'Unfiltered': Tech, brokerage CEO on life after iBuying
Watch the conversation as Lane Hornung of zavvie and 8z explains what agents need to know about “power buying” and innovations in financing to show real value.
NextHome CEO James Dwiggins has emerged as a significant voice on the topics that are shaping the real estate industry: lawsuits, innovation, leadership. But Dwiggins doesn't just answer questions, he asks them of guests on Real Estate Insiders Unfiltered, his podcast with Keith Robinson, NextHome's chief strategic officer.
On this week's episode of Real Estate Insiders Unfiltered, Lane Hornung, CEO and co-founder of alternative financing platform zavvie, talks about the momentum shift from seller-focused, "fix and flip" iBuying to "power buying" (think bridge loans and beyond).
"Power buyers allow the open market to function," Hornung said. "They're just bringing liquidity into the equation and then still allowing the client to get what the market will bear in both the purchase of their property and the sale of their property."
Hornung's advice for agents: Hornung is also CEO and founder of 8z, an independent brokerage in Colorado. He believes the key to success for agents in the post-NAR settlement world is being able to connect clients with innovative financing — not by themselves, but in partnership with "a really good partner on the finance side."
"You know, you can't just open doors anymore," Hornung said. "So as a real estate agent, particularly a buyer's agent, they can say, 'Look, Mr. Client, Mr. and Mrs. Client, I will make you a cash buyer and we'll go buy your house.'"
And it also works on the other side of the transaction: "'Mr. Seller, I will make every buyer that walks through the open house a cash buyer, and we'll close in 14 days if you want.' That's real value," he said.
That's also what Hornung's company, zavvie, offers. And he believes that in a decade, every mortgage company will offer some kind of power buying product.
The views, thoughts and opinions expressed in the Real Estate Insiders podcast belong solely to the podcast creators and guests, and not Real Estate News.