sales funnel

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In the spring of 2019, “Zillow Home Loans” was launched by its parent company Zillow.

You probably know them best for their popular Zestimates, which are quick and dirty home value estimates.

Given their strong engagement with prospective home buyers and existing homeowners, they eventually decided to launch their own mortgage division.

The goal was to become “more of an end-to-end provider for housing-related services” like the many other companies out there trying to do it all.

For you as the customer, it’s yet another mortgage lender to consider when seeking financing. Read on to learn more about them.

Zillow Home Loans Fast Facts

  • Direct-to-consumer mortgage lender
  • Offers home purchase and refinance loans
  • Founded in 2019, headquartered in Overland Park, Kansas
  • Parent company is publicly-traded Zillow Group
  • Licensed to do business in 49 states and the District of Columbia
  • Funded about $1.5 billion in home loans last year
  • Most active in California, Florida, Georgia, and Texas

Zillow Home Loans, LLC is a subsidiary of Zillow Group (NYSE:Z).

The company was officially launched in April 2019 after acquiring Mortgage Lenders of America in the fourth quarter of 2018.

This gave them a quick in to the mortgage business, instead of having to start from the ground up.

They continue to operate out of Mortgage Lenders of America’s former headquarters in Overland Park, Kansas. And also have offices in Irvine, CA and Seattle, WA.

Mortgage Lenders of America was founded in the year 2000 and had approximately 300 employees when Zillow bought them out.

It’s unclear how many remain and what the company’s workforce looks like now. But per the NMLS, they have about 230 licensed mortgage loan originators (MLOs) on staff today.

The original plan was to streamline the home buying process for consumers who used their iBuying service known as Zillow Offers.

But that division was shuttered in November 2021 because they couldn’t accurately forecast future home prices.

They also operated a title insurance and settlement division called Zillow Closing Services, which was also shut down.

Despite this, they pivoted into a full-service mortgage lender that now offers both home purchase loans and refinances to consumers in 49 states and D.C. They are not licensed in New York state.

Last year, Zillow Home Loans funded roughly $1.5 billion in home loans, with a near-50/50 split between purchases and mortgage refinances.

They are most active in the state of California, along with Florida, Georgia, Texas, and Washington.

How to Apply with Zillow

To get started, you can visit their website and click on “Purchase a home” or “Refinance my home.”

The online forms appear to be a sales funnel that require your contact information at the end, so calling might be faster.

To skip the form, you can call the phone number listed to speak with one of their loan officers one-on-on.

Assuming you like what you hear and are ready to proceed, they say a pre-qual takes as little as 3 minutes online and won’t impact your credit score.

What’s nice is if you have an existing Zillow account, you don’t need to sign up a second time.

You can also generate a verified pre-approval letter if you complete a hard credit check and submit supporting documents.

Like many other lenders, they offer a digital mortgage application that allows you complete much of the process electronically.

This includes the application itself, linking bank accounts, uploading documents securely, and eSigning disclosures.

At the same time, they have a human lending team consisting of loan officers and loan processors that can guide you throughout the process.

Once your loan is submitted, you can visit the Dashboard to check on loan status, satisfying outstanding conditions, or message your loan officer 24/7.

Loan Programs Offered

  • Home purchase loans
  • Refinance loans: Rate and term, cash out, streamline
  • Conforming loans backed by Fannie/Freddie
  • FHA loans
  • VA loans
  • Jumbo loans
  • 1% down mortgages
  • Fixed-rate and adjustable-rate options available

Zillow Home Loans offers a wide range of loan options to satisfy most home buyers and existing homeowners.

This includes both purchase loans and refinance loans, including rate and term refis, cash out refis, and streamline refis.

You can get a conforming loan backed by Fannie Mae or Freddie Mac, or a jumbo loan that exceeds the conforming loan limits.

They offer both FHA loans and VA loans, but not offer USDA loans at this time.

However, you can get a 1% down mortgage in select areas, where they provide a grant for 2% of the purchase price.

Both fixed-rate and adjustable-rate options are available, including the popular 30-year fixed, 20-year fixed, 15-year fixed, and 7/6 ARM.

