System And Method Of Providing Firm Cash Offers For Uninspected Assets

A method of providing firm cash offers for uninspected assets is provided. The method comprises a computer generating and transmitting an offer to purchase an uninspected asset, the offer comprising a range of contingent purchase prices based on results of a future inspection of the asset, the computer determining the contingent purchase prices using at least one algorithm, and one of the contingent purchase prices becoming a firm cash purchase price upon completion of the inspection. The method also comprises the computer receiving acceptance of the offer, the acceptance agreeing to sell the asset for the firm purchase price determined based on results of the inspection. The method also comprises the computer closing, upon completion of the inspection, purchase of the asset at the firm purchase price determined based on the inspection and further, based on proceeds realized during subsequent liquidation of the asset, refining the at least one algorithm.

CROSS REFERENCE TO RELATED APPLICATIONS

FIELD OF THE DISCLOSURE

The present disclosure is in the field of expediting large transactions on electronic platforms. More particularly, the present disclosure is in the technical field providing sellers of large uninspected assets a range of contingent purchase prices based on asset condition and rapidly funding transactions after inspection.

BACKGROUND OF THE DISCLOSURE

Parties selling large assets, for example residential real estate, seek to realize the best value from their sales with a minimum investment of time and expense. Selling one's home can become a time consuming and onerous process. Extensive dealings with real estate brokers and prospective buyers visiting and viewing one's home, often on short notice, can become stressful for a seller. Further, negotiations with buyers can become drawn out. Buyers can encounter problems with securing mortgage financing due to credit and other problems. The seller may encounter unexpected expense in making repairs and improvements and incurring legal fees. If the seller is moving to another city for a job change, for example, the seller may have to relocate to the new city before the seller's home in the previous city is sold, complicating the seller's financial situation and presenting logistical challenges to the seller at a time when the seller wishes to concentrate on his or her new job. Consequently, a need is perceived to streamline and simplify the process of selling residential real estate.

SUMMARY OF THE DISCLOSURE

In an embodiment, a method of providing firm cash offers for uninspected assets is provided. The method comprises a computer generating and transmitting an offer to purchase an uninspected asset, the offer comprising a range of contingent purchase prices based on results of a future inspection of the asset, the computer determining the contingent purchase prices using an at least one algorithm, and one of the contingent purchase prices becoming a firm cash purchase price upon completion of the inspection. The method also comprises the computer receiving an acceptance of the offer, the acceptance agreeing to sell the asset for the firm purchase price to be determined based on the results of the inspection. The method also comprises the computer closing, upon completion of the inspection, purchase of the asset at the firm purchase price determined based on the inspection. The method also comprises the computer, based on proceeds realized during subsequent liquidation of the asset, refining the at least one algorithm.

In an embodiment, a system of providing firm cash offers for uninspected assets is provided. The system comprises a processor, a memory, and an application stored in the memory that, when executed on the processor generates and transmits an offer to purchase an uninspected asset, the offer comprising a range of contingent purchase prices based on results of a future inspection of the asset, the contingent purchase prices determined using an at least one algorithm, and one of the contingent purchase prices becoming a firm cash purchase price upon completion of the inspection. The system also receives an acceptance of the offer, the acceptance agreeing to sell the asset for the firm purchase price to be determined based on the results of the inspection. The system also closes, upon completion of the inspection, purchase of the asset at the firm purchase price determined based on the inspection. The system also, based at least on proceeds realized during subsequent liquidation of the asset, refines the at least one algorithm.

In an embodiment, a method of providing firm cash offers for uninspected assets is provided. The method comprises a computer receiving a request for an offer to purchase an uninspected asset, the asset comprising at least one item of real property. The method also comprises the computer accessing a first set of information sources for a first data to provide to at least one algorithm for generating the purchase offer, the first set of information sources comprising multiple listing services and property tax records. The method also comprises the computer determining that the first data is inadequate to generate the offer. The method also comprises the computer accessing a second set of information sources for a second data to provide to the at least one algorithm for generating the offer, the second data comprising at least one of physical dimensions of the real property, type of construction of the real property if any, and information about similar and neighboring properties. The method also comprises the computer generating and communicating the offer based at least on processing by the at least one algorithm of the second data, the offer containing a range of contingent purchase prices based on results of a future inspection of the asset, wherein one of the contingent purchase prices becomes a firm cash purchase price upon completion of the inspection.

DETAILED DESCRIPTION OF THE INVENTION

The present disclosure provides systems and methods for evaluating assets for potential purchase prior to physical inspection of the assets. Based at least on access to widely accessible information sources and specialized analysis of selected data drawn from the sources, a set of contingent purchase offers is provided, prior to inspection, to prospective sellers of the assets. The set of contingent offers is based on a range of potential results of physical inspection of the property, expressed in terms of the property's condition. The property may be items of residential real estate. The contingent offers are for cash purchase of the property to be completed on an expedited basis.

