The only thing sexy about 2020 … the change in homeownership & the new way people are buying homes!
Edition #3 ... it's going down!
Extra! Extra! Read All About It! Edition 3 of Blossom is back-in-action 📣
We hope you had a ghoulish-filled Halloween with lots of candies and treats 🍫 … and we wish you luck as you take on Election-Week 🥴
We have a lot to unpack so let’s get to it …
There’s a pandemic going on … and you want me to buy a house … huh? Are you crazy?!
… But seriously what’s the status of homeownership at the moment? 🏡
The pandemic is driving a major boom in the housing market as social distancing is compelling people to move into suburban areas.
As companies continue to extend work-from-home policies, many buyers are re-evaluating their options that may include more space or different home amenities — e.g. a bigger yard, or a home office.
Given the lack of new inventory and seasonal slowing, sales price growth continues to hit new highs.
How long the surge in demand toward suburbs will last will depend on the path of the virus.
While tech can’t change the value of home prices, it can make homeownership more achievable. 🏆
How? By removing financial contingencies, offering a seamless and transactional experience, and providing an insurance-sentiment during the buying process.
What are some examples?
Stand-in cash program for buyers. Companies like Ribbon, Knock, FlyHomes, and Orchard put in an all-cash offer on their clients’ behalf to have a fast-close and when the buyer secures financing in approx 30-45 days, they transfer the title. If the buyer is looking to undercut other buyers with a faster closing or is having mortgage delays such as the bank’s antiquated appraisal and underwriting process taking too long, they will allow the client to rent until they can purchase it. Also, they can sell the home to the client at the same purchase price in case they need more time.
Source: A Novel Path to Homeownership
Rent-to-own: Companies like Divvy, Point, Provito, Homevest, CoBuy, Zerodown, Flyhomes, buy homes in cash on behalf of their client while the client pays between 1-2% down, and monthly rent for a three-year term. Over the course of three years, clients own around 10% of the home, boosting their credit and enabling them for a mortgage. Even if clients change their minds about the property, they still have a 10% stake and walk away with their portion of the sale. While this is an expensive way to pay for rent, the credit building feature is very appealing to lenders.
Source: A Novel Path to Homeownership
… So if homeownership’s the new trend … where should I be looking? Where are the next up-and-coming areas? 📈
Rural areas around the country are seeing their economies improve as city dwellers working remotely look for places to ride out the pandemic.
People want a change of scenery, want to be able to get out of their bubble and be immersed in nature. 🌵
Here are some areas we think are worth taking a look into: Salida, Colorado, Park City, Utah, Truckee, California, Durham, North Carolina, and Fort Walton Beach, Florida.
📰 News:
Former Zillow execs raise $40M seed round for Tomo Networks to reinvent how people buy homes
Finnish PropTech startup Kodit.io raises €100M to finance new home purchases
📚 What we’re reading:
👨💼 Hiring:
We’re a PropTech newsletter after all … it’s a MUST that we post a “House of the week”, right?!
Check out The Razor Mansion based out of La Jolla, CA. Last sold for $20.8M.
That’s all for this week folks! Tune into the next-few editions of Blossom to find out the latest trends on the following topics … and more! 🌹
Eligibility verification (income, credit score, employment, etc)
Mortgage, title, escrow, and home insurance
Paperwork management
Renovation and construction
Home management
Retail and storefronts
What did we miss? Reach out to us @JoinBlossom