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After debuting a power buyer program for real estate brokerages in February, real estate technology provider zavvie has officially launched a similar service for mortgage lenders.
Zavvie, which says it’s helped real estate brokerages boost their mortgage capture business by 10 to 15 percent, has been working quietly behind the scenes. Having launched a beta test with lenders last fall, Zavvie says it’s already closed 500 transactions and now has power buyer partnerships with 30 mortgage lenders in nine states.
While most of the mortgage lenders zavvie is working with are a subsidiary or joint venture of its real estate brokerage clients, five are “direct-to-mortgage” companies, the company said.
“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 zavvie co-founder and CEO Lane Hornung, in a statement.
Hornung said about one-third of all home sales are cash deals, and that mortgage loan officers are adopting cash offers at a faster pace than real estate agents.
“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,” he said.
The plan is to expand zavvie’s reach in the mortgage industry to 14 states by the end of the year, providing power buyer services including a contingency-free cash offer and buy-before-you-sell bridge loan.
Power buyer Knock announced in January that it would work with local lenders to pair the company’s Home Swap Equity Advance with the purchase mortgage of the borrower’s choice.
“By partnering with lenders, we are making it easier for consumers to get the benefits of leveraging the equity in their current house to buy their dream home without any of the hassles that typically come with buying and selling, including the ability to avoid moving twice and living through repairs and showings,” Knock co-founder and CEO Sean Black said at the time.
Zavvie kicked off the year by announcing $3.65 million in new funding, including $1.5 million in cash and $2.15 million in convertibles, in a round led by existing investors including Second Century Ventures, the National Association of Realtors’ venture capital fund.
Zavvie participated in NAR’s tech accelerator program, REACH, in 2018. With the fresh injection of capital, Second Century Ventures Managing Partner Tyler Thompson joined zavvie’s board of directors.
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Email Matt Carter