Business Concept Overview
The difference between the cash price and the financed price creates an opportunity for a win/win/win deal with Keen, you and your buyers. Keen can be the all cash buyer for the property that your buyer designates. Our process ensures that your buyer doesn’t have remorse that he or she declined to buy directly from the seller. You will submit your buyer’s higher priced offer (with loan and other contingencies) to the seller. If the seller accepts your buyer’s offer, you don’t need us. If the seller accepts Keen’s cash offer, then Keen will be committed to sell to your buyer at a price that is predetermined. We can’t ensure that either offer is accepted by the seller, but if your buyer ends up with the property, you’ll get your commission based on cash purchase price.
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Current Market Issue
- Imbalance between supply and demand making buyers, particularly in certain price range, less likely to successfully get a home; often beat out by cash or very high offers.
- FHA/VA/Conventional Loans take longer, are subject to contingencies which can result in delayed close or other issues which consistently make their offer less desirable if competing with cash offer.
- Certain price range particularly sensitive to this; approximately $100-400k. Significant time is spent by agent and buyer looking at properties and unsuccessfully submitting offers.
- Buyer becomes frustrated and drops out of the buying process or settles for a property that they are less satisfied with.
Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible. - Francis of Assisi
How It Works
- Buyer identifies property listed for $200,000 that they are willing to spend up to $215,000 to purchase their dream home.
- Presumably this will be a multiple-offer situation, so they utilize this program to submit offer.
- Buyer’s agent submits offer:
Contract A (Submitted by Buyer’s Agent)
$215,000 purchase price on behalf of buyer.
FHA loan, normal deadlines closing in 30-45 days.
Contract B(Submitted by Keen)
$205,000 closing in 12 days, inspection quick, appraisal waived.
Purchase completed in 12 days and Keen owns the property.
Final Contract (Between Keen and Final Buyer)
Final contract is between Keen and Buyer for $213,400.00 closing in 30-45 days
(This includes the fee to Keen).
Re-executed on day 12 once Keen owns the property (for lending purposes)
- Presumably this will be a multiple-offer situation, so they utilize this program to submit offer.
- Buyer’s agent submits offer:
Contract A (Submitted by Buyer’s Agent)
$215,000 purchase price on behalf of buyer.
FHA loan, normal deadlines closing in 30-45 days.
Contract B(Submitted by Keen)
$205,000 closing in 12 days, inspection quick, appraisal waived.
Purchase completed in 12 days and Keen owns the property.
Final Contract (Between Keen and Final Buyer)
Final contract is between Keen and Buyer for $213,400.00 closing in 30-45 days
(This includes the fee to Keen).
Re-executed on day 12 once Keen owns the property (for lending purposes)
The Buyer
- Pre-Qualified, strong buyer with good credit using conventional loan.
- Buyer has additional cash to cover closing costs as well as any difference in appraised value (should there be any).
- Sees value in creating a circumstance where they move from a less desirable to a very desirable buying position and understand the benefits and costs associated.
What Does This Mean To You As An Agent
- Your client is more likely to secure the home of their choice.
- You have a tool at your disposal which differentiates you from other agents.
- Your client may even purchase the property for LESS than what they would otherwise be willing to pay/have to pay if their contract was selected without this program.
- You will spend less time driving clients to see properties and submitting offers that aren’t selected... saving you AND your client time and frustration in the buying process.
- You will be paid your commission at execution at the final closing of the final purchase.
- You may be more likely to take on buyers in this challenging price range where you would otherwise possibly pass on them.
If opportunity doesn't knock, build a door. - Milton Berle
Flyer
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Commonly Asked ?'s
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