Upon the prospective seller accepting this arrangement of a series of offers contingent upon inspection, the property is inspected. Based on inspected condition, the contingent offer of the set of contingent offers corresponding to the condition found upon inspection becomes the actual price for the sale of the property. The transaction may then be finalized and closed.

Systems and methods provide for accessing extensive information sources including multiple listing services and property tax records. Data from these sources is incorporated into evaluations of properties not yet inspected. At least one algorithm provided herein analyzes the data and assists in determining the set of contingent amounts to offer to a prospective seller based on pending inspection. When a property acquired using a valuation generated by the algorithm is subsequently liquidated and proceeds are realized, the results and insights gained therefrom may be used to refine the algorithm.

Parties interested in disposing of property in a safe and expedient manner may electronically contact an entity, for example a real estate investment firm, that implements the systems and methods provided herein. Such prospective selling parties may initiate contact via Internet connection to a World Wide Web site or other venue provided by the investment firm. The firm's website may offer to pay cash for real estate with an instant cash offer based on, for example, five possible conditions of the subject property, the condition to be determined after inspection. The five possible conditions may be unlivable, poor, average, good, and excellent.

Investment firms and others may seek to acquire properties on such an expedient basis for immediate liquidation, for long term investment, or for other purposes. Such entities may operate specialized systems including hardware components that execute software including the at least one algorithm described above. The specialized systems may aid in evaluating candidate properties for investment. The software, which may be an application executing on a server, may receive the street address or other identifying information about the property from the prospective seller via Internet communication from the prospective seller. The application, which includes or has access to the algorithm, draws upon multiple listing service information and property tax information to develop its set of cash offers to the prospective seller based in part on possible physical conditions to be determined after inspection.

As noted, the investment firm or other entity may subsequently liquidate properties they acquire earlier using at least systems and methods provided herein. Based on proceeds realized and other results of the liquidations, the investment firm may refine the algorithm, for example altering weights applied to inputs or changing at least some of the inputs altogether. Such adjustments may allow the algorithm to more accurately predict values of uninspected properties.

Turning to the figures,FIG. 1depicts a block diagram of a system of providing firm cash offers for uninspected assets according to an embodiment of the present disclosure.FIG. 1illustrates a system100provided herein comprising a server102, application104, algorithm106, client devices108,110,112, information sources114,116, and a network118.

The server102is a computer system. Computer systems are described in detail hereinafter. The server102may be operated or otherwise controlled by an entity, for example an investment firm or asset manager, seeking to purchase assets. The assets may be items of real property. In embodiments, the server102is more than one computer system and includes additional hardware as well as software necessary to host an Internet web site simultaneously accessible by a large quantity of client devices108,110,112that require rapid responses to their inquiries.

The application104executes at least on the server102. The application104receives, processes, and replies to messages sent by the client devices108,110,112sent via the World Wide Web or other medium. The messages from the client devices108,110,112may be submitted via web browsers or other software while accessing a website or other electronic venue hosted by the server102. The messages may be sent by the client devices108,110,112requesting offers from the entity for properties that parties associated with the client devices108,110,112may wish to sell. The application104encompasses web-based and server-based software used to provide for a large quantity of client devices108,110,112to contact the system100and receive rapid and full service.

The algorithm106is a set of mathematical functions executed as part of the application104. In an embodiment, more than one algorithm106may be used by the application104. Remarks herein about the algorithm106are applicable to embodiments involving two or more algorithms106. The algorithm106assists in generating valuations of assets, including items of real property, which have not yet been physically inspected. The algorithm106receives inputs from at least one information source114,116and performs mathematical, statistical, and other operations on the inputs. The inputs may be information about a subject property, information about similar or nearby properties, or may be information not directly related to properties but still of use in evaluating the subject property. The algorithm106may apply weights or apply other statistical factors to inputs while subjecting the inputs to various mathematical operations.

As noted, the server102and the application104executing thereon receive a large flow of web based inquiries from client devices108,110,112. The inquiries contain at least street address information for properties that parties using the client devices108,110,112may be considering for sale. The application104seeks to provide a range of contingent offers in response to each inquiry. Each of the contingent offers in the range of contingent offers is associated with physical conditions that may be discovered upon inspection. The discovered physical conditions may be one of unlivable, poor, average, good, and excellent. In an embodiment, other designations for physical conditions may be used. The investment firm or other entity operating the server102, not having yet physically viewed a subject property and therefore relying upon the information sources114,116, seeks to provide contingent cash offers that will accurately align with the conditions of the property but also be attractive to the prospective seller using a client device108,110,112. The investment firm seeks to induce the seller to accept the arrangement described herein.

Since the property has not been inspected and its actual condition is not known, the application104attempts to be accurate in its evaluations based on all five potential conditions. It is not enough for the system100to provide accurate cash offers based, for example, on assumed unlivable, average, and perfect conditions while accompanying cash offers for poor and good conditions miss their marks and may lead the entity into an unprofitable situation should the property turn out to be in either poor or good condition. A central task of the system100is to choose the appropriate information sources114,116to draw upon in a given situation but also apply the algorithm106properly so that all five of the contingent offers contained in a response back to the requesting client device108,110,112are accurate. In embodiments, accuracy entails selecting the correct data to evaluate but also properly applying statistical methods of at least the algorithm106such that the range of offers is both attractive to the seller and likely to result in a profitable situation for the entity.

