Offerpad, the Arizona-based online fast homebuying and reselling company, announced Wednesday that it has hired Bryan LaFranchi to lead its program in which homesellers can get all cash for their old properties and put the money toward the purchase of a newly-built home.
LaFranchi’s job as the national director of Offerpad’s Homebuilder Alliance will be to push the program into new cities and develop new products “tailored to buyers of new-construction homes,” according to a company statement.
In a statement describing why he decided to join Offerpad, LaFranchi said the company “is a trusted brand that understands that behind every home bought and sold lies a customer.”
“They believe every customer deserves multiple options and the freedom to choose which works best for their situation,” he added. “Offerpad provides a world-class service and I’m honored to help lead the way through the Home Builder Alliance program.”
The program partners with construction firms and lets consumers put the cash they receive from Offerpad for an existing home directly toward the purchase of a new build.
Offerpad believes the program, which has been in development for three years, allows its customers to “eliminate the contingency of needing to sell before buying a house.”
The company also said in its statement that consumers using the Homebuilder Alliance program will get offers on their properties within 60 minutes, verses the more typical 24 to 48 hours, as well as a longer closing period, more time to move and other perks.
In an email, an Offerpad spokesperson told Inman that the rapid, 60-minute turnaround time is possible because the company prioritizes customers who come through the Homebuilder Alliance program. However, that should not impact other would-be sellers seeking offers.
Also in a statement Wednesday, Offerpad’s chief marketing officer, Darrin Shamo, praised LaFranchi, saying that he “will help Offerpad and homebuilder allies optimize solutions for consumers seeking the best real estate experience.”
Prior to joining Offerpad, LaFranchi worked as a senior sales manager at Zillow. He also previously worked in the equity and wealth management industries.
Offerpad was founded in 2015 and has since grown into one of only a few major, dedicated online all-cash homebuyers, collectively known as “iBuyers.”
Offerpad, headquartered in Gilbert, Arizona, currently operates in 14 major metropolitan areas across the U.S., including in Phoenix, Atlanta, Las Vegas, Los Angeles, Houston, Salt Lake City and others.
Like its rivals, it lets potential homesellers enter in a few details about their properties online and then provides them with a quick, all-cash offer for their home and flexible closing timeframes meant to save them time and hassle.
In Offerpad’s case, would-be customers are guided through a series of basic questions about their home before ultimately being prompted to put in their contact information to receive the actual offer.
The latest cash infusion was earmarked to help the company expand geographically, and highlighted the intense competition among iBuying companies. Other major players that also provide all-cash offers include heavyweights such as Opendoor and Zillow, both of which are fast expanding across the country, with Opendoor leading the way in 20 markets nationwide and a goal to be in 50 by the end of next year.
Opendoor — which is valued at nearly $4 billion — also has a program that works with home builders. In Opendoor’s case, the program works the same way that car dealerships let customers trade up for newer models; a homeowner visits the office of a builder such as Lennar or Meritage Homes, picks out a property, and then finds out how much Opendoor will give them for their existing house. Opendoor and the builder then coordinate to pull off a closing in as little as 10 days.
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