Selling home to "Home Partners of America" ???

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SwampDonkey
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Selling home to "Home Partners of America" ???

Post by SwampDonkey »

Our home has been on the market for a few days. At least 60 potential buyers/agents have attended two open houses. Several offers have been made at or above asking price. However, the best offer we've received is from a company, not an individual(s).

Has anyone ever sold a home or had any dealings with "Home Partners of America?" Their website is https://www.homepartners.com.

I had never heard of them before which (rightly or wrongly...) leads me to be slightly suspicious. Their website says they buy properties in certain markets and then offer them to residents in a lease-to-purchase program. From my understanding, this is essentially a means for people who can't secure home financing to still "own" a home.

The agent who made me the offer on the company's behalf said they have two non-negotiables in their offer contract:
1. I have to use their title/closing company. RealTechTitle is the required company. (https://www.realtechtitle.com)
2. The inspection period of 10 days cannot be changed.
Should either of these non-negotiables be concerning?

Would appreciate any experiences the BH community has had with this company (or other companies like it). Thank you.
Last edited by SwampDonkey on Fri Apr 23, 2021 10:17 pm, edited 1 time in total.
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Nate79
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Re: Selling home to "Home Partners of America" ???

Post by Nate79 »

What does your agent say about this?
Topic Author
SwampDonkey
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Re: Selling home to "Home Partners of America" ???

Post by SwampDonkey »

Nate79 wrote: Fri Apr 23, 2021 10:17 pm What does your agent say about this?
FSBO so no agent.
hi_there
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Re: Selling home to "Home Partners of America" ???

Post by hi_there »

I don't have experience with them, but it's probably that they buy so many homes that they have strict procedures that are intended to reduce closing time and costs, since this is probably important to their business model.

I think this indicates that your listing price was way too low, such that a professional real estate flipping company is willing to outbid all the retail people, who are probably anchoring their bids to your initial price. Maybe it would be a good idea to consult with a real estate agent who can advise you on current market conditions.
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RickBoglehead
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Re: Selling home to "Home Partners of America" ???

Post by RickBoglehead »

You priced too low.

Never have open house.
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SwampDonkey
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Re: Selling home to "Home Partners of America" ???

Post by SwampDonkey »

hi_there wrote: Fri Apr 23, 2021 10:38 pm I don't have experience with them, but it's probably that they buy so many homes that they have strict procedures that are intended to reduce closing time and costs, since this is probably important to their business model.

I think this indicates that your listing price was way too low, such that a professional real estate flipping company is willing to outbid all the retail people, who are probably anchoring their bids to your initial price. Maybe it would be a good idea to consult with a real estate agent who can advise you on current market conditions.
Good points on their business model.
Price was based on comps within the past 45 days with a small premium added. This market is just crazy.
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SwampDonkey
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Re: Selling home to "Home Partners of America" ???

Post by SwampDonkey »

RickBoglehead wrote: Fri Apr 23, 2021 10:44 pm You priced too low.

Never have open house.
I would typically agree with you about open houses but with the amount of interest we've received on the home, it was impossible to manage individual showings. Well over 40 inquiries over the past 48 hours. With the number of offers we've received, I'm of the opinion the open houses achieved their desired intent.
andypanda
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Re: Selling home to "Home Partners of America" ???

Post by andypanda »

"The agent who made me the offer on the company's behalf said they have two non-negotiables in their offer contract"

Said? Have you received a signed written offer to purchase? What does it say? Who signed it?

What did your real estate lawyer say after reading the written offers?
stan1
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Re: Selling home to "Home Partners of America" ???

Post by stan1 »

When you get multiple written offers you go out to ALL the offerors plus those who visited at the open house and say: There are multiple offers, submit your best and final offer by 6 PM two days hence.

Verbal offers mean nothing.

That's what the realtor you didn't want to pay for would have done for you. What is your attorney doing?

If you do that the professional investor will almost certainly not be giving you the best offer.
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RickBoglehead
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Re: Selling home to "Home Partners of America" ???

Post by RickBoglehead »

stan1 wrote: Sat Apr 24, 2021 9:09 am When you get multiple written offers you go out to ALL the offerors plus those who visited at the open house and say: There are multiple offers, submit your best and final offer by 6 PM two days hence.

Verbal offers mean nothing.

That's what the realtor you didn't want to pay for would have done for you. What is your attorney doing?

If you do that the professional investor will almost certainly not be giving you the best offer.
This ^^^^
SwampDonkey wrote: Sat Apr 24, 2021 8:01 am
RickBoglehead wrote: Fri Apr 23, 2021 10:44 pm You priced too low.