The information sources114,116are publicly and privately available databases and other repositories of information about real property. In an embodiment, the real property is residential property. The information sources114,116may be a multiple listing service (MLS). An MLS is a suite of services that provides as a facility for orderly correlation and dissemination of property listing information to better serve various parties to real estate transactions. An MLS enables parties to establish contractual offers of compensation among themselves and may accumulate and disseminate information to enable valuations and other services.

Information sources114,116may also comprise property tax records and other public records wherein transactions and other information involving real estate are recorded. The application104may access tax records regarding title matters, sale transactions, property conditions, liens and encumbrances, and valuations. The tax records may be provided by databases operated by public taxing entities or private providers of property tax and associated data.

Information sources114,116may also be commercial aggregators and providers of information about real property. They may be banks, lenders, mortgage brokers, accountants, or attorneys that gather and process information about real property.

In an embodiment, a property may never have been subject to a sale and purchase transaction or may have been subject to such transactions so many years prior that traditional information sources114,116such as multiple listing services and property tax records may not provide useful information. Other information sources114,116may have to be drawn upon by the server102for assistance. The other information sources114,116may provide information including dimensions of subject property, type of construction, and information, including recent transactions, about similar and neighboring properties to the subject property. The algorithm106may be modified or adapted to incorporate data from such information sources114,116.

The client devices108,110,112are used by parties that may seek to sell items of real property to a real estate investment firm or other entity operating the server102and application104. The client devices108,110,112may be desktop computers, laptop computers or wireless devices including cell phones. Such client devices108,110,112may be web enabled with Internet browser software or other network access capability to enable the client devices108,110,112to contact the computer102. Client devices108,110,112may, via the Internet, access web pages provided by the server102wherein the client devices108,110,112may enter the address of a property for sale and receive contingent cash offers for the property as provided herein.

The network118promotes communication between the components of the system100. The network118may be any communication network including a public data network (PDN), a public switched telephone network (PSTN), a private network, and/or a combination thereof.

Aspects of the system100described above may be implemented on a computer system with sufficient processing power, memory resources, and network throughput capability to handle the necessary workload placed upon it. The computer system includes a processor (which may be referred to as a central processor unit or CPU) that is in communication with memory devices including secondary storage, read only memory (ROM), random access memory (RAM), input/output (I/O) devices, and network connectivity devices. The processor may be implemented as one or more CPU chips.

Secondary storage is typically comprised of one or more disk drives or tape drives and is used for non-volatile storage of data and as an over-flow data storage device if RAM is not large enough to hold all working data. Secondary storage may be used to store programs which are loaded into RAM when such programs are selected for execution. The ROM is used to store instructions and perhaps data which are read during program execution. ROM is a non-volatile memory device which typically has a small memory capacity relative to the larger memory capacity of secondary storage. The RAM is used to store volatile data and perhaps to store instructions. Access to both ROM and RAM is typically faster than to secondary storage.

FIG. 2depicts a flowchart of a method200of providing firm cash offers for uninspected assets according to an embodiment of the present disclosure. The method200may use components provided by system100. Beginning at block202, a computer generates and transmits an offer to purchase an uninspected asset, the offer comprising a range of contingent purchase prices based on results of a future inspection of the asset, the computer determining the contingent purchase prices using at least one algorithm, and one of the contingent purchase prices becoming a firm cash purchase price upon completion of the inspection.

At block204, the computer receives an acceptance of the offer, the acceptance agreeing to sell the asset for the firm purchase price to be determined based on the results of the inspection. At block206, the computer closes, upon completion of the inspection, purchase of the asset at the firm purchase price determined based on the inspection. At block208, based on proceeds realized during subsequent liquidation of the asset, the computer refines the at least one algorithm. The method200terminates thereafter.

FIG. 3depicts a flowchart of a method of providing firm cash offers for uninspected assets according to an embodiment of the present disclosure. The method200may use components provided by system100. Beginning at block302, a computer receives a request for an offer to purchase an uninspected asset, the asset comprising at least one item of real property. At block304, the computer accesses a first set of information sources for a first data to provide to at least one algorithm for generating the purchase offer, the first set of information sources comprising multiple listing services and property tax records.

At block306, the computer determines that the first data is inadequate to generate the offer. At block308, the computer accesses a second set of information sources for a second data to provide to at least one algorithm for generating the offer, the second data comprising at least one of physical dimensions of the real property, type of construction of the real property if any, and information about similar and neighboring properties. At block310, the computer generates and communicates the offer based at least on processing by the at least one algorithm of the second data, the offer containing a range of contingent purchase prices based on results of a future inspection of the asset, wherein one of the contingent purchase prices becomes a firm cash purchase price upon completion of the inspection. The method300terminates thereafter.