The Reali Trade-In program is different from others in that homeowners buy a new home first, before selling their old one. The idea is to try and eliminate the financial burden and stress of managing two very difficult transactions at once, the company said.
Reali’s offer works like this. First it helps the seller find a new home to buy, and once a suitable property has been found it purchases it on their behalf with cash. The seller then moves into their new home, allowing Reali to prepare their old home for listing. This step includes taking care of any repairs and staging etc. Then, once the home has been sold, Reali uses the proceeds as the repayment for the seller’s new home, at no additional cost to the customer. That’s unlike traditional real estate transactions, where the customer has to pay fees on both. Reali simply charges a one-time percentage of the transaction amount for its services, which include using a licensed real estate agent, a five day closing period, and property inspection.
“We are simplifying two of the most stressful events in modern life: buying and selling a home,” Amit Haller, Reali’s CEO, said in a statement. “We reworked the process so sellers can conveniently get into the home they want first with our cash while paying a competitive price. Then, we’ll sell their existing home for the highest price possible.”
The Reali Trade-In program is currently available in California.
Similar home trade-in programs have already proven popular. So-called iBuying firms such as Opendoor and Knock provide a service that’s not so different, buying people’s homes and then listing those properties by itself. This means sellers can get an instant cash offer and begin looking for a new home right away. But rather than buying the seller’s home outright, Reali is actually holding it on the seller’s behalf until a buyer is found.
Reali also launched a mortgage business earlier this year called Reali Loans after its acquisition of Lenda, which operates in 12 states. Reali has raised nearly $40 million in funding rounds over the last few years, including $9 million so far this year.