| While recent headlines have been inundated with news about Zillow abandoning their iBuyer program due to their Zestimate’s inability to predict future prices, Zillow also announced a game-changing partnership with DownPaymentResource.com last month. The deal will allow them to display how much down payment assistance is available for every listing on their website that qualifies. For savvy agents, Zillow’s new offering represents a major opportunity to capture large amounts of both listing and buyer business.
Lack of a down payment is the number one obstacle blocking first-time buyers from purchasing a home: 37 percent of buyers nationwide report that “not having enough money saved for a down payment” is blocking them from purchasing now.
DownPaymentResource.com aggregates all the down payment assistance programs in the country. It then matches each program to property addresses eligible for that program. Both agents and consumers can access this information directly by visiting the DPR website.
According to site founder and CEO Rob Chrane, the average amount of down payment assistance that users of the site obtained in 2021 was $17,000. Imagine how your buyers who are struggling to save a down payment