Home for sale (Getty)
Innovating the home sale process through artificial intelligence
Simply Homes says they're poised to revolutionize the real estate industry. What normally takes real estate investors two weeks takes Simply Homes just 30 seconds thanks to innovative AI underwriting platform. More than that, Simply Homes is compelled by a crystal-clear mission: to give everyone “fair shake, a fair deal, and the honesty to tackle tough situations with human dignity.”
House listings can fall into one of three categories: The Turnkey that’s move-in ready, the Tear Down that can’t be financed, and everything in between. Most homes need work; that punch list of touch-ups and repairs is meant to optimize the listing price. But what if you don’t have the cash to make those improvements? Can you afford to put money into a house without the guarantee of making it back when it sells? What if you can’t even make your next mortgage payment?
Every day, homeowners decide to sell their homes due to difficult situations. A disability or accident can decimate a household’s income while adding mountains of medical debt. An aging homeowner may suddenly find themselves unable to live independently. The loss of a partner through divorce or death can make a once affordable mortgage payment seem suddenly out of reach. The recent downturn in real estate can make this feel even more urgent, more desperate.
Brian Bagdasarian, the founder of Simply Homes, a data-driven real estate investment platform, has seen this all happen in real-time. In 2020, a loved one needed to sell their home. They received several lowball offers from local “investors” wanting to buy her home for a fraction of the post-renovation value. The family worked together to find a better deal from a reputable buyer, but the process was eye-opening. “We lucked out in this situation,” Bagdasarian recalls. “But what happens to people who aren’t as lucky?”
The experience compelled Bagdasarian to dig deeper. He says he examined how and why homeowners fall victim to predatory offers and loans. He also looked at the rising demand for affordable homes, often in the same areas that have a high number of distressed properties. Relying on his expertise in financial service and lending, he assessed the underlying issues. Then, he worked on the problem. “I am a data junkie,” he confesses. “I spent years in artificial intelligence and human process automation.”
Basically, wherever there’s a person making a decision, Bagdasarian says he can automate it with the right data. After months of analysis and development, he came up with a solution he believed could change the real estate industry. The result was Simply Homes.
Simply Homes is taking a new approach to home sales for properties that are distressed by condition or financing. Bagdasarian is proud of the pricing engine he built that analyzes hundreds of data points influencing home value including the age of the home, necessary repairs, zip code, crime rates, comparable area sales, commute distance, current market demand, and much more. This information, along with a questionnaire for the homeowner, a 3d scan, and a virtual walkthrough, helps Simply Homes create an “as-is” value for the home, sight (physically) unseen. If its underwriting platform determines that the home is a fit for its investment model, then Simply Homes will offer to buy the property with the goal of renovating and reintroducing that home into its community at a fair price. Simply Homes gives an informed recommendation to each homeowner based on their particular need and property, regardless of whether or not that seller chooses to move forward with Simply Homes.
Bagdasarian says the key is the data. “In order for us to have the space to be empathetic to the homeowner, we have to be highly analytical [about the home itself],” Bagdasarian explains. “We only make offers that we know will work. We are agent-friendly and are happy to make that referral. We are only ever looking for the best solution for that seller, and we may not always be it. We have and will walk away from making money if it’s not right for the homeowner.”
“Our approach is revolutionary,” remarks Bagdasarian. What normally takes lenders two weeks takes Simply Homes just 30 seconds. More than that, Simply Homes is compelled by a crystal-clear mission: to give everyone a “fair shake, a fair deal, and the honesty to tackle tough situations with human dignity.”
Bagdasarian explains this all with the fervor of someone who truly believes in what they’re doing. He approaches his work with a sense of obligation that comes from knowing you have a special ability to help others. He breaks down this complex concept into terms that are easy to understand, using real-life examples and scenarios to make it relatable.
Like the homeowner who was talked into a lease option on her income property that essentially allowed an intermediary to collect rent on her property—and not pay her a cent. After a few months, she found herself unable to pay the mortgage on both the income property and her own home after being fleeced out of the rental income. Simply Homes helped her unwind the agreement, fronting money to buy out the unscrupulous but somehow legal contract. They paid her mortgage so she wouldn’t lose her home. They helped her regain control of her property and offered a fair market value for her home that let her move on from what could have been a financial disaster.
“We’re not in this to maximize profit,” Bagdasarian emphasizes. “We operate in a financial model that isn’t unattainable to somebody that doesn’t have our resources. If we do this enough, we’ll make money while still doing good. We can afford to take less money to do the right thing because of the volume. That is a motivation that few in the real estate investment industry share.”
The offshoot of this approach is revitalizing neighborhoods—not to be confused with gentrifying. “I’m not trying to work with homes that are high-end. I’m not looking to move communities. I’m trying to build a business that can reintroduce homes to neighborhoods, so that people who work in that community can afford to live there.”
Simply Homes can operate anywhere in the country. When asked why they’re based out of Portland, Maine, Bagdasarian answers, “Why wouldn’t we be based in Portland? It’s gorgeous here. I live surrounded by farms, yet only a few minutes from the ocean. It’s a great place to raise my family. But I can be in the office in 15 minutes and offer tech opportunities to people who might not have otherwise. Portland has all the makings of a vibrant start-up community.”
Simply Homes is currently focused on markets in the Midwest where homes are sold for lower prices than you might see on the coasts, and the need for affordable housing is high. The goal is to be nationwide by the end of 2023 with the continued support of investment partners. Above all, the mission is to help. “I’ve learned in my life that if I can sleep easily, I’m doing the right thing,” says Bagdasarian. “I sleep very soundly.”
For more information about Simply Homes, check out their BBB Business Profile. To learn more about BBB and read more stories like this, visit Behind the Business Stories.
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