Crowdfunding your downpayment?

By
Real Estate Agent with Jameson Sotheby's International Realty

Crowdfunding your downpayment.

It seems to be the new "it" thing.  Couples are getting married at a more advanced age, than they were when I was young.  The average age of newly wedding couples, these days, is 27's, 28's, and beyond.  By the age of 27, or 28 when they marry... they've often been living on their own for a while, and have amassed many of the things that we used to "register" for, in the bridal registries.

Even if they did sign up for that microwave, toaster, wok, fondue set (fondue set?), they're often living in a tiny apartment, or they might have had to return to their parent's basement, and they have no room to put all of those unnecessary wedding gifts.

Enter the crowdfunded downpayment from websites such as featherthenest.com, and others.  These sites allow you to send a link out to your friends and family, and hopefully build up that initial downpayment to buy a home.  HatchmyHouse.com says that the average amount raised by their site is $8,000-$8,500.  Perhaps not enough for an actual downpayment, but a really good start.

There has been some pushback, according to downpaymentdreams.com who report that some family members consider the request for cash-money to be a little off-putting.

But, hey, welcome to the new millenium.  It sure beats that fondue set.

Posted by

 ALAN MAY, Realtor®   
Specializing in Evanston Real Estate and North Shore Real Estate

Jameson Sotheby's International Realty, 2934 Central Street, Evanston, IL 60201
Office: 847.869.7300      Cell: 847.924.3313      Email: Almay@aol.com

Evanston Real Estate & North Shore Real Estate
Licensed in Illinois

   

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Tom Burris 07/05/2016 06:57 AM
  2. Winston Heverly 10/08/2016 10:02 PM
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Rainmaker
1,591,611
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

I suspect if people still give money at weddings, then that could be the way to "crowdsource" it without actually asking for the money. 

Jul 05, 2016 08:20 PM #24
Rainmaker
881,709
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

I've been giving cash gifts for years - crowdfunding on a website for a home down payment? I'll just give the gift card and let them work a little! Thanks for sharing

Jul 05, 2016 10:07 PM #25
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Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

It is just another way to find money for down payment for a home. If it works, then do it.

Jul 05, 2016 11:12 PM #26
Rainmaker
1,618,800
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Gee, what will they think of next? Seems like an ok thing to do except when you are the one getting hit up for funds!

Yes the fondue set & crock pot .... fond memories.

Jul 06, 2016 01:17 AM #27
Rainmaker
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Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

When I first started out in this biz there was a HUD program, Bridal Registry which was the same concept.  People could provide cash to the bride as gift funds and it was sourced accordingly.   It's still around.

Jul 06, 2016 03:18 AM #28
Rainmaker
1,546,677
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

It is creative and likely of more long term benefit than a fondue pot!

Jul 06, 2016 05:31 AM #29
Rainer
21,231
Noeleen Duffy
Claddagh Florida Properties - Palm Coast, FL

I guess I am old fashioned because this does not gel well with me, however if that's the way of the future I will just have to get on board whether I feel comfortable with it or not, depending on whether I want to go to the wedding or not!

Jul 06, 2016 07:49 AM #30
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
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                                                  Thank you Alan May 

Jul 09, 2016 10:35 AM #31
Rainmaker
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Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

I have seen this before and I completely agree w/ Cody Carmen 's response.  It's also kind of funny when you think about it...at Bar/Bat Mitzvahs, we used to get lots of bonds from people.  I guess the difference is the "soliciting."

Jul 09, 2016 09:28 PM #32
Rainmaker
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Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I have been to a couple of weddings of 30-somethings where they had honeymoon registries;  once I got over my initial reaction (which was, OMG, that is almost as crass as just asking for cash), I thought it was a pretty cool idea.

Jul 09, 2016 09:32 PM #33
Rainmaker
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Alan. What will they think of next? Will have to visit these sites! Enjoy your day!

Jul 09, 2016 10:13 PM #34
Rainmaker
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Dianne Goode
Raleigh Cary Realty - Raleigh, NC
Realtor/Broker

Hi Alan.  There are sites now where people can "buy" a piece of the honeymoon as a wedding present -- say, a massage for $75 or a scuba diving adventure for $200.   Getting help to buy a house instead makes sense to me.  $50 for a window -- 12 available!

Jul 09, 2016 10:34 PM #35
Rainmaker
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Dorie Dillard CRS GRI ABR
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Alan May,

I caught your post on Kathy Streib 's post this morning on her "Ah-ha" moments for the week. I hadn't heard of these sites before but it does make sense. I'd rather give a gift that means something that is not going to be stored aways and never used!!

Jul 09, 2016 10:44 PM #36
Rainmaker
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Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Whatever it takes Alan, whatever it takes!

Jul 09, 2016 11:06 PM #37
Rainmaker
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Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

I hadn't heard of these sites before. Interesting concept. In our high-cost area, saving for that down payment is often the biggest hurdle to overcome. 20% of $750,000 (a very modest, 2BR/1BA condo) is a big chunk of change.

Jul 10, 2016 12:31 AM #38
Rainmaker
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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Want to see a home sure.  Do you have a preapproval yes.

Do you have $200K in the bank as emd?  No. Sorry I do not think we can help you. No sellers will consider <20% down.  

Jul 10, 2016 02:32 AM #39
Rainer
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Linda Metallo DiBenardo
RE/MAX Impact, Lockport, Illinois - Lockport, IL

I've heard of crowd-funding (soliciting) money for a honeymoon, which actually had a menu to choose from...You could  buy breakfast ($), lunch ($$),  dinner ($$$), a one night stay at their hotel ($$$$) and so on.

Crowd-funding for a house down-payment ?   Seems to me the responsibility for a house downpayment should rest on the shoulders of the buyers.

Jul 10, 2016 03:19 AM #40
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Paul S. Henderson, REALTOR®, CRS
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This new generation will try to make their dreams come true by any means Alan May 

Jul 10, 2016 07:53 AM #41
Rainmaker
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Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

With the cost of College Tuition and no promise for a job that pays enough to pay off student loans, this sounds like the perfect solution to make other happy and help young couples (regardless of age) to land on their feet in their own homes. 

Jul 10, 2016 10:32 AM #42
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Alan May Just linked to this post about starting a "house account."

Jul 15, 2016 03:42 AM #43
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