In today’s hot housing market, people don’t have much time to think over the properties they are racing to purchase.
As a result, buyer’s remorse is becoming more and more common. But the Seattle-based real estate startup Flyhomes is posing a solution for homeowners swimming in regret.
Since starting in 2016, Flyhomes has helped buyers close on $2.9 billion worth of homes. The company offers various services, including cash-purchasing power to buyers, price guarantees to homesellers and in-house mortgage services.
Earlier this week, the company announced the launch of a new tool, Flyhomes Guarantee. Through Flyhomes Guarantee, clients who regret their move within one year of purchasing can list with Flyhomes, which will waive commission.
However, homeowners who use Flyhomes Guarantee will still be required to compensate the buyer’s agent, pay any applicable excise taxes and cover seller closing costs.
“In this environment, buyers must make a huge decision about one of the most basic human needs, shelter, within a few hours of their first viewing. This can cause uncertainty and anxiety in the process, and potentially regret afterward. We’ve made it our mission to eliminate these things from the experience,” Tushar Garg, co-founder and CEO of Flyhomes, said in a release.
“Our team of real estate experts does their best to ensure that clients get it right the first time. We can’t take all the risk and cost out of buyer’s remorse, but we can do our best to be there as great partners and alleviate the pain. No one should live with buyer’s remorse for their home.”
Clients who choose to relist with Flyhomes will receive the brokerage’s full list of services, including a pre-listing home evaluation, a pricing analysis, professional photography, a 3D tour, deep cleaning, staging, hosted open houses and expert negotiation.
The startup operates in Seattle, San Francisco, Los Angeles, San Diego, Portland and Boston. Since launching, it has raised over $200 million. The most recent funding round took place in June, which raised the company $150 million.
As Inman previously reported, funding participants included Norwest Venture Partners, Battery Ventures, Zillow co-founder Spencer Rascoff, Balyasny Asset Management, Fifth Wall, Trustbridge Partners, Camber Creek, and investors Andreessen Horowitz and Canvas Ventures.
“Buying a home is a stressful experience,” Lisa Wu of Norwest Venture Partners said in a release in June. “Flyhomes is laser-focused on the customer journey and has helped thousands of buyers win homes they love while saving them months of time and thousands of dollars. They are emerging as the leading consumer-facing brand in this new category. We’re thrilled to partner with them to serve more buyers across the country.”
Flyhomes is one of a growing number of companies that seek to provide end-to-end services to homebuyers including real estate brokerage, mortgage, and title and settlement services. Flyhomes Inc.’s subsidiaries include: FlyHomes Brokerage LLC, FlyHomes Mortgage LLC, and FlyHomes Closing.
As the first stop on the path to homeownership, a number of prominent mortgage lenders — including Rocket Cos., loanDepot, and Better — are also positioning themselves as providers of end-to-end services, provided through subsidiaries or referrals. Cloud banking software developer Blend is helping mortgage lenders provide the same kind of experience, without having to build it themselves.