Zillow Home Loans provides financing on single family homes, townhomes, and condominiums, including vacation homes and investment properties.

They do not lend on mobile or manufactured homes, investment property condominiums, construction/land, or co-ops.

Zillow Home Loans Rates and Fees

Unfortunately, Zillow Home Loans does not list their daily mortgage rates online, nor do they have a list of lender fees readily available.

As a result, it’s unclear how competitive they are compared to other banks, lenders, credit unions, mortgage brokers, and so on.

When you do speak with a loan officer, be sure to inquire about both the interest rate and any lender fees charged, such as an application fee or loan origination fee.

While you won’t see rates on their website, you might see them if you compare rates on the Zillow Mortgage Marketplace, which also includes third-party lenders.

Either way, be sure to gather quotes from multiple lenders to ensure you don’t miss out on a better offer.

If you have other mortgage rate quotes in hand, you might also be able to better negotiate with Zillow.

My guess is their pricing is competitive with other online lenders, and perhaps cheaper than brick-and-mortar banks. But don’t make assumptions, get quotes.

Zillow Home Loans Reviews

On the Zillow website (yes, their parent company), they have a 4.82/5-star rating from about 8,000 customer reviews. That is an excellent score, especially given the very large sample size.

You can browse the many reviews there to see what past customers thought of the interest rates and closing costs. And whether they closed on time if it was a home purchase loan.

Over at LendingTree, they’ve got another solid 4.5/5 rating from more than 950 reviews, along with a 94% recommended score.

At Bankrate, they have a 4.8-star rating from nearly 100 reviews, and a 3.8/5 on Consumer Affairs from about 120 reviews.

They’ve got a better 4.8/5 rating on BestCompany and a lower 3.7/5 over at Trustpilot.

In addition, they have a 3.6/5 rating at their Overland Park headquarters from 117 Google reviews. So there is no shortage of reviews to read.

The company also has an ‘A+’ rating on the Better Business Bureau (BBB) website and a 3.53/5-star rating from about 32 customer reviews.

To sum things up, Zillow Home Loans offers the latest technology, has thousands of excellent reviews, and might even be able to get you to the closing table faster than other lenders.

They noted that the average lender took 43 days to close a home purchase loan between March 2023 – May 2023, per an ICE Mortgage Technology survey.

Meanwhile, their average closing time was just 31 days, 12 days or 28% faster than the industry average.

They also say they offer best-in-class service and total transparency, along with local market expertise.

The only question mark is pricing, as they don’t publicize their rates or fees. But if you find them to be competitive relative to other options, they could be a worthy consideration.

Zillow Home Loans Pros and Cons

The Good

  • Can apply for a home loan online
  • Offer a digital mortgage application
  • Close loans 12 days faster than the average lender
  • Lots of loan programs to choose from including 1% down option
  • Thousands of excellent customer reviews
  • A+ BBB rating
  • Free mortgage calculators and online guides

The Maybe Not

  • No branch locations
  • Do not offer USDA loans
  • Not licensed in the state of New York
  • Do not list rates or fees online

Source: thetruthaboutmortgage.com

Apache is functioning normally

Recruitment is a crucial determinant of growth and success for real estate brokerages. Like your customer, the recruitment process can be visualized as a sales funnel, where potential recruits enter at the top, and the best-suited agents emerge at the bottom as ideal members of your team or brokerage. Understanding and optimizing each stage of this funnel is critical to streamline recruitment and attract top-tier talent. With that in mind, let’s break down a successful real estate recruitment funnel and how to optimize each stage:

1. Awareness

At this stage, potential recruits become aware of your brokerage and what it stands for. Think of this as your core brand narrative. Would an agent from the outside be impressed?

Optimization Tips:

  • Brand presence: Ensure your brokerage has a robust online presence, including an updated website and active social media profiles.
  • Content marketing: Establish yourself as a thought leader. Share insightful articles, market analyses, and success stories to position your brokerage as an industry thought leader.

2. Interest

Once aware, agents begin to show interest in what your brokerage offers. They may sign up for newsletters, follow you on social platforms, or attend webinars.

