A cure for a homebuyer’s remorse: Real estate startup Flyhomes today launched a new offering called the Flyhomes Buyer Guarantee, which gives customers the ability to move out of a home they recently bought. This is the latest idea from a Seattle-based company known for helping people buy homes directly with cash.
How it works: If a Flyhomes buyer decides they want to move out within a year of closing, Flyhomes will list the house and waive the commission. The client will still have to pay the buyer’s agent on the sale of the home, in addition to excise taxes and the seller’s closing costs. The idea is to help buyers reduce the anxiety of buying a home, especially in today’s competitive market. houses are selling fast…
Flyhomes background: Flyhomes, founded in 2016, has helped over 3,000 families acquire nearly $ 3 billion worth of homes.
Its cash offer program presents customers as the equivalent of cash buyers, which makes the deal more pleasant for sellers, removes uncertainty, and can give Flyhomes buyers an edge. Buyers receive a short-term loan from Flyhomes, which provides cash until its clients take out their long-term mortgage. Flyhomes says it doesn’t make money on short-term loans with an annual interest rate of around 6%. Buyers also pay the final costs when refinancing a short-term mortgage.
Most of the company’s revenue comes from agency fees.
The 450-person startup also offers mortgage services and has Buy Before Sell Program which helps sellers buy and move to their next home before selling their current property.
Flyhomes is currently active in five states. The company is headed by a CEO and co-founder. Tushar Garg… It has raised over $ 200 million to date, including a $ 150 million Serie C round in June. Investors include Norwest Venture Partners, Battery Ventures, Fifth Wall, Camber Creek, Balyasny Asset Management, Andreessen Horowitz, Canvas Partners and former Zillow Group CEO Spencer Raskoff.