After putting in so much work to renovate the Orem house ourselves and save money, it seemed like a natural extension to sell the house ourselves, avoid real estate commissions and maximize our profit. When we heard about Homie, a service that has freeway billboards on the I-15 screaming things like, "avoid the sin of commission" we were onboard.
Hopefully this is helpful if you're in Utah and you're interested in either selling your home yourself or are thinking about using Homie. This is pretty detailed, let me know if you have any questions.
THE GOOD
1. The Money
If you take the traditional route and go through a realtor, you pay your relator 3% of your home's selling price and you pay the buyer's relator 3%. That's 6% people! So if you sell your house for $300,000 you pay $18,000!!! I don't know about you, but I have other uses for that money.
With Homie, they charge a flat fee (it's about $1,000) instead of taking 3%. Included in their fee is your yard sign, a professional home photographer, listing your home on the MLS, Zillow, KSL homes, & Trulia, as well as support from their real estate attorneys who do all your paperwork and provide advice.
You decide if what, if any, commission you're willing to pay the buyer's relator. We decided to pay the full 3% because we wanted to sell and we wanted agents to be motivated to show the house to their clients. I think it was a wise move because six of the seven offers we received were made with traditional agents.
Even with the 3% Buyers Agent Commission (BAC) we still saved over $9,000 using Homie. If that's all you read, know we feel like Homie was worth it just because of that.
2. In Our Comfort Zone
David's job at the real estate investment firm he works for is identifying and coordinating financing and purchasing of apartment complexes across the country. David knows real estate. Obviously the multi-family market is more his wheel-house but he's still super knowledge about the process of single family home purchasing.
While Homie does offer some good articles and their support team can be responsive they do not hold your hand like a relator does. If you've never bought or sold a home and are unfamiliar with how the process works, I don't know that I'd recommend selling your home yourself or even using Homie. It would probably be stressful and there's a good chance it wouldn't go as well. Nobody is watching the deadlines in your contract for you, you are initiating and communicating with your lender, inspector, title company, buyer's agent etc.
Not only do they not hold your hand as far as the process, their marketing support is just listing the home and making sure you have good photos. You do all the tours, staging, question answering, communicating with agents, etc.
Luckily for us our city's real estate market was hot this summer. There was limited inventory and a lot of people looking to buy homes. Our mother-in-law apartment drew a lot of attention. We also watched a neighbor's home sell and mimicked their relator's strategy of listing it pre-open house and not doing any tours prior to the open house to build hype and it worked for us. I also obsessively read home staging tips, we did so many pre-listing cosmetic projects, and then ran our own successful open house (our final buyers came to that open house).
3. We Both Committed
We tagged teamed the process and played to our strengths. David did all the heavy lifting on getting the house really ready to sell- a lot of yard stuff and painting. I coordinated all the cleaning (windows, kitchens, bathrooms) and the staging and pre-packing. I did almost all the tours and was the point of contact for all the scheduling. David did the Scotty hanging out during the open house and during evening tours. I made a spreadsheet of offers to compare apples to apples. I communicate with our Homie attorney as well as the title agency while David works with the lender.
Obviously, you'd still need to do some of this if you had a relator but it wouldn't have to be self-directed or motivated. I think for you to have a good experience, you definitely need a good partner through the DIY process.
THE NOT SO GOOD
1. Squeaky Wheel Gets the Grease
Homie Support is definitely not unresponsive but also it's an email only help line and they're obviously slammed. Only 2 of our 7 offers made it to our Homie dashboard and the only reason there's 2 is because one offer was submitted via Homie and the other I specifically asked them to upload. The rest I kept organized in my email/spreadsheet. We had to hear from the buyer's agent that we under contract. Homie literally never told me, I had to email them and ask them to confirm we were under contract because I hadn't received the signed contract. I then had to email three times before they finally changed our Homie listing as "under contract." Luckily I think I only had to email once or twice to get them to change the MLS listing.
Basically the sign up/set up process is smooth sailing but their limitations show once you get into the hairy, fast paced offer period. It's stressful because offers come with response deadlines and suddenly you're trying to track down pre-approval letters which relators are telling you they submitted to Homie but you can't access them because they aren't on your dashboard and haven't been emailed to you. Luckily you have your Homie assigned attorney's cell number and if you keep emailing support they will get back to you.
