Connecticut-based William Raveis Real Estate, Mortgage and Insurance (WRRE) has entered the sell-before-you-buy market with the launch of Raveis Purchase, according to an announcement on Wednesday.
Available in Connecticut, Massachusetts, New York, New Jersey, Rhode Island, New Hampshire, Vermont, Maine and Florida, Raveis Purchase allows homeowners to sell their homes to WRRE, which gives them the funds to settle their mortgage and make a non-contingent offer on another property.
“Raveis Purchase is the ultimate in hassle-free home-selling,” WRRE Co-President Ryan Raveis said in a prepared statement. “For homeowners who want to maximize the value of their home and take advantage of this hot real estate market, Raveis Purchase is a no-brainer and a guaranteed sale.”
“They will have cash in hand and be ready for their next home,” Raveis added.
To get started, homesellers must request a free consultation with a WRRE sales associate, who will appraise their home based on several automated valuation models and provide an offer that’s up to 80 percent of the home’s value. After accepting the offer, sellers will receive a payout within several days so they can settle their current mortgage and start the search for another home.
From there, the associate will list the seller’s home on the open market and help them make another purchase, which they can finance and ensure through WRRE’s title, mortgage and insurance services. Before listing the home, associates can schedule needed upgrades and repairs through the Raveis Refresh program.
Once the listing is sold, homeowners will receive a second payment that’s equal to the remainder of their equity, minus carrying costs and service fees at closing.
“The end sale price will always be market-driven and whatever the market is willing to pay for it,” Raveis told Inman in an emailed statement. “The house will be sold to the highest bidding buyer, not the first.”
“Another benefit is that if the property needs some upgrades before it hits the market, we use our program Raveis Refresh, with no upfront costs to the homeowner,” he added. “In the end, the consumer will make out better because they’re keeping the upside of the sale.”
At closing, homeowners will pay an agreed-upon fixed service fee, a listing agent fee, and any carrying costs (e.g. taxes, insurance, etc.). Raveis said the exact percentages for the fees will vary and are determined when the seller accepts WRRE’s initial cash payout.
“All offers are custom. There’s a fixed fee agreed upon before the seller accepts Raveis Purchase,” Raveis explained. “Typically the Raveis Purchase fee is 3 percent, but custom based on the amount of equity they’re taking out. The homeowner still pays the agent listing fee which is typically 6 percent.”
Raveis said unlike other instant offer or iBuying options, Raveis Purchase ensures homeowners receive a maximum payout while benefitting from a quick and seamless experience.
“With Raveis Purchase, the consumer will make out better because they’re keeping the upside of the sale,” he said. “The homeowner benefits from the value Raveis Refresh puts into the house to prepare it for sale. We invest in the home so the homeowner can get the maximum value and highest final sale price.”
“The homeowner keeps the upside of the final sale price, unlike other iBuyer models that buy low, renovate and then sell high — and keep the difference for themselves,” he added. “We create added value in the home and pass all of it along to the homeowner.”