Fintech startup HomeLight has made its way to Colorado with the launch of its cash offer and trade-in programs, thanks to a $100 million credit facility by leading financial service provider Credit Suisse.
Homebuyers and homesellers across the state will be able to use HomeLight’s services, with dedicated staff in Denver.
“We’re deeply committed to providing the best agents with the most innovative solutions to compete and win in today’s competitive market,” HomeLight Founder and CEO Drew Uher said in a statement on Tuesday. “Cash Offer and Trade-In are the hottest products in real estate. With our expansion into Colorado, thousands of top agents can now enable their clients to have a buying or selling experience that is simple, certain, and satisfying.”
With HomeLight Cash Offer, HomeLight purchases a home on a homebuyers’ behalf so they won’t miss out on the home of their dreams while securing mortgage financing. After evaluating their income and assets to determine their buying power, HomeLight will make an all-cash offer on the listing of the buyer’s choice. After securing a mortgage, the buyer will purchase the home from HomeLight, plus a program fee of 1 to 1.5 percent.
Meanwhile, homesellers can use HomeLight Trade-In to skip the tenuous process of balancing two mortgages or securing a bridge loan. With HomeLight Trade-In, HomeLight will purchase the seller’s home for 90 percent of the home’s expected value on the open market. While HomeLight lists and sells the home with an agent, sellers can use the cash to purchase their next property.
If the home sells for more than HomeLight’s purchase price, the company pays the client the difference, minus a program fee that ranges from 1.5 to 4 percent, based on the market, whether the seller uses HomeLight Home Loans, and the number of days HomeLight owns the home.
Homesellers in Colorado who use HomeLight Home Loans for their next purchase will have a base program fee of 1.5 percent, which will rise 0.5 percent per month after an initial 60-day sale timeline. Homesellers who use another lender will have a base fee of 3.5 percent, which is subject to the same 0.5 percent increase.
The additional fee will be pro-rated for sales that happen between the first and last day of the month, a HomeLight explainer reads.
In an emailed statement, Uher explained bringing HomeLight’s trade-in and cash offer services to Colorado was a no-brainer, as the state has a population growth higher than 43 other states. “Colorado is among the fastest-growing states in the country, according to newly-released Census data,” he said. “Colorado added nearly 745,000 new residents since 2010, a 14.8 percent increase and more than 43 other states.”
Due to the population boom, Denver in particular has a dearth of inventory with 74 percent of homes selling in one week. These market conditions, Uher said, provide the perfect opportunity for HomeLight to serve buyers and sellers struggling to find homes.
“All of these converge and prove exactly why we built these products: to give home buyers and sellers the best transaction experience possible, especially in competitive situations,” he said. “HomeLight Trade-In and Cash Offer are the best options for top real estate agents, homebuyers, and sellers who are looking to compete in the region’s ultra-competitive market.”
HomeLight Cash Offer and HomeLight Trade-In are also available in California and Texas, with plans to expand to additional markets in the midwest and southwest “in the near future.”