This announcement follows Homeward’s continued expansion and a successful Series B funding round May 2021. The startup secured growth capital from $371 millionincluding $136 million in equity and $235 million indebted to meet multiple growth targets.
In the first quarter of 2022, 33% of the houses were sold Florida were cash sales, an increase of 20% over the prior year. An unsurprising increase as cash offers are four times more likely to outperform funded offers.
“Our Homeward Cash offering makes home buying a reality for more customers. By eliminating contingency, thereby adding certainty to a deal and keeping the agent at the heart of the transaction, homebuyers can compete,” he says Tim Heil, CEO and Founder of Homeward. “We know cash is king in this market, but not all cash offerings are created equal. Most cash offers – including those from iBuyers – focus on speed and end up with the buyer paying a premium. At Homeward, we are committed to reducing costs for the customer while streamlining the transaction.”
The Homeward Cash offering was designed to remove the limitations of the traditional funded offering. By partnering with real estate agents, Homeward makes a cash offer on behalf of the agent’s client. Customers then receive a mortgage from Homeward or the customer’s preferred lender and buy the home back from Homeward.
tampa is the third most popular city Americans are trying to move to in 2022, behind Phoenix and Miami — Markets in which Homeward currently operates.
“In competitive markets like tampathe traditional buyer is struggling to be considered alongside large investors who have the money and ability to buy up the limited inventory available,” he said Brian Gubernick, Chief Real Estate Officer at Homeward. “By eliminating the contingencies of financing, home selling and appraisal, we give our Homeward clients the key to winning a deal without sacrificing their security. On the other hand, sellers can close quickly and smoothly without having to worry about financing or falling through.”
A one stop shop for home buying
The Homeward Cash offer consists of two distinct products — Buy before you sell and Buy with KasH. Both involve two important steps. First, Homeward buys the house with cash. After a customer receives a mortgage from Homeward or another lender, customers buy the home back from Homeward.
Customers who need to sell their current home before buying a new home can take advantage of it Buy before you sell. This gives them the competitive advantage of cash to secure their next home as well as the opportunity to move into the new home before they list their old home. This gives customers the confidence and peace of mind they need to put their old home on the market without having to worry about where they will live next.
For clients who don’t have a home to sell, Homeward’s Buy with cash Solution makes a buyer’s offer more attractive to sellers by converting it into cash. Customers use Homeward’s tools to remove contingencies from their offering, negotiate with more power, and close faster—all with their preferred agent.
Homeward also offers adjacent real estate services, Homeward Title and Homeward Mortgage, which allow clients to simplify the buying process while saving money on closing costs.
“Instead of working with three separate companies, clients can bundle their real estate transactions with Homeward, saving time, money and effort,” says Gubernick.
Focus on the real estate agent
Ranked 8th hottest metro area for investors, 24% of deals in tampa in the fourth quarter of 2021 were categorized as investor purchases. As investor buying increases, real estate agents must find new ways to help their clients compete.
“Homebuyers and their agents face an outsized need for innovative solutions to the ever-growing problem of limited inventory and rising prices,” said Gubernick. “Homeward doesn’t just innovate in the home buying process for the customer – we keep the realtor at the center of our business. Maintaining broker-client relationships and protecting broker commission is key to our mission.”
Homeward’s solutions are available to any agent, but the company works strategically with top brokers and teams, providing dedicated support, white label branding and digital marketing tools to help them generate more leads.
Homeward continued to build on last year’s success. As of February 22, the company has seen revenue increase approximately 5x year-on-year while partnering with over 50 brokers across the country.
“We’re excited to make home buying more accessible for customers while helping realtors grow their businesses in the United States tampa market,” said Heyl.
The start in Florida marks an exciting step towards Homeward’s goal of launching in up to 20 new markets by the end of 2022, including the coastal markets of Oregon and Washington later this year.
Homeward is a modern home finance company that helps real estate agents and their clients overcome the limitations of traditional mortgages. The Homeward Cash Offer eliminates financing, home sale, and appraisal contingencies so homebuyers can win with cash and, if needed, 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 turn every customer into a cash buyer.