“If only we could pay cash, we’d get that house.”
Statements such as that have become commonplace during the nation’s housing crunch – the demand continues to outstrip supply – but one startup is here to help.
Austin-based Homeward, whose role speeds the home-buying process, is finding a sweet spot among its clients and is rapidly expanding, having raised $136 million in a Series B funding round at a valuation “just north of $800 million” to keep the growth trend moving.
The company has also secured $235 million in debt financing.
Tim Heyl founded Homeward in 2018, and the company operates in Texas, Colorado and Georgia.
“The pandemic has greatly increased demand for our product,” Heyl told TechCrunch. “It’s a historic seller’s market with unprecedented demand from buyers and the lowest inventory levels in decades.”
Heyl’s idea makes sense, especially if you’ve purchased a home in the traditional manner. He observed time after time that some buyers couldn’t afford to buy a new home until they sold their existing home.
So Homeward clients receive credit to make an all-cash offer on new homes and can then buy back their home from Homeward once their mortgage is ready.
The Austin American-Statesman wrote:
“The company also lets people buy a new home before they list and sell their existing home. If the existing home doesn’t sell within six months, Homeward buys it at a prearranged price. Once the existing home is sold and the new home’s mortgage is finalized, the new property is bought back from Homeward.“
The company partners with real estate teams, and the service is available to any real estate agent.