Zavvie has announced it is expanding its Power Buying services, including Cash Offer and Buy-before-you-sell Modern Bridge, to the mortgage industry. With the expansion, zavvie aims to help loan officers and real estate agents close more deals.
“The mortgage marketplace today is ripe for innovation and solutions that can help loan officers make more deals happen for their clients and real estate agent partners,” said Lane Hornung, co-founder and CEO of zavvie.
Zavvie has Power Buyer partnerships with 30 mortgage lenders, the company said. Most lenders zavvie is working with today are either a subsidiary of or a joint venture with its brokerage clients. However, zavvie is not limiting its expansion into the mortgage business to brokerage-affiliated lenders: five of its Power Buyer partners are direct-to-mortgage companies.
Following a successful beta launch last fall and a recent raise of over $2 million in a VC mezzanine round, zavvie’s reach in the mortgage industry now extends to nine new states, with plans to cover 14 states by the end of 2023. The program has closed over 500 transactions since the pilot program began.
“Lenders are attracted immediately to zavvie’s Power Buyer program because historically, cash offers are over four times more likely to be accepted than financed offers, and they close faster, making sellers and their agents happier,” said Hornung.
Hornung adds that loan officers act as the “quarterback” for the financial side of the transaction, typically working in partnership with real estate agents and their buyers, while real estate agents rarely want to be the financial expert, leaving that to an experienced loan officer to help buyers understand all their financing options.
According to zavvie research, consumers gain a significant advantage when they become a cash buyer with no contingencies versus applying for a traditional mortgage with a loan contingency. Historically, zavvie notes that mortgage-backed buyers had to make an average of 7 offers when buying a home, compared to just 1.1 offers when using cash.
Zavvie’s nationwide footprint now covers 47 states, serving over 75,000 agents using its platform and potentially reaching more than 700,000 through partnership integrations.
For more information, visit https://zavvie.com/.
