As the housing market continues to set records with low inventories and increasing competition among buyers, money is king. Today, Homie Loans announced Homie Cash, a new program that allows buyers to make cash offers to dramatically increase their chances of winning the perfect home.
Cash offers are 3 times more likely to win in a competitive bidding war, making them one of the most effective strategies for improving a buyer’s chances of their bid being accepted.
“I’ve seen too many Arizonans, empty-nested first-time homebuyers, lose the home they really want to investors or cash buyers. We saw the need, so we launched Homie Cash to give buyers a leg up on the competition, ”said Johnny Hanna, Co-Founder and CEO. “By turning your offer into a cash offer, Homie Cash gives you the peace of mind knowing you can make a cash offer as soon as you find a home you really want.”
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According to ARMLS data, cash buyers currently represent 20.96% of homes purchased in Maricopa County. In Phoenix, cash closings were up 79% from a year earlier in July. Cash transactions as a percentage of home sales were 23% compared to 15% last year.
In Utah, an early Homie Cash buyer looked at over 20 homes and made three traditional offers well above asking price in a month and didn’t get any of his offers accepted. Once they used Homie Cash, the first cash offer they made was accepted. While these buyers feared their offer would always be rejected, Homie Cash gave them the competitive edge they needed to stand out from other offers and land their dream home.
“Homie Cash is leveling the playing field by allowing buyers who don’t have hundreds of thousands of dollars in their bank accounts to become cash buyers and compete with each other,” Hanna said. “We are putting the power back into the hands of disadvantaged buyers in this extremely competitive market.
Participating in Homie Cash is easy. 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 compliant mortgage before sending out an offer on a property. Once approved, they work with their Homie real estate agent to make cash offers with Homie Loans funds.
Quick facts about Homie Cash:
• Program fee is $ 0 if used with family loans
• Up to $ 2,500 discount on closing costs when bundling services *
• End-to-end transaction under one roof
• No possibility of financing
• Closes in as little as 21 days
Homie Cash is currently available in Arizona, Utah, Colorado, Idaho, and Nevada, with plans to roll it out to other states in the near future. For more information on Homie Cash, call 480-999-2360 or visit homie.com/cash.