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Home Selling

Same as Cash Guarantee

As part of Faira Premium, we are now offering a same as cash guarantee. When offers are received, they may be cash or subject to financing. Sellers sometimes miss the opportunity to take a higher offer because they prefer to take a lower cash offer. If you use this program, you can now accept an offer subject to financing with high confidence, as if it was a cash offer. This levels the playing field and may result in stronger competition to give you the best price while improving your peace of mind no matter what offer you take.

Here are some illustrations inspired by a real past transaction covered on CBS news:

Traditional Sale

If this same transaction took place the traditional way, here's how it might have played out. The home was listed at $975,000 and buyers prepared their paper offers without knowing each other's bids. There was a fairly high offer, above the asking price at $1,200,000. The seller would take it believing it was the best offer.

Final result: $1,200,000

FAIRA

Competitive and transparent offers published online allowed buyers to realize that they would lose the home to the $1,200,000 offer, so they tried harder. It lead to the highest offer coming in at $1,350,000 (financed) and a second place at $1,300,000 (cash). The seller did not take the highest offer, though, for fear it wasn't as good as cash.

Final result: $1,300,000

FAIRA Premium with Cash Guarantee

After obtaining the highest offer at $1,350,000, the seller still gave other buyers a chance to improve. The second-place buyer knows that their cash offer doesn't have any advantage over the highest offer since both are as good as cash to the seller, so their only choices are to either (1) lose the home or (2) improve further. Both buyers continue until the very best offer is made.

Final result: $1,350,000 or higher (up to the buyers to compete)

A seller who opts for the cash guarantee benefits in three ways: it allows the seller to take a better offer even though it’s financed, in many cases easily paying for the cost of the service. It also puts the seller in a stronger negotiation position, motivating buyers to present a better offer. And finally, even if all offers available are financed, the seller enjoys the peace of mind of treating them all as cash.

 

 

Kamal Jain

Written by Kamal Jain

Kamal is the CEO and Co-Founder of Faira.com. A technologist and economist, Kamal specializes in designing business models for the internet, which he did for both Microsoft and eBay. Kamal now wants to align the interests of home buyers and home sellers with Faira.

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