Seattle is a hotbed for real estate tech. We are home to popular real estate sites like Zillow and Redfin which have changed how people shop for homes. Many people ask us, "How is Faira different than Redfin and Zillow?" There's a big difference and I'll explain.
It's tough out there for Seattle area home buyers. The market is hot and competition can be fierce. Faira sellers love that our new technology empowers them to sell their home free, but what about buyers? We've heard from many buyers that they would like to use Faira to buy a home. Since the decision to use Faira starts with the seller, buyers can't take advantage of Faira's transparent process and modern technology unless the seller chooses to list their home using Faira.
A recent article in The Seattle Times on the Seattle housing market illustrates how low inventory and rising prices are leading home buyers, sellers and agents to seek new ways to connect. Faira was featured in the story as a new player in the Seattle real estate market.
We've heard so many stories from home buyers who discovered too late that the home they were pursuing had hidden issues that increased costs, created delay, and compounded stress! At Faira, we're working to improve the home buying experience for you.
At Faira, we offer a new process to buy and sell real estate that is simple and transparent. We also provide protection for buyers so they can feel confident in the process. The Faira Appraisal Guarantee is one safety net we offer free to buyers to reduce their risk.
In a purchase and sale transaction, an appraisal is ordered by the lender to determine whether the home's contract price is appropriate given the home's condition, location and features.
Lenders want to make sure that homeowners are not overborrowing for a property because the home serves as collateral for the mortgage. If the borrower should default on the mortgage and go into foreclosure, the lender will recoup the money it lent by selling the home. The appraisal helps the bank protect itself against lending more than it might be able to recover in this worst-case scenario.
Faira Appraisal Guarantee
When you buy a home with Faira, we provide you with an Appraisal Guarantee certificate. This certificate means Faira is guaranteeing that your lender ordered appraisal will be at least the amount on the certificate.
Here is a an example:
Your Faira Appraisal Guarantee certificate is for $500,000
You offer $525,000
You have $100,000 (20%) to put down.
The lender's appraisal comes in at $450,000
Your lender will let you borrow $360,000
Your lender's appraisal came in lower than the Appraisal Guarantee, so in this scenario you are able to walk away from the deal without losing your 0.5% platform fee.
As a buyer, it is your choice to offer more than the amount on the Appraisal Guarantee. If you do, you should be sure to run the numbers so you have the cash on hand to make up the difference between the appraised value and the amount you need to borrow.
Questions about buying or selling? Contact us at email@example.com
The negotiation is perhaps the hardest part of the entire purchase/sale process. There are no ground rules in the negotiation process, which doesn’t help anybody. A buyer is left guessing how the seller will respond to their offer. Either side can bluff or tell the truth, and the other side can’t distinguish between a bluff and the truth. A buyer doesn’t know whether they are competing against a fictitious other buyer or if there actually is another buyer as the listing agent claimed. A listing agent may bluff to a selling agent, who now shares the bluff with their buyer.
At Faira, we believe in improving the process by which homes are bought and sold. To do this, we offer a great value to selle
rs. The following services are FREE for sellers who list their homes with Faira:
- MLS Listing + syndication
- Independent inspection
- Professional photography
- Title report
Faira empowers sellers to treat their prospective buyers as partners in the home-transaction process rather than opponents. Home transaction is not a zero-sum game, as many folks tend to believe. The Faira process is designed to provide the maximum value possible to both buyers and sellers. The Faira process makes home facts transparent and the bargaining process trustworthy. Faira’s transparency report, offer platform, and Appraisal Guarantee reduce most of the transaction failure risks, and since there is no earnest money, the purchase-sale contract is simplified.
The simplification enables buyers and sellers to take charge of this transaction and enables Faira to offer its platform for a mere 0.5% and offer more services than in a conventional process.
Why the Faira process works better:
- The inspection report upfront removes the risk of renegotiation.
- The offer platform removes the possibility of a bluff.
- No earnest money deposit and no contingencies simplify the contract.
How the Faira process works for both buyers and sellers
I've talked to many homeowners over the past two years who feel selling a home is needlessly complex and stressful. I happen to agree, which is why I started Faira. Faira simplifies the process and the contracts, decreasing risk and increasing cost efficiency. One way we do this is by removing an element in the conventional real estate transaction process. Let me explain.
Every home is one of a kind - whether it’s new construction or a 100-year-old craftsman. Homes are highly customized to the owner’s lifestyle and aesthetic. During an open house, buyers can clearly see kitchen cabinets, flooring, closet space and experience the flow of the house and character of the neighborhood.