Boulder, Colorado-based software technology company Zavvie is expanding its real estate brokerage and financing services, according to a press release.

The company offers IBuying-style services and customized buying and selling services and so-called “power buying” services, including cash offer and buy-before-you-sell Modern Bridge to the mortgage industry.

The company said that this will help more buyers, including first-time buyers, to pay for homes using cash, which in turn, will help loan officers and real estate agents close more deals. It now has Power Buyer deals in place with 30 mortgage lenders, most of whom are either a subsidiary of or a joint venture with its brokerage clients, though five are direct-to-mortgage companies.

“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 (LinkedIn profile).

Hornung said the adoption of cash officers by loan officers has outpaced real estate agent adoption. He said industry research shows around a third of all home sales come from cash offers. Loan officers normally work with real estate agents who utilise their financial expertise to help buyers understand all their financing options.

By expanding its services to the mortgage industry, Zavvie can grow its market reach while also benefitting brokerages which are experiencing a 10-15% increase in their mortgage capture business by working with Zavvie, according to the company.

“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,” Hornung said.

According to Zavvie research, consumers gain a significant advantage when they are a cash buyer and don’t have to apply for a traditional mortgage with a loan contingency. Buyers who need a mortgage have to make an average of seven offers when buying a home, compared to just 1.1 offers when using cash. This is because cash simplifies the transaction, making the offer more attractive to sellers who value speed and certainty. Cash buyers benefit from removing the risk of loan approval, by shortening the closing period and reducing the likelihood of sales falling through.

Launched in fall 2022, Zavvie recently raised more than $2.0 million U.S. in mezzanine financing (a hybrid of debt and equity financing that gives the lender the right to convert the debt to an equity interest in the company in case of default, placing it between senior debt and equity and in terms of risk).

The company currently operates in nine states and is planning to increase this figure to 14 by the end of this year. According to Zavvie, it now has power buyer partnerships with 30 mortgage lenders and has closed more than 500 transactions to date.

It adds that “The Zavvie Marketplace is a white-labeled tech platform for brokerages that gives agents access to all buying and selling solutions in one place, increasing deal flow while keeping agents at the center of the transaction.”

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