Print this. Bring it to the call.
We've done dozens of pitch calls with every major program. The ones that pass these twelve questions with flying colors — Zoom Casa, HomeLight, Knock — are the ones we rank highest. The ones that hedge, deflect, or “have to check with underwriting” are the ones whose PSAs usually hide their worst terms.
The valuation
- How is the appraised value determined — in-house AVM, third-party appraiser, or hybrid? Third-party beats in-house. Hybrid (AVM with human reviewer) is the modern standard.
- Is the appraised value you quote me the same number that will appear on the PSA? Sometimes the quote is generous and the PSA value gets revised down after a walk-through. Pin it now.
- What specific factors can reduce the appraisal after I've accepted the offer? There should be a list. If the answer is vague, assume the program reserves broad discretion.
The money
- What is the cash advance at first close, as a percentage of appraised value, and is that percentage contingent on anything? Some programs quote “up to 100%” but most sellers actually get 85–95%.
- What is the total fee, all-in, as a percentage of home value — including service fee, commission, carry, and expected repair deductions? Use our fee estimator to pressure-test their answer.
- If the home sells for above the appraised value, what percentage of the overage do I receive, and how is “overage” defined? The definition matters almost more than the percentage. Zoom Casa defines it as sale price minus appraisal; some competitors subtract marketing costs, staging, buyer concessions, and carry first.
The timeline
- What is the expected time from signing to first close, and what penalty applies if you miss that window? Programs should commit to a specific number of days (often 14 or 21) with a refund of earnest money if they miss.
- What happens if the retail listing takes longer than expected — is there a forced price reduction, and when? Some PSAs give the program unilateral authority to cut price after 45 days. You want that capped or require your consent.
The operator
- Who holds title between first and second close, and what happens to my interest if the program is acquired, files for bankruptcy, or exits this product line? This is the question that outed two programs in 2024–2025 that shut down mid-transaction. Every program should have a clean answer.
- Can you send me the PSA template for my state, unsigned, so I can review it with an attorney? Serious programs say yes without hesitation. Programs that say “we'll send it after you accept the offer” are gating your diligence on your commitment.
The reputation
- Can you connect me with two recent sellers in my ZIP or similar ZIPs who used your product? Not testimonials on the website — actual sellers. A program operating at scale should be able to find two. If they can't, that itself is a signal.
- What is your current 30-day average spread between appraised value and final sale price in my market? This is a statistic they track internally. If they won't share it, assume it's unfavorable. Healthy programs run 2–5%.
Scoring the answers
If a program answers all twelve cleanly and the answers appear in the PSA exactly as stated, they're a serious operator regardless of what rating we've given them. If they hedge on more than two, read the PSA particularly carefully — the ambiguity is usually in the seller's unfavor.
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