Never have open house.
I would typically agree with you about open houses but with the amount of interest we've received on the home, it was impossible to manage individual showings. Well over 40 inquiries over the past 48 hours. With the number of offers we've received, I'm of the opinion the open houses achieved their desired intent.
The open house is problematic because:

- You let in realtors who then went looking for clients, including those that would have used Zillow (assuming you listed there) and found you without a realtor. Now they'll come to you and want a commission to bring the client. So, what did FSBO gain you?

- You let in tons of unqualified buyers. Why? Managing showings is easy, when you require pre-approval...


We did a FSBO on a cottage last Fall. When contacted by a realtor, who said they had a buyer, we asked for them to submit their signed Buyer's Agent agreement. Many balked, because in fact they were not acting as a Buyer's Agent, and either had been showing a buyer around without signed paperwork, or were maybe gaining a potential buyer via Zillow (where we put in the listing to NOT click on Contact Agent, click on Contact Buyer).

We told any agent that presented a signed Buyer Broker agreement that we would then discuss fees. None presented one. We sold directly to a buyer that an agent told to come to us directly.


The main purpose of FSBO is to not pay a commission. How are you accomplishing that?

We controlled the process. Anyone wanting to see the property had to be pre-qualified, just like a real estate agent is supposed to do with prospective buyers. Once they presented their pre-qualification or pre-approval paperwork, then they were eligible to see the property. We had more than one agent say "I have a client who is pre-qualified for $X (where $X was below the asking price), can they see the property?" Answer was - no, go get paperwork that says they can afford the property.

We also had a real estate attorney, and a ready-to-go "Offer to Buy Real Estate" that any buyer would have to use. We controlled the process, not an agent, that's what FSBO is for.
Last edited by RickBoglehead on Sat Apr 24, 2021 9:31 am, edited 2 times in total.
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andypanda
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Re: Selling home to "Home Partners of America" ???

Post by andypanda »

After reading some of their site, I now see that they have a prospective renter sign an agreement and qualify. Then the agent in the local market goes looking.


"Find A Home

Prospective residents will work with a REALTOR® to find a home in an approved community."

What happens if the prospective renter/buy-to-own person backs out/forfeits, or the deal doesn't work out on the corporate end? Do you get to keep the deposit? Who pays for you to relist and resell your home?

________________

Just looking at the list of maximum home values they will accept, the numbers for Richmond VA and the VA and MD suburbs of DC aren't very high. Heck, the DC area max numbers are only $50k higher than Richmond. I don't think $450k buys very much in Northern VA.

Here's one that's listed on a local NoVA site as Pending.
"$449,000
2bed 1bath 816sqft 8,843sqft lot
10843 Warwick Ave, Fairfax, VA, 22030"
SethJane42
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Re: Selling home to "Home Partners of America" ???

Post by SethJane42 »

Never heard of such a company. Nor do I like the idea of selling to someone with a out of the ordinary terms. I suggest you at least work with a real estate lawyer if you're selling on your own and thinking of selling to this company. I also suggest using a realtor in the future, if the person is good, it's worth their cut.
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SwampDonkey
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Re: Selling home to "Home Partners of America" ???

Post by SwampDonkey »

Lots of good responses here, I'll try and respond to all of the comments...
andypanda wrote: Sat Apr 24, 2021 8:56 am "The agent who made me the offer on the company's behalf said they have two non-negotiables in their offer contract"

Said? Have you received a signed written offer to purchase? What does it say? Who signed it?

What did your real estate lawyer say after reading the written offers?
Answer: Yes, it was a formalized and signed contract - no different than any other contract, along with proof of funds (it's a cash offer). The Realtor, who has done quite a bit of business on behalf of this company, told me the only things he was aware of that were non-negotiable were the two items I listed. It was not written anywhere but I do understand the business justification for these non-negotiables.
stan1 wrote: Sat Apr 24, 2021 9:09 am When you get multiple written offers you go out to ALL the offerors plus those who visited at the open house and say: There are multiple offers, submit your best and final offer by 6 PM two days hence.

Verbal offers mean nothing.

That's what the realtor you didn't want to pay for would have done for you. What is your attorney doing?

If you do that the professional investor will almost certainly not be giving you the best offer.

Answer: I agree; every received offer has been formal and accompanied with a pre-approval letter. All attendees of the open houses received notification of when the date/time in which best and final offers were due. Following the first received offer; everyone was informed there was an offer (at or above list price) in-hand.
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SwampDonkey
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Re: Selling home to "Home Partners of America" ???

