Homeowners who need to buy and sell a house at the same time have long had to choose between shouldering two mortgage payments at once, or paying the costs of moving twice and temporary housing. But no longer. A new class of real estate technology companies has emerged to streamline the process and help homeowners have an integrated dual transaction. Seattle-based Flyhomes is one such company.
Flyhomes helps house hunters buy, sell, buy and sell at the same time, and close more efficiently. But customers of Flyhomes may have a hard time navigating these transactions if they’re new to real estate, and they’ll pay a premium for the convenience.
Flyhomes is a power buyer founded in 2016 by Tushar Garg and Steve Grossman, who have leveraged their backgrounds in real estate, finance, and machine learning to grow the online real estate brokerage. The company helps homebuyers compete in a competitive housing market by offering trade-in services, cash-backed offers, and home selling and buying guarantees.
Flyhomes offers their customers a variety of services. We break them down below:
House hunters who are only looking to buy can utilize this service to turn their financed offer into a cash-backed one. These offers are generally considered more competitive to sellers as there is less risk of the sale falling through. Buying with Flyhomes has the additional advantage of no fees for the buyer, since the fees are paid by the seller.
A significant drawback to this service, however, is that buyers don’t have a dedicated buyer’s agent during the process. This can lead to confusion for novice homebuyers, and even has the potential to end in less favorable terms for the buyer, since they don’t have an invested advocate during negotiations at closing.
Flyhomes also offers a standard listing service and a no-frills discount broker-adjacent service for sellers. The full listing service offers home sellers home prep and photography at industry standard rates of 2% to 2.5%. While the simpler version offers to list homes without any home prep or photography for as little as 1.25% to 1.5%.
Alternatively, when you work with Orchard, we invest in professional listing prep, saving you over $1,800.
This program helps homeowners move into their new house before selling their old one, to minimize the risk of overlapping mortgage payments or finding temporary housing if the closing dates don’t line up. Flyhomes approves buyers for a mortgage before they make an offer, then once their offer is accepted, Flyhomes purchases the home for them. Buyers then have 90 days to purchase the home back from Flyhomes, typically using the proceeds from their home sale.
But this service comes with a cost: Flyhomes charges buyers a daily rental fee for living in the new home, typically $100 to $200 per day. That could mean paying as much as $6,000 to $12,000 in rent if your old home takes 60 days to sell. Depending on how much equity you have built up in your home, that could significantly cut into the proceeds from your home sale.
Curious how much you could make from selling your home? Use our Home Sale Calculator to find out:
This is the company’s title and escrow arm. Customers who use this branch of the company can streamline their transaction by not using third-party services and save on closing fees. For example, Flyhomes charges a flat fee of just $1,000 for escrow, which typically costs 1% to 2% of the purchase price of the home.
Flyhomes makes money from several sources. First, it drives revenue through real estate commissions, as most brokerages do. It also has a mortgage company which charges service fees and interest on the loans it issues, as well as a title and escrow service that makes money by charging standard industry fees.
Flyhomes is a legitimate business that provides brokerage, mortgage, title and escrow services to their customers. They operate in six states nationwide — Washington, California, Oregon, Massachusetts, Texas, and Colorado — and, at the time of writing this article, have bought and sold $3.7 billion worth of real estate.
Flyhomes has favorable reviews on a variety of online forums, including Zillow (5 out of 5 stars), the Better Business Bureau (A+ rating and accreditation), and Trustpilot (4.7 out of 5 stars).
The positive reviews cite Flyhomes’ convenience and breadth of Flyhomes services — many called out the cash offer as necessary in securing their home. While negative reviews report frustrations with the refinancing process and a lack of transparency during the closing process.
That being said, the company appears to be responsive. At the time of writing this article, Flyhomes had replied to each of the negative reviews on Trustpilot (Zillow reviews does not enable replies and the company had no negative reviews on BBB).
Flyhomes offers a robust array of services for both homebuyers and sellers, but each of these comes with an advantage and disadvantage. Weigh the pros and cons before deciding whether or not to work with this online brokerage.
Maybe Flyhomes isn’t for you but you’re still interested in working with an alternative to traditional real estate. Below are some alternatives to consider:
For homeowners who need to buy and sell at the same time but want the advantage of an experienced and local real estate agent dedicated to your needs, Orchard is a strong alternative to Flyhomes.
Our Move First service helps homeowners buy a new house before selling their old one, without the daily fees Flyhomes charges. Here’s how Orchard works:
Interested in learning more? Get started with a free valuation — our estimates are 30% more accurate.
Orchard guarantees your home will sell, so you can buy your next one worry-free.
On top of a guaranteed sale, 95% of Orchard customers sell for more on the open market.
Use our home sale calculator to estimate your net proceeds.
Our Home Advisors are experienced local agents who know how to sell for top dollar and help win your dream home.
All Orchard Home Advisors are experienced agents who know your local market inside and out. Request a consult today.
Did you know cash offers are 4x more likely to be chosen by a seller? Let us help you make one on your next home.
Orchard’s home value estimates are 30% more accurate.
Orchard Home Loans shops the market to find your best rates.
A cash offer is 4x more likely to be chosen by a seller. Get qualified today.
Make a cash offer now, and Orchard will sell your old home after you move.
Tell us your must-haves to see personalized home recommendations that meet your criteria.