“Buy low, sell high” may be one of real estate”™s fundamental maxims ”” but what if a homeowner can”™t solve the “sell-before-you-buy” dilemma in today”™s tight marketplace?
One solution: Let the broker buy the existing home, thus enabling homeowners to unlock their house”™s equity quickly in order to make a noncontingent offer on their next home.
As opposed to “iBuying,” which usually involves a realtor making a “take it or leave it” offer to the homeowner, William Raveis Real Estate, Mortgage & Insurance (WRRE) is taking a different approach. The family-owned real estate company spanning the Northeast and Florida has launched the Raveis Purchase program.
“The bottom line is that we want to help our agents help our customers,” Ryan Raveis, co-president of WRRE and president of William Raveis Mortgage, told the Business Journal.
“About a year ago we saw that there was going to be a lack of listings coming onto the market, which along with low mortgage rates resulted in what we”™re seeing now ”” high demand and low inventory.”
Raveis said that sales are off by roughly 30% this year compared to years past, with customers interested in trying to capitalize on the hot market stymied by not being able to hold two mortgages at once.
“We are a mortgage company as well,” he noted. “But while we offer bridge loans, that isn”™t what this is. Raveis is taking over the title for the property, so the homeowner benefits.”
WRRE has a team of experts that appraises the property using multiple automated valuation models, then makes the homeowner a “custom purchase offer” ”” up to 80% of its current value ”” which Raveis said unlocks the majority of the equity, allowing the homeowner to settle any mortgages.
Using another new tool, Raveis Refresh, WRRE then prepares the home for sale by making any necessary upgrades and renovations in order to maximize the home”™s value, which Raveis said helps move the home more quickly and at the highest possible price. The end sale price, he added, will be market-driven and the house will be sold to the highest ”” not necessarily the first ”” bidder.
The service is available throughout Raveis”™ nine-state footprint ”” Connecticut, Massachusetts, Rhode Island, Vermont, New Hampshire, Maine, New York, New Jersey and Florida ”” and for homes at all price points.
The new tools are already being well received by the firm”™s agents, who “love it,” Raveis said. “There are a couple of hundred deals that we”™re looking at now and a couple hundred that are under contract.”
He further predicted that as the service becomes more popular it will loosen the tight real estate market.
“It”™s like you have a big block of ice and we”™re chipping it down to the point where we”™ll have enough inventory for the market,” he said.
