The Cash+ is a uniquely structured cash offer that gives the seller the certainty and convenience of a cash offer, while still benefiting from the open market.
Cash+ Process:
Offer is requested:
a. The seller requests an offer by completing the home survey on your landing page; or,
b. You request the offer by “Get Cash Offers” in your agent dashboard.
c. Finalize the offer by clicking on “Get Final Numbers” in your agent dashboard.
d. Final underwritten offer will be returned.
The buyer makes a full market value cash offer to the seller:
a. The offer is automatically returned.
b. If you believe the offer amount is not full market value, please ask the Zoodealio Offers Department (offers@zoodealio.com) to manually review the offer and provide comps or other pertinent information.
c. You’ll receive a text and email when the offer is updated.
d. The offer is good for 2 weeks but can be refreshed at any time.
e. The seller may choose their close date up to 60 days out.
f. If the seller needs more time for the close of escrow or needs a late checkout, let the Zoodealio Offers Department know as each request is reviewed individually.
The Cash+ offer is a structured sale with 2 payouts to the seller:
a. The 1st payout occurs when the buyer purchases the property;
b. The buyer will use you to list and resell the property on the open market;
c. The 2nd payout occurs when the property is resold on the open market.
Fees and risk assessment:
a. Program fee: The buyer charges a program fee, which is their fee for the program. The buyer makes no margin on the sale of the seller’s property.
b. Resale fee: Agent compensation and resale closing costs: The buyer includes a fee for agent compensation and resale closing costs.
c. Reserve: The buyer sets aside a portion of the seller’s equity as a risk assessment to ensure the property sells for the offer amount. The reserve is disbursed to the seller once the property is resold on the open market based on the final resale price
- The seller accepts the offer by clicking “Accept Offer” in the Offer Dashboard.
- The Zoodealio Offers Department will contact you within one business day upon acceptance and send you the Cash+ Addendum along with instructions on how to complete the contract on your state forms and title and escrow instructions.
- All parties sign the contract.
- The buyer opens escrow and deposits earnest money.
The buyer conducts a home inspection and addresses any repair or renovation items.
a. If agreed upon by the seller, the buyer will make repairs to the property after the seller moves out and before the property is listed on the open market.
b. This is an opportunity for the seller to enhance the resale value of the property.
c. The cost of these repairs is withheld from the seller’s proceeds on the 1st payout.
- Customary closing process is completed.
Close of escrow:
a. All parties sign closing documents.
b. The buyer wires funds to the title company.
c. Property closes and the seller receives the 1st payout.
d. You’re paid a 2% compensation on the 1st payout.
e. The seller moves out unless a late checkout addendum is in place.
After the seller moves out, we’ll do the following resale preparation:
a. Any agreed-upon repairs.
b. Interior sales cleaning and yard maintenance.
- The property is listed on the market for the original offer amount. Note: The property can be relisted for a higher price if it’s been improved.
- Once an offer is accepted on the property, the normal real estate transaction proceeds.
- Property closes escrow and you’re paid your remaining compensation.
The reserve is disbursed to the seller less any repair or remodel costs, as follows:
a- If the property sells on the open market for the same amount as the original offer, the entire reserve will be returned to the original seller; or,
b- If the property sells for less than the original offer amount, the difference between the original offer and the final sales price will be deducted from the reserve and the remaining portion will be returned to the original seller; or,
c- If the property sells for more on the open market, the reserve will be returned to the original seller along with any additional proceeds or “upside” of the open market.
- The transaction is complete.
Terms and Fees Defined:
Program fee: This is the fee the buyer charges for the Cash+ program. The typical program fee is 6% but can increase to up to 9.5% for unique or multi-million dollar properties. Keep in mind that once the buyer purchases the property, they will take over the utilities, property taxes, insurance, HOA, and interim property maintenance.
Agent compensation and resale closing costs: This is a fee that covers agent compensations and closing costs on the second sale. The agent compensation and resale closing costs fee is 5.5%.
Compensation: You are paid a compensation of 2% when the buyer purchases the property from the seller. The buyer will use you to list and sell the property on the open market. You’re paid an additional 2% compensation on the second sale. You may charge a higher compensation, which would increase the agent compensation & closing costs fee accordingly.
Reserve: The reserve is a risk assessment the buyer places on the property that is set aside and withheld from the seller’s available equity when the buyer purchases the property and is disbursed to the seller after the property sells on the open market based on the final resale price. This is what allows the buyer to make a full market value offer to the seller. The reserve amount varies from 8% to 30%, depending on economic factors as well as property factors such as the condition, location, amenities, projected timeline to resell, and purchase price of the property.
Inspections: When the seller accepts the Cash+ offer, the buyer will do a home inspection. If the buyer believes any repairs are necessary they will request a credit in lieu of repairs. If agreed upon, the buyer will make repairs after the first closing.
Flip Your Own Home: If the seller is interested in improving the property to maximize the resale value, the buyer will complete minor or major repairs and renovations to be agreed upon during the inspection period. The cost of these repairs will be added to the Reserve and those funds will be used to pay the contractors directly.
Upside: The upside is the additional amount of money when the property sells for more on the open market than the original cash offer amount. Any upside is returned to the original seller.
Cash+ Breakdown Example:
Seller accepts a $500,000 Cash+ offer, with a 6% program fee, 5.5% agent compensation and resale closing costs, and 10% reserve. The property is listed and resold on the open market for $500,000.
| 1ST PAYOUT | |
| Offer amount | $500,000 |
| Program fee - 6% | -$30,000 |
| Agent compensations & resale closing costs - 5.5% | -$27,500 |
| Reserve - 10% | -$50,000 |
| 1ST PAYOUT | $392,500 |
| Less seller’s customary closing costs | TBD |
| Less any mortgage/lien payoffs | TBD |
| 2ND PAYOUT | |
| Final sales price | $500,000 |
| 10% Reserve returned | $50,000 |
| 2ND PAYOUT | $50,000 |
•If the property sells for less than the original offer amount, the difference between the original offer and the final sales price will be deducted from the reserve and the remaining portion will be returned to the original seller.
•If the property sells for more on the open market, the reserve will be returned to the original seller along with any additional proceeds or “upside” of the open market.
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