Optimization Tips:

  • Engaging content: Regularly post relevant content that addresses common questions or challenges agents face. Turn your brokerage into a solution.
  • Webinars and workshops: Organize events that showcase your brokerage’s expertise and the benefits of joining your team. Highlight subjects that are not inherently a sales pitch but naturally put your team in the best possible light.

3. Consideration

At this point, agents are actively considering joining your brokerage. They might reach out with queries, ask for meetings, or seek feedback from current agents.

Optimization Tips:

  • Testimonials: Share success stories and testimonials from your current agents. Real-world experiences can be the compelling piece of content you can share.
  • Transparent communication: Be clear about commission structures, growth opportunities, and your support to your agents. A lack of communication can make someone feel they made the wrong decision. 

4. Intent

Agents are on the verge of making a decision. They’ve likely narrowed down their options and are comparing the benefits of various brokerages.

Optimization Tips:

  • Personalized outreach: Always use personalized communication to address any remaining concerns or questions they might have.
  • Showcase Technology: If your brokerage uses advanced tools and technologies that can simplify their workflow, highlight them without overwhelming them.

5. Decision

The crucial stage is where agents decide to join your brokerage. They’re convinced that your brokerage aligns with their goals and aspirations. The first 90 days are critical. 

Optimization Tips:

  • Smooth onboarding: Ensure the onboarding process is seamless. From paperwork to training, every step should be organized and efficient.
  • Welcoming environment: Create a welcoming atmosphere, introducing new agents to the team and integrating them into your brokerage culture.

6. Retention

While technically outside the recruitment funnel, retaining agents is as essential as recruiting them. It’s about keeping them engaged and satisfied.

Optimization Tips:

  • Continuous training: Offer regular training sessions and development programs.
  • Feedback loop: Encourage agents to share feedback and act upon constructive suggestions.

Conclusion

A successful real estate recruitment funnel is more than just attracting potential agents; it’s about guiding them through a journey from awareness to decision, ensuring they feel valued and informed at every stage. By understanding the anatomy of this funnel and optimizing each step, brokerages can ensure they attract and retain the industry’s best talent, setting the stage for sustained growth and success.

Jim Turner is CEO of Brokerkit, a growth platform for brokers.

Source: housingwire.com

Apache is functioning normally

When we contemplate the potential of AI and Web3 technologies in real estate, it goes beyond simply revolutionizing how consumers search for homes and take ownership of assets. The true power lies in how these advancements can alleviate the intricate processes involved in assisting real estate agents and brokers in efficiently guiding consumers through successful transactions. Let’s face it, the ticket price of a house is often too steep for the majority of consumers to navigate on their own with the click of a button. The stakes in real estate are higher, and the cost of making a mistake is substantial. 

Over the past two decades, the real estate transaction process has become increasingly complex, placing even greater demands on real estate agents. While we’ve witnessed the launch of numerous innovative proptech companies, many of them address the top of the sales funnel, such as search, lead generation and financing. Technology applications within the residential real estate space are still burdened with unnecessary friction, preventing the average real estate agent from fully embracing these tools. The technologies that truly succeed are the ones that prioritize saving agents time and driving their business forward and so far there haven’t been many. 

Journey through web eras

Let’s take a retrospective journey through the different web eras and their impact on real estate. During the “Web1” era, platforms like realtor.com were game-changers, as they propelled the industry into the digital realm, providing both consumers and brokers with unparalleled access to property listings. This momentous shift dismantled the barriers that once confined inventory to cumbersome books where practitioners were no longer at the mercy of brokers who held real estate data hostage for their own advantage.

When I look back through my agent lens spanning the last two decades, the real watershed moment for me occurred in the Web2 era with the introduction of Docusign and electronic signatures. Why was it such a game changer? It was nothing short of a time-saving miracle. It significantly streamlined transactions, slashing hours of wasted drive time chauffeuring documents in between soccer games and dinners, creating competitive advantage by shortening contract periods and empowering agents to conduct business across borders in minutes versus days.

While Zillow and its “Zestimate” brought undeniable benefits to consumers, it also added a considerable workload to the already-demanding agent transaction and marketing cycles.

