The Homeward Cash offer benefits agents by giving buyers an edge in one of the most competitive markets in the country
MIAMI, May 10, 2022 /PRNewswire/ — Homeward, a modern home finance company that enables real estate agents to give every customer the power of money, has expanded its markets Miami, Fla.
Miami was an obvious choice for Homeward, which already operates in Germany Texas, Georgia, Colorado, Arizonaand other markets in Florida. In March 2022 about 30% of the Miami’s Single-family homes were bought with cash. And more than 50% of townhouses and condos were bought with cash, indicating record competition. (Source)
“Miami Real estate agents and their clients – like so many large metropolitan areas in the US – face unprecedented challenges in terms of rising prices, competitive inventory and an investor-dominated market. We are glad to cooperate with agents and customers Miami to provide a solution that makes home buying a reality for more people,” said Homeward CEO and Founder, Tim Heil. “By turning the traditional buyer into a cash buyer, we are answering the question realtors face every day – how can I buy a home in this market? We enable realtors to change the conversation and in turn, help their clients buy their next home.”
This announcement follows Homeward’s recent expansion into Arizona in January 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.
“We’re really focused on how to expand our services into additional markets,” says Heyl. “Having successfully optimized and scaled not only our product, but also our support teams to meet agent and customer demand, we are ready and excited to expand into new markets such as Miami.”
The Homeward Cash offering was designed to remove the limitations of the traditional funded offering and transform the everyday shopper into a cash shopper. 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.
“Miami Real estate agents and their clients are tired of the endless competition of the last few years, and there is no sign of relaxation in sight. In March alone, 64% of properties were in Miami received multiple offers,” said Brian Gubernick, Chief Real Estate Officer of Homeward. “Sellers aren’t just looking for the highest bid — they’re looking for the strongest bid they can count on to not get through. By eliminating the contingencies of financing, home sale and appraisal, our homeward buyers sign more often, making it a win-win for all parties.”
Growing in every way except housing
In the past ten years Miami recorded a population increase of 14%. Big names like Blackstone, Goldman-Sachs, and even Subway, dubbed one of America’s “boomtowns,” choose to open offices Miami. As the population grew, the area saw the average cost of a home rise 29.7% year-on-year in February, but still lags behind major cities like new York, san francisco and the like, which maintains its attractiveness.
The costs associated with population growth have weighed on the housing supply; from March, Miami’s The stock of single-family homes fell 29.2% year over year, which means more shops, more people and fewer apartments.
Three companies, one great experience
Homeward formed two subsidiary companies – Homeward Mortgage and Homeward Title – both of which are now licensed to operate Florida.
“Traditionally, when buying a home, you’re hustled from company to company to close the deal, often paying thousands of dollars in closing costs,” says Gubernick. “At Homeward, we believe we can lower costs for clients without sacrificing agent commissions. By having Homeward’s title and mortgage under one roof, we are able to minimize redundancies, streamline the process and thereby save money for the buyer.”
“Bundling services saves homebuyers money, time, and effort,” says Gubernick.
Cooperation with real estate agents
demand for Miami Real estate will only increase as population and job opportunities grow. Real estate agents face an outsized need for innovative solutions to help their clients.
“With our entry into Florida“We continue to scale and expand our services while keeping the real estate agent at the heart of our mission,” says Gubernick, continuing to be at the root of the transaction and guiding clients through this major purchase.”
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.
“Our team at Homeward is very excited to help Miami Agents and their customers,” says Heyl. “We know that buying a home is a big financial decision for clients and a complicated process for agents. We look forward to providing a better and more convenient experience.”
Creation of customer-oriented solutions
Both solutions from Homeward — Buy before you sell and Buy with cash — include two transactions. Homeward buys homes with cash on a client’s behalf, then the client obtains a mortgage and buys the home back.
Cash offers are four times more likely to outperform funded offers. Compared to the national average of 27% of US home sales made in cash in March, Miami saw that cash offers accounted for 52% of closed condo sales and 28% of single-family home sales. for Miami Staying competitive with a cash offer has never been more important for homebuyers.
Buy before you sell Clients get the competitive advantage of cash as well as the ability to move into their new home before listing their old home. This gives them the confidence and security they need to put their old home on the market.
“Although interest rates are rising, the market is showing signs of continued competition,” says Gubernick. “From the first-time buyer struggling to get a foot in the door, to the customer looking to buy a vacation home South Floridathere are countless ways customers and agents can use our Homeward products to win in this market.”
The extension in Florida marks an exciting step towards Homeward’s goal of opening up to 20 new markets by the end of 2022, with plans to expand into 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.
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