I wanted something that got everybody the best outcome while creating transparency in what has been historically a pretty opaque market.”
JOSH STECH CEO, CO-FOUNDER SUNDAE
“a marketplace for houses that need love.” The company connects home sellers to thousands of qualified buyers who are looking for prop- erty investment opportunities. The homes are typically ones that are not ready for the end consumer because they need significant investment before the owner occupant buyer can move into it. Stech says their goal is to serve both sides of the transac- tion: sellers get competitive offers to ensure the best potential price for their home, while investors get a reliable partner for finding proper - ties to grow their business. “I wanted something that got everybody the best outcome while creating transparency in what has been historically a pretty opaque market,” said Stech. I wanted to try to help both sides of the transaction and hopefully build a valuable com- pany in the process.” Sundae’s marketplace makes them unique in the off-market home sales category and different from cash buyers or wholesalers. Once a seller decides to work with Sundae,
the company packages and pres- ents the property to thousands of local property investors who bid on the house without having to visit the property. Many of Sundae’s custom- ers receive dozens of offers for their property within just a few days. This gives sellers a competitive set of offers to choose from, and more than would be manageable if the seller had to do the work of calling indi- vidual cash buyers themselves. The offer spread in Sundae’s market- place is $71,000 on average, accord- ing to Stech. The seller not only ben- efits from having Sundae manage a
competitive offer process, but there’s no fee to the seller. “The price an investor is willing to pay for any given house is very subjective and varies from investor to investor. If you look at our average offer spread, it goes to show, if you are a homeowner, just calling an investor or two, means you are leaving money on the table,” he said. “That is what Sundae is all about—helping make sure that does not happen.” In addition to skipping the has- sle of home repairs, cleanings, and showings, Sundae’s value proposi- tion to sellers includes a few other
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