The era of AI

Now, enter the era of AI, which holds the promise of delivering the next breakthrough akin to the impact of Docusign. While I may not possess the ability to predict the exact form of this “killer app,” I am resolute in my belief that AI is the technology capable of delivering it. Based on my brief interactions, the potential applications of AI across the agent journey are astounding.

From prospecting and day-to-day communications to marketing projects, client management, handling diverse personalities, and even navigating the complexities of escrow–the possibilities seem limitless. AI possesses the transformative ability to automate and optimize these mundane tasks, truly liberating agents to concentrate on what genuinely matters: cultivating profound relationships and delivering unparalleled service. 

Contrary to popular belief, the evolution of technology within the residential real estate industry has not diminished the need for real estate agents; if anything, it has magnified it. While technology has undoubtedly reshaped certain aspects of the industry, it has also shed light on the irreplaceable value of skilled agents who possess the finesse to navigate the complexities and intricacies of real estate transactions. In a world where algorithms and digital tools can only take us so far, it is the human touch, experience, and nuanced understanding that agents bring to the table that are truly irreplaceable.

Tech will not render real estate agents obsolete

Let’s dismiss the misguided notion that technology will render agents obsolete. The numbers themselves bear witness to the growing demand for their services. According to a 2001 NAR survey, only 69% of buyers used the services of a real estate agent. Fast forward to 2021, and that figure has skyrocketed to nearly 90%. This data reinforces my earlier argument that the process of buying and selling a home has become increasingly complex, regardless of the technology deployed in a given market.

The statistics speak volumes, showcasing the enduring need for agents who possess the skills and expertise to navigate this ever-evolving real estate landscape. In an era marked by complexity and rapid technological advancements, it is clear that the guidance and experience of agents are more essential than ever before. 

While the precise manifestation of its transformative force remains uncertain, one thing is clear: AI will catalyze the next wave of innovation in our industry. Let’s dive into its vast potential, leveraging it to enhance our efficiency, productivity, and overall success. The future is within reach, and AI serves as the guiding light leading us toward a new era of real estate brilliance.

Christine Choi, also known as the ‘Real Estate Web3 Technologist,’ is a dynamic industry leader with over two decades of deep domain experience in the residential real estate industry.

Source: housingwire.com

Apache is functioning normally

The Zillow app on a smartphone arranged in Germantown, New York, US, on Tuesday, July 25, 2023. Zillow Group Inc. is scheduled to release earnings figures on August 2.

Gabby Jones/Bloomberg

Zillow Group Inc. shares slid after the company’s revenue forecast missed estimates, with an anemic U.S. housing market weighing on expected results.

The company, whose core business is helping real estate agents connect with homebuyers, said it’s projecting third-quarter revenue of $458 million to $486 million. That compares with an average analyst estimate of $488 million in data compiled by Bloomberg. 

The shares fell as much as 7.6% in late trading. They were down 2.1% to $51.91 at 4:46 p.m. New York time.  

The disappointing forecast came on a day in which the company reported second-quarter earnings that beat analyst estimates. 

Zillow’s “residential” business segment generated $380 million in revenue in the quarter, down just 3% from the same period of 2022, when the housing market was still blazing. That compares with a 22% decline in industry transaction volumes, according to the statement.

The company’s websites and apps remained popular despite slower home sales, attracting 226 million unique users on the average month in the second quarter. Zillow said investments to its sales funnel have helped it do a better job connecting homebuyers to real estate agents.

“Zillow outperformed the broader industry for the fourth consecutive quarter as we navigate a tough real estate market,” Chief Executive Officer Rich Barton said in the statement. “I’m pleased with our steady progress on improving and integrating our customer and partner experiences, especially in touring, financing and renting.”

Source: nationalmortgagenews.com

How A Cushy Job Can Be Your Ticket To Financial Freedom

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Studeo’s Nir Betan Talks About the Strategic Storytelling Advantage

A discussion with Studeo Co-founder Nir Betan about the need for agencies to differentiate in order to serve clients.

The post Studeo’s Nir Betan Talks About the Strategic Storytelling Advantage appeared first on RealtyBizNews: Real Estate Marketing & Beyond.