RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

New Report From zavvie Explores How Innovative Buying and Selling Services Are Changing the Real Estate Landscape

Home Agents
By RISMedia Staff
June 7, 2022
Reading Time: 3 mins read
New Report From zavvie Explores How Innovative Buying and Selling Services Are Changing the Real Estate Landscape

The way Americans buy and sell real estate is changing forever as new, innovative solutions are now available nationwide.

iBuyers provide sellers with instant offers. Power Buyers employ “cash offers” and “buy before you sell” bridge solutions for home buyers. Rent-to-own programs create new buyers and expand the marketplace. Presale renovation services help sellers maximize their profits. All these new problem-solvers are finding growing consumer demand and high acceptance.

In a new report, zavvie explores the new, “Modern Marketplace” for real estate, fully detailing the explosive growth of these businesses. The zavvie Modern Marketplace Report examines the changes in the real estate landscape throughout the U.S. during the first quarter of 2022.

A software technology company that provides real estate brokerages with a marketplace for buying and selling solutions via white-labeled platforms, zavvie is replacing its Seller Preferences Report with this new study, expanding the company’s insight into these innovative services.

“Not too long ago, options for home sellers and buyers were scarce,” noted Stefan Peterson, zavvie chief data officer and co-founder. “Sellers had one option: list on the open market. Buyers had two: pay cash or get a traditional mortgage loan. Today, the landscape has been modernized and is radically different,” he added.

Among the new study’s findings in Q1 2022:

  • Power Buyers, now operating nationwide, are fundamentally changing how real estate works as they dramatically increase the consumer’s power as a homebuyer and are poised to make the “cash offer” and “buy before you sell” modern bridge the norm in real estate.
  • From Q1 to Q3 2021, Power Buyer transactions grew 3X, then stabilized in the seasonally slower Q4 2021 and Q1 2022.
  • The average sales price for Power Buyer purchases jumped between Q4 2021 and Q1 2022, as more high-priced “buy before you sell” transactions took place.
  • Power Buyer offer acceptances remained in the 35% to 40% range, with fees ranging between 0%-3%.
  • iBuyers managed to thrive despite headwinds of the strongest seller’s market on record. In Q1, iBuyer purchases were nearly 2x what they were in Q1 last year.
  • iBuyers Opendoor and Offerpad accounted for 120,000 transactions last year, approximately 1.3% of the U.S. market.
  • Institutional buyers such as Amherst, Invitation Homes, Tricon and First Key collectively purchased about 1 in 20 homes in the U.S. last year — 4X as many as iBuyers.
  • The average iBuyer purchase price tapered during Q1, partly attributed to Zillow Offers winding down. Average offer amounts also dropped during Q1.
  • Offer strength for iBuyers peaked at 104.1% of market value in Q2 2021 and was at 98.7% in Q1 2022.
  • iBuyer service fees at Offerpad and Opendoor are 5% for Q1, comparable to real estate commissions, typically 5% to 6%.
  • Seller concessions — the amount iBuyers charge sellers for “prep and repairs” — dropped to 2.9% in Q1 from 3.5% in Q4 2021.
  • iBuyer offer acceptance rates continue to decline, down to 3.2% for Q1 from 5.7% in the first half of 2021.
  • Listing Concierge – presale renovation services – activity skyrocketed. Enabling home sellers to pay for repairs at closing, their approach maximizes proceeds. The average renovation project is $42,000, as many cap projects; some Listing Concierge firms are completing renovations of $200,000 or more.
  • Rent-to-Own or Homeowner Accelerator firms, which help consumers choose a house they want to live in, then rent it with an option to buy in the future, are setting new records for sales — and capital investment.
  • Homeowner Accelerator Divvy Homes, for example, reported closing more homes last year than in the first four years since its founding in 2017.
  • Homeowner Accelerator firms Divvy, HALO, and Landis have raised over $1.8 billion.
  • Home Partners of America, the well-established category leader among Homeowners Accelerator firms with its “lease with the right to purchase” program, was acquired by Blackstone Group in June 2021 for $6 billion, placing it among the largest residential real estate firms of any type.

One of the most significant trends emerging from the zavvie report is the continued expansion of the Modern Marketplace, particularly among Power Buyers. Knock reported its transaction volume was up 307%. UpEquity saw year-over-year revenue growth surge to 500%. EasyKnock increased its customer base by 200% last year, and Homeward reported 375% growth in homes under contract.

Peterson notes that the common thread among all the Modern Marketplace choices is high customer satisfaction.

“Ultimately, the consumer will determine if a business is delivering good value,” he said. “The vast majority of consumers who have used one of the Modern Marketplace solutions are glad they did and would do it again.”

To view the complete zavvie Modern Marketplace Report visit zavvie.com/modern-marketplace-report.

Tags: Modern Marketplace ReportZavvie
ShareTweetShare

RISMedia Staff

Related Posts

Creative Marketing Ideas to Move Your Listings Faster
Best Practices

Creative Marketing Ideas to Move Your Listings Faster

July 2, 2022
The July Issue of Real Estate Magazine Is Now Live
Agents

The July Issue of Real Estate Magazine Is Now Live

July 1, 2022
First Guaranty Mortgage Corp. Tacks on Massive Layoffs With Bankruptcy Filing
Agents

First Guaranty Mortgage Corp. Tacks on Massive Layoffs With Bankruptcy Filing

July 1, 2022
Pandemic-Fueled, ‘Astonishing’ Cost-Burden Turnaround
Agents

Pandemic-Fueled, ‘Astonishing’ Cost-Burden Turnaround

July 1, 2022
Florida, South Top Inflated Rental Markets
Agents

Florida, South Top Inflated Rental Markets

July 1, 2022
For-Sale Home Supply Grows Faster Than Ever as New Seller Activity Rebounds
Agents

For-Sale Home Supply Grows Faster Than Ever as New Seller Activity Rebounds

July 1, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

Break a Leg: How Acting Techniques Can Enhance Your Pitch

Authenticity, emotion and empathy are all a big part of a successful client presentation, and actors have the answers. Read more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • Creative Marketing Ideas to Move Your Listings Faster
  • The July Issue of Real Estate Magazine Is Now Live
  • First Guaranty Mortgage Corp. Tacks on Massive Layoffs With Bankruptcy Filing

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.