As the housing market continues to set records with low inventory and increasing buyer competition, cash is king. Today, Homie Loans announced Homie Cash, a new program that allows buyers to make all-cash offers to drastically increase their chances of winning the perfect home.
Cash offers are 3 times 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 Arizonans, from first time home buyers 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 Cash to give buyers a leg up on the competition,” said Johnny Hanna, Co-Founder and CEO. “By upgrading your offer to a cash offer, Homie Cash provides peace of mind knowing you can make a cash offer as soon as you find a home you really want.”
According to data from the ARMLS, cash buyers currently account for 20.96% of homes purchased in Maricopa County. In Phoenix, cash closings have grown by 79% from the previous year in July. Cash transactions as a percent of home sales was 23% compared to 15% last year.
In Utah, an early Homie Cash buyer looked at more than 20 homes and made three traditional offers well over asking price over the course of a month and did not have any of their offers accepted. Once they used Homie Cash, the first cash offer they made was accepted. Although these buyers were worried their offer would still be passed over, Homie Cash gave them the competitive advantage they needed in order to stand out amongst other offers and land their dream home.
“Homie Cash 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,” said Hanna. “We’re putting power back into the hands of buyers who have been disadvantaged in this intensely competitive market.”
Participating in Homie Cash 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 Loans funds.
Quick Facts About Homie Cash:
• 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 Cash is currently available in Arizona, Utah, Colorado, Idaho and Nevada, with plans to roll it out to more states in the near future. For more information about Homie Cash, call 480-999-2360 or visit homie.com/cash.