{"id":2085,"date":"2020-01-20T14:07:15","date_gmt":"2020-01-20T22:07:15","guid":{"rendered":"https:\/\/www.flyhomes.com\/blog\/?p=2085"},"modified":"2022-05-26T12:04:54","modified_gmt":"2022-05-26T19:04:54","slug":"what-it-means-to-win-77-more","status":"publish","type":"post","link":"https:\/\/flyhomes.com\/blog\/what-it-means-to-win-77-more\/","title":{"rendered":"What it means to win 77% more"},"content":{"rendered":"\n<p>In 2019, Flyhomes Cash Offer clients won the home they love 77% more than expected. But what does that really mean? We\u2019ll break it down.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>First, what is a cash offer?<\/strong><strong> <\/strong>&nbsp;<\/h4>\n\n\n\n<p>A cash offer is an offer to buy a home without a mortgage. Sellers love cash offers &#8230; learn why in our <a href=\"https:\/\/www.flyhomes.com\/blog\/the-beginners-guide-to-why-cash-offers-are-awesome\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Beginner\u2019s Guide to Why Cash Offers are Awesome<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>So what\u2019s a Flyhomes Cash Offer?&nbsp;<\/strong><\/h4>\n\n\n\n<p>The <a href=\"https:\/\/www.flyhomes.com\/buy\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Flyhomes Cash Offer program<\/a> enables homebuyers to make a cash offer even if they don\u2019t have the liquid equity. We buy the home with the company\u2019s funds. Later, we transfer ownership to our client for the same price.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Let\u2019s talk about winning.&nbsp;<\/strong><\/h4>\n\n\n\n<p>A cash offer can help you win, meaning your offer is chosen by the seller in a competitive situation and you get to buy the home. By &#8220;competitive,&#8221; we mean when there are two or more offers on the same home.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Now, let\u2019s talk about winning <\/strong><strong><em>more<\/em><\/strong><strong>.&nbsp;<\/strong><\/h4>\n\n\n\n<p>There are three parts.&nbsp;<\/p>\n\n\n\n<p><strong>Part one: expected win rate<\/strong><\/p>\n\n\n\n<p>When we talk about winning more than expected, we start with the \u201cexpected\u201d part.&nbsp;<\/p>\n\n\n\n<p>Given that there is more than one offer on a home, we <em>expect<\/em> to win one time out of the total number or offers. <\/p>\n\n\n\n<p>For example,  if there are five offers, we&#8217;d expect to win one time (1 in 5, or 20%). This is because we don&#8217;t know what the other four offers are &#8230; so we don&#8217;t know if our offer is the strongest. On average, each offer has one chance to be the strongest. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/MdmyV6L4wErX7w8A4wNwFVWH3YT11VOu7iXpRgWWahHPHN16sh78KC5pMYA6PXw_6jyaYPU4uOYEUHUvJbqDOrAxflbhnJFEenKfNaBFL6wDAMl9R6fScDDQrvfpRlAYIxnql3GN\" alt=\"\" \/><\/figure><\/div>\n\n\n\n<p><strong>Part two: winning more than expected<\/strong><\/p>\n\n\n\n<p>In reality, our Cash Offer clients win more than the expected 20% of the time when there are five offers on a home (which was the median number of offers on a home with competition in 2019). Winning more shows the power of a cash offer.&nbsp;<\/p>\n\n\n\n<p>How much more? Instead of the expected 20%, in 2019, our Cash Offer clients won 53.3% of the time when there were five offers.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/WXZ5UZGkGaYo1_CDGyyErJZRJ_U_yqbaKTYEj0YkeLc1aa0Vho83dscI3SQ2nytQkfsMGSrZBLCMlIJPC6iVQEvca2fcngj7NV7_I1EQP1qX4YMXoguK0hbWqJwpXewqeUMIe1Ep\" alt=\"\" \/><\/figure><\/div>\n\n\n\n<p><strong>Part three: outperformance<\/strong><\/p>\n\n\n\n<p>Now that we know about winning more than expected, we\u2019re only one step away from understanding the data that Flyhomes Cash Offer clients win 77% more.&nbsp;<\/p>\n\n\n\n<p>The final step has to do with outperformance.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s a straightforward example: If you expect to win 25% of the time and you actually win 50% of the time, you\u2019ve <em>outperformed<\/em> expectation by 100%.&nbsp;<\/p>\n\n\n\n<p>Instead of winning one in four, you\u2019d win two in four. Two is 100% more than one.&nbsp;<\/p>\n\n\n\n<p>The calculation goes like this: 50% \/ 25% &#8211; 1 = 100% outperformance.&nbsp;<\/p>\n\n\n\n<p>Using the median case of a home with five offers, our clients outperformed by 167.7%. Remember, the expected win rate was 20%. The actual rate was 53.3% (53.3% \/ 20% &#8211; 1 =167.7%).<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Bringing it all together<\/strong><\/h4>\n\n\n\n<p>So far, we\u2019ve talked about the median case of a competitive home with 5 offers as an example.&nbsp;<\/p>\n\n\n\n<p>When we go beyond that to include all of the competitive situations in which Flyhomes Cash Offer clients won a home in 2019, the expected win rate is 22%. The actual win rate is 39%. So the outperformance is 77.7% (39% \/ 22% &#8211; 1 = 77.7%).<\/p>\n\n\n\n<p>In other words, overall our Cash Offer clients win (slightly more than) 77% more than expected \u2026 and now you know exactly what that means.&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator\" \/>\n\n\n\n<p class=\"has-text-align-center\">Let&#8217;s win together! <\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background\" href=\"https:\/\/youtu.be\/4Se8g7VbeuE\" style=\"background-color:#1b1464\">Watch ON YOUTUBE<\/a><\/div>\n\n\n\n<hr class=\"wp-block-separator\" \/>\n\n\n\n<input type=\"hidden\" id=\"calendly_utm_post_id\" value=\"2085\" \/><input type=\"hidden\" id=\"calendly_utm_post_title\" value=\"What it means to win 77% more\" \/>","protected":false},"excerpt":{"rendered":"<p>A little math, a lot of understanding how our clients are able to get the homes they love, even when there&#8217;s competition. <\/p>\n","protected":false},"author":148668397,"featured_media":2143,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"no","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[655421606],"tags":[109100],"class_list":["post-2085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-about-flyhomes","tag-home-buying"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What it means to win 77% more - Blog<\/title>\n<meta name=\"description\" content=\"A little math, a lot of understanding how our clients are able to get the homes they love, even when there&#039;s competition.\" 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