Post by SwampDonkey »

RickBoglehead wrote: Sat Apr 24, 2021 9:24 am The open house is problematic because:

- You let in realtors who then went looking for clients, including those that would have used Zillow (assuming you listed there) and found you without a realtor. Now they'll come to you and want a commission to bring the client. So, what did FSBO gain you?

- You let in tons of unqualified buyers. Why? Managing showings is easy, when you require pre-approval...

The main purpose of FSBO is to not pay a commission. How are you accomplishing that?

We controlled the process. Anyone wanting to see the property had to be pre-qualified, just like a real estate agent is supposed to do with prospective buyers. Once they presented their pre-qualification or pre-approval paperwork, then they were eligible to see the property. We had more than one agent say "I have a client who is pre-qualified for $X (where $X was below the asking price), can they see the property?" Answer was - no, go get paperwork that says they can afford the property.

We also had a real estate attorney, and a ready-to-go "Offer to Buy Real Estate" that any buyer would have to use. We controlled the process, not an agent, that's what FSBO is for.
Hi Rick,
1. We listed on MLS, Zillow, Realtor.com, etc... --- all of the primary sites. There are realtors who offer "limited listings" for a minimal fee which gives you access to the MLS, etc.
2. Of the numerous offers we've received, none were unqualified.
3. The main purpose of a FSBO is to not pay a seller's commission. We are accomplishing this.
4. I appreciate the way you controlled your process, it seems to have worked well for you. Our process was different but worked well for us.
5. I agree with having a supporting team on standby.
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RickBoglehead
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Re: Selling home to "Home Partners of America" ???

Post by RickBoglehead »

How are you avoiding a Seller's commission by accepting offers from realtors?
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Millennial
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Re: Selling home to "Home Partners of America" ???

Post by Millennial »

RickBoglehead wrote: Sat Apr 24, 2021 9:24 am When contacted by a realtor, who said they had a buyer, we asked for them to submit their signed Buyer's Agent agreement. Many balked, because in fact they were not acting as a Buyer's Agent,
Real estate practices are super local, so I am not sure whether this is the case in your locale - but there are plenty of markets in the US where is it atypical (or even seen as a red flag) if a buyer's agent asks for an exclusive agreement. When we bought our first house, we were certainly serious but our agent would not have been able meet your demands. This might not be the case where you are located but readers should not take it as gospel.
Last edited by Millennial on Sat Apr 24, 2021 5:32 pm, edited 1 time in total.
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SwampDonkey
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Re: Selling home to "Home Partners of America" ???

Post by SwampDonkey »

andypanda wrote: Sat Apr 24, 2021 9:28 am After reading some of their site, I now see that they have a prospective renter sign an agreement and qualify. Then the agent in the local market goes looking.
Yeah, I did quite a bit of research on them this morning and it's an interesting business model. Prospective buyers who know they won't qualify for their own financing go through this company to receive this company's version of a pre-approval. Once they are pre-approved, they work with a realtor to find a house they'd like to lease-to-purchase. So long as the house is within one of the market areas that this company serves, the realtor submits the home to the company for their review and if it meets their buying standards, they give a cash offer to the owner, all while having a contract already drawn up with their prospective tenant who intends to lease-to-purchase.

The interesting thing I discovered is it's somewhat of a race for the realtors who work with this company to submit the prospective houses for consideration. In my instance, unbeknownst to me, three different people were working with realtors for this program and all three of them wanted our house. However, only the person who's realtor was the first to submit it for consideration is now eligible for the contract.

Definitely a new process I was not aware of until this weekend.
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Re: Selling home to "Home Partners of America" ???

Post by chazas »

RickBoglehead wrote: Sat Apr 24, 2021 5:25 pm How are you avoiding a Seller's commission by accepting offers from realtors?
In this market? All you have to do is say I'm not paying, or not paying more than x%. Realtors only get paid what you contract to pay them. If the buyer doesn't have a signed buyer agency agreement, and the seller doesn't agree to pay a commission, they get zilch. Of course they may not bring their buyers to the listing.
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Re: Selling home to "Home Partners of America" ???

Post by Big Dog »

OP:

If you like their price, adn their Title company is market competitive, just counter with 30-day close, all cash, no contingency, i.e., they can pay for their inspection, but if they cancel the deal based on something that they find, they forfeit the deposit. Otherwise, thank you for your time and we will continue to market the home.

fwiw: I too believe that you have underpriced the house, and are leaving money on the table due to FSBO.
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