and made three traditional offers well over the asking price over the course of a month and found no success. Then they started using Homie CashTM and the first cash offer they made was accepted. They were still concerned that their offer would be passed over, but making a cash offer gave them the competitive advantage they needed to stand out among many offers and land the home they really wanted.
“Homie CashTM levels the playing field by allowing buyers that don’t have hundreds of thousands of dollars in their bank accounts to become cash buyers and compete,” says Hanna. “We’re putting power back into the hands of buyers who have been disadvantaged in this intensely competitive market.”
Participating in Homie CashTM is simple. Buyers complete a short application to qualify for the program. Once the application is submitted, Homie Loans will pre-approve buyers to ensure they are eligible for a conforming mortgage before sending an offer on a property. Once approved they work with their Homie Real Estate Agent to make all-cash offers with Homie funds.
Quick Facts About Homie CashTM:
- Program fee is $0 if used with Homie Loans
- Up to $2,500 rebate for closing costs when bundling services
- End-to-End transaction under one roof
- No financing contingencies
- Close in as little as 21 days
Homie CashTM is currently available in Utah and Colorado, with plans to roll it out to more states in the near future. For more information about Homie CashTM, visit homie.com/cash.
About Homie
Homie uses modern technology, coupled with the expertise of dedicated, local agents to save clients thousands. To date, Homie has already saved consumers nearly $100 million in real estate commissions and helped clients buy and sell over $3 billion in homes. The Homie family of businesses form a one-stop-shop, saving customers time, energy, and money. Homie has brought Real Estate, Mortgage, Title, Insurance, and Marketplace services all under one roof to make life easier for its customers.
In 2020, Homie was named #25 on Deloitte’s “North America Technology Fast 500,” an annual ranking of the fastest-growing companies. With a presence in Nevada, Arizona, Idaho, Colorado, and Utah, the company plans to expand this year. Homie Real Estate and Homie Loans are affiliated businesses in that both are owned by the same person. To learn more, visit www.homie.com/cash. Homie Loans NMLS# 1016597.