Jim Hodson still recalls the day in November 2008 he made his first major fundraising pitch to potential investors, with headlines screaming of the collapsed mortgage markets and tanking economy.
“Oh, this is a great day to have this kind of a conversation,” he recalls saying.
It just may have been.
Bethel-based Countdown to Buy has begun running an online service allowing banks to list foreclosed properties, with the price dropping 1 percent automatically each day it goes unsold.
Countdown to Buy is also soliciting business from sellers listing homes not under duress, but is counting on initial business from banks leery of the foreclosed properties suddenly in their possession, or in cases of short-sale situations.
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The purpose of the auto-discount engine is to motivate buyers and sellers to cut a deal rather than letting the property languish on the market at overly high prices. Once the offer price matches or exceeds the list price, the offer is automatically accepted and the contract process begins.
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Hodson said the hardest part of the business to date has been getting banks to consider a new channel for selling homes.
“These banks are very sophisticated and they want to see the numbers crunched,” Hodson said. “Yes it”™s a new psychology, but the numbers really do make sense.”
Countdown to Buy makes money off a commission for each home sold. The company has entered into a support-services agreement with a mortgage service provider it did not name, and is in negotiations with other lenders and banks. Countdown to Buy currently lists three mortgage companies on its website for buyers considering a home purchase ”“ Walpole, Mass.-based Mortgage Master Inc., Flagstar Bancorp Inc. of Troy, Mich., and Champion Mortgage of Lewisville, Texas.
The Countdown to Buy service includes a function for real-estate agents to invite their buyers to view listings. Many agents in Fairfield County have been urging homeowners to list their homes at aggressive prices, arguing the longer a house sits on the market, the more value it ultimately loses.
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Countdown to Buy founder Hodson started the company after repeatedly driving by an attractive residential property that was languishing on the market for just that reason, Countdown to Buy is now seeking patent protection on its process.
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The company launched in 2008. Hodson has held varying finance, operations and information technology positions with Wilton, Conn.-based Character Arts L.L.C.; Deloitte, which has a major office in Wilton; and Fairfield-based General Electric Co.
Peter Becker, director of information technology at Countdown to Buy formerly worked at Armonk, N.Y.-based IBM Corp.
As of mid-December one week after the company launched, one property was listed in Fairfield County on the Countdown to Buy site of five total ”“ a 1,300-square-foot condominium unit in Danbury.
Hodson told the Fairfield County Business Journal that Countdown to Buy has raised $1.1 million, which the company confirmed in a subsequent press release without disclosing its investors.
In time, Hodson said he would like to expand the platform to include commercial properties, though acknowledging the two markets have very different characteristics.
He also believes the company will likely attract notice elsewhere within the tri-state region. In fact, he knows it ”“ the day after Countdown to Buy launched its website, Hodson said the company got an inquiry from an agent in Beverly Hills, Calif.
