What is Upside Protection? Can you explain what happens if HomeLight needs to purchase the home at day 90?
We absolutely want the client to sell the home within the 90 day program period, but in the event they don’t, we purchase the home at day 90. While this is incredibly rare, we continue to use the same Listing Agent while ensuring the client has Upside Protection. If HomeLight purchases the home, the client will receive any excess funds less our 2.4% program fee and any additional costs (taxes, insurance, etc.) incurred during HomeLight’s ownership after it resells on the market.
How much time does my client have to sell the home after moving?
The listing agent has 21 days to list the departing residence after the new home closing if not already listed. The client and their agent have a total of 90 days to sell/go under contract before HomeLight’s backup offer goes into effect.
What does Loan Payment Value (LVP) mean?
HomeLight’s “Loan Payoff Value” is simply the sum of the existing mortgage and the Equity Unlock amount. This allows us to payoff the client’s liens if, in the worst case we purchase the home, before we deliver the upside from the 3rd party sale.