Basically, you really need to pay close attention to what's going on and keep asking for help when it's important. They're also really nice and know they're not 100% on top of everything so that was appreciated. This wasn't great but was the hassle worth 9k? Heck yes.
2. The Platform has Problems
So besides the manual upload of offers, I heard over and over from relators and potential buyers that the Homie scheduling system is glitchy and hard to use. It's frustrating because I wanted the process to be as easy as possible for buyers to come look at the house. I also heard from our attorney that they're switching systems so she sometimes didn't have paperwork or offers.
For example, we sent out a best and final notice to our first 4 or 5 offers and she had a hard time figuring out who came back with new offers because of their system. This is obviously not great and stressful. Luckily, a lot of people really wanted the house and were willing to work with us when we said, "hey, sorry can we extend our response deadline a little?"
3. "Avoid the Sin of Commission" isn't Completely Accurate
So this didn't apply to our selling experience but to our buying experience but it's still important to know whatever side you're on. Homie recently became an official brokerage. That means in the eyes of the law and title companies, you're using a traditional real estate service.
What happens is the title agency reads the contract and takes commission and gives it to the relators involved. Now that Homie is a brokerage, if they are representing you on the buy side, they will collect the 3%. They say they do this in part to protect you as the buyer. Previously, sell side relators would take advantage of the fact there was no buy side relator and take the entire 6% commission allotted by the seller.
Now Homie will give you as the buyer some of the 3% commission they collect from title back (I think the amount they give you back depends on the title company's rules or something like that) but THEY KEEP THE REST!!! That's right, Homie now takes commission.
This matters when you want to make a lower offer based on the fact you don't have a relator taking commission because technically you do have a relator. We offered 3% less than asking on the home we're buying because we thought there was no commission. Luckily if you ask, Homie will provide an escrow instruction document for title stating there is no commission to be give and both you and the sellers sign it.
But to me, I think all their marketing about "no commission" is kind of misleading. Our attorney was upfront about it so I guess that kind of makes up for it but it's once again one of those catches where if you're unfamiliar with the process you could get burned.
Sorry for the novel, but hopefully this helps one person who is looking to move and save some money! I would potentially try doing it all the way myself next time to save the extra $1,000 but I really have enjoyed the legal support as well as the online listing and photography so maybe we'll stick with Homie. Overall positive experience, but definitely not for real estate newbies.
Hopefully this is helpful if you're in Utah and you're interested in either selling your home yourself or are thinking about using Homie. This is pretty detailed, let me know if you have any questions.
THE GOOD
1. The Money
If you take the traditional route and go through a realtor, you pay your relator 3% of your home's selling price and you pay the buyer's relator 3%. That's 6% people! So if you sell your house for $300,000 you pay $18,000!!! I don't know about you, but I have other uses for that money.
With Homie, they charge a flat fee (it's about $1,000) instead of taking 3%. Included in their fee is your yard sign, a professional home photographer, listing your home on the MLS, Zillow, KSL homes, & Trulia, as well as support from their real estate attorneys who do all your paperwork and provide advice.
You decide if what, if any, commission you're willing to pay the buyer's relator. We decided to pay the full 3% because we wanted to sell and we wanted agents to be motivated to show the house to their clients. I think it was a wise move because six of the seven offers we received were made with traditional agents.
Even with the 3% Buyers Agent Commission (BAC) we still saved over $9,000 using Homie. If that's all you read, know we feel like Homie was worth it just because of that.
2. In Our Comfort Zone
David's job at the real estate investment firm he works for is identifying and coordinating financing and purchasing of apartment complexes across the country. David knows real estate. Obviously the multi-family market is more his wheel-house but he's still super knowledge about the process of single family home purchasing.
While Homie does offer some good articles and their support team can be responsive they do not hold your hand like a relator does. If you've never bought or sold a home and are unfamiliar with how the process works, I don't know that I'd recommend selling your home yourself or even using Homie. It would probably be stressful and there's a good chance it wouldn't go as well. Nobody is watching the deadlines in your contract for you, you are initiating and communicating with your lender, inspector, title company, buyer's agent etc.
Not only do they not hold your hand as far as the process, their marketing support is just listing the home and making sure you have good photos. You do all the tours, staging, question answering, communicating with agents, etc.
Luckily for us our city's real estate market was hot this summer. There was limited inventory and a lot of people looking to buy homes. Our mother-in-law apartment drew a lot of attention. We also watched a neighbor's home sell and mimicked their relator's strategy of listing it pre-open house and not doing any tours prior to the open house to build hype and it worked for us. I also obsessively read home staging tips, we did so many pre-listing cosmetic projects, and then ran our own successful open house (our final buyers came to that open house).
3. We Both Committed
We tagged teamed the process and played to our strengths. David did all the heavy lifting on getting the house really ready to sell- a lot of yard stuff and painting. I coordinated all the cleaning (windows, kitchens, bathrooms) and the staging and pre-packing. I did almost all the tours and was the point of contact for all the scheduling. David did the Scotty hanging out during the open house and during evening tours. I made a spreadsheet of offers to compare apples to apples. I communicate with our Homie attorney as well as the title agency while David works with the lender.
Obviously, you'd still need to do some of this if you had a relator but it wouldn't have to be self-directed or motivated. I think for you to have a good experience, you definitely need a good partner through the DIY process.
THE NOT SO GOOD
1. Squeaky Wheel Gets the Grease
Homie Support is definitely not unresponsive but also it's an email only help line and they're obviously slammed. Only 2 of our 7 offers made it to our Homie dashboard and the only reason there's 2 is because one offer was submitted via Homie and the other I specifically asked them to upload. The rest I kept organized in my email/spreadsheet. We had to hear from the buyer's agent that we under contract. Homie literally never told me, I had to email them and ask them to confirm we were under contract because I hadn't received the signed contract. I then had to email three times before they finally changed our Homie listing as "under contract." Luckily I think I only had to email once or twice to get them to change the MLS listing.
Basically the sign up/set up process is smooth sailing but their limitations show once you get into the hairy, fast paced offer period. It's stressful because offers come with response deadlines and suddenly you're trying to track down pre-approval letters which relators are telling you they submitted to Homie but you can't access them because they aren't on your dashboard and haven't been emailed to you. Luckily you have your Homie assigned attorney's cell number and if you keep emailing support they will get back to you.
Basically, you really need to pay close attention to what's going on and keep asking for help when it's important. They're also really nice and know they're not 100% on top of everything so that was appreciated. This wasn't great but was the hassle worth 9k? Heck yes.
2. The Platform has Problems
So besides the manual upload of offers, I heard over and over from relators and potential buyers that the Homie scheduling system is glitchy and hard to use. It's frustrating because I wanted the process to be as easy as possible for buyers to come look at the house. I also heard from our attorney that they're switching systems so she sometimes didn't have paperwork or offers.
For example, we sent out a best and final notice to our first 4 or 5 offers and she had a hard time figuring out who came back with new offers because of their system. This is obviously not great and stressful. Luckily, a lot of people really wanted the house and were willing to work with us when we said, "hey, sorry can we extend our response deadline a little?"
3. "Avoid the Sin of Commission" isn't Completely Accurate
So this didn't apply to our selling experience but to our buying experience but it's still important to know whatever side you're on. Homie recently became an official brokerage. That means in the eyes of the law and title companies, you're using a traditional real estate service.
What happens is the title agency reads the contract and takes commission and gives it to the relators involved. Now that Homie is a brokerage, if they are representing you on the buy side, they will collect the 3%. They say they do this in part to protect you as the buyer. Previously, sell side relators would take advantage of the fact there was no buy side relator and take the entire 6% commission allotted by the seller.
Now Homie will give you as the buyer some of the 3% commission they collect from title back (I think the amount they give you back depends on the title company's rules or something like that) but THEY KEEP THE REST!!! That's right, Homie now takes commission.
This matters when you want to make a lower offer based on the fact you don't have a relator taking commission because technically you do have a relator. We offered 3% less than asking on the home we're buying because we thought there was no commission. Luckily if you ask, Homie will provide an escrow instruction document for title stating there is no commission to be give and both you and the sellers sign it.
But to me, I think all their marketing about "no commission" is kind of misleading. Our attorney was upfront about it so I guess that kind of makes up for it but it's once again one of those catches where if you're unfamiliar with the process you could get burned.
Sorry for the novel, but hopefully this helps one person who is looking to move and save some money! I would potentially try doing it all the way myself next time to save the extra $1,000 but I really have enjoyed the legal support as well as the online listing and photography so maybe we'll stick with Homie. Overall positive experience, but definitely not for real estate newbies.
