Felix Homes, The Company That Guarantees They’ll Sell Your Home In 90 Days - Or They’ll Buy It.
New York, NY – Felix Homes, a tech-enabled real estate platform, announced today that they will be launching in June 2018. Felix pays home sellers thousands of dollars just for the right to list their home for 90-days. If Felix can’t find a buyer within the 90-day period, they’ll purchase it at a slight discount giving sellers peace of mind.
Felix: Fixing The Broken Home-Selling Experience
Typically, home sellers list with a broker for 6-months and pay a 6% commission if the home sells. Brokers do not guarantee the price or whether the home will sell at all, adding anxiety to this already stressful process. Often, home sellers find themselves trapped in a 6-month listing contract with an underperforming broker. When the 6-month contract expires and their home remains unsold – which happened 2.4 million times last year alone – they find themselves back at square one. Felix changes that.
Felix pays homeowners 1-2% of market value just to list on their platform for 90 days. For example, a seller whose home is worth $400,000 can expect to receive a payment of up to $8,000 just for letting Felix list the home. If Felix is unable to find a buyer within 90 days, they’ll purchase the home at a slight discount so the seller can have the guarantee of a sale from day one. Either way, Felix never charges homeowners a commission.
“Felix was started to help reduce the stress of selling a home,” says Tyler Forte, co-founder, and CEO of Felix. “Homeowners already have so much on their plate which is why we want to help simplify the process. Felix gives them the certainty of a guaranteed sale, an upfront cash payment to help with everyday expenses and an incentive structure that gets them the highest price.”
Agents are not incentivized to get the highest price for sellers
It’s in a real estate agent’s best interest to sell their clients home for slightly less than market value, according to Dr. Steven Levitt, an Economist at the University of Chicago, and Stephen Dubner, a journalist, and writer. This is because getting the home seller the highest price doesn’t significantly impact the agent’s commission. For example, an additional $15,000 in the sales price of a home only adds about $250 to the agent’s commission. No wonder so many homes sell for less than they’re worth.
According to Tyler, “Traditional brokers are not acting in their client’s best interest. That’s why Felix has done away with the commission model, instead, only getting paid when we sell above market value. As a result, Felix only does well when our clients do well!”
How Felix Works
Home sellers go to www.howdyfelix.com and click “Get My Offer”. After providing some simple information about their property, Felix sends over a highly trained Home Value Expert to determine the market value. A few days after the valuation, Felix sends the seller an offer with their ‘sold in 90-days guarantee’. Once the offer is accepted, the homeowner receives their 1-2% payment while Felix focuses on attracting buyers and selling the home for the highest price.
Felix is the only real estate platform that gives homeowners the certainty of a guaranteed sale, an upfront cash payment to help with everyday expenses and an incentive structure that gets them the highest price. Unlike traditional brokers, Felix does not charge a 6% commission. This incentivizes Felix to secure the highest price for their client’s home because they only get paid if the home sells above market value.
Founded 5-months ago in New York, Felix recently completed a blockchain-focused accelerator program to build-out its blockchain solution, leading to a quicker and more secure closing process. To date, Felix has raised an undisclosed amount of outside capital to grow the business. Tyler Forte, the co-founder, and CEO of Felix who also happens to be a former venture capitalist says the company will be raising venture funding in the fall to help scale the model.