With a strong economy, a growing population, and significant price appreciation, the Denver real estate market is competitive and can be a challenge to enter, especially for first time home buyers. While the market is slowly returning to normal, many new homes listed for sale continue to receive multiple offers and some even get all-cash offers.
So if you’re looking to buy a home, how can you possibly compete with an all-cash offer that will close in days instead of a month or more? This is a situation many buyers have encountered and it’s even discouraged potential buyers from entering the market. How can we solve this problem?
Meet Board!
I first read about Board when the company made a big splash in the Denver Post earlier this month. In the most simple explanation, Board buys homes for buyers with cash and then sells the home back to the buyer.
There must be a catch, right? Nope, there’s just one extra step involved (that most buyers won’t even notice) that can help a buyer beat out other offers. And it’s all done at a price that’s competitive with traditional lending options.
How Board Works
Board employs licensed mortgage brokers and will pre-approve a buyer before the house search begins. Once a buyer finds a home, Board works with the buyer’s agent to write an all-cash offer based on the terms the buyer dictates. When the offer is accepted, Board works closely with the buyer and agent and brings the cash to closing.
Once Board closes on the home, Board then prepares a mortgage note and sells the home to the buyer, who become the new owners. Just like most mortgage brokers, Board will sell the buyer’s mortgage on the secondary market after it closes. The entire process can all be done within a matter of weeks.
Here’s a quick recap:
- Board does a complete underwriting of a buyer to ensure they can qualify for a mortgage
- Buyer finds a home and Board writes a cash offer on the home on behalf of the buyer
- Board and seller close on home purchase
- Board then sells the home to the buyer using a mortgage note
The Board Guarantee
You may be wondering how you can be sure Board will actually sell you the home you want to put an offer on. Well, it’s all part of the agreement buyers have with Board, where Board guarantees to sell the buyer the house once Board closes on the deal with the original seller.
As CEO Adam Pollack told me, “Board is legally obligated to sell you the home.” From Board’s perspective, holding onto the home just costs them money that isn’t part of their business model.
And speaking of business model, how does Board make money? As a mortgage company, Board exclusively generates revenue from the loan. There is no additional fee for buyers, sellers, or agents when working with Board.
Another Tool for your Home Buying Toolkit
As a realtor, it’s heartbreaking to see your clients disappointed when their offer isn’t the one selected. You’ve developed a close relationship and want to do everything in your power to help them into a new home, but sometimes things are just out of your control. That’s why when I read about Board, I wanted to learn more about the company.
After speaking with the team and seeing their passion for helping people buy a home, I think Board is a great option for buyers. Does it make sense to use Board for every transaction? Probably not. But Board can be an invaluable option for buyers when they’re competing against others in a multiple offer situation.
Learn more about Board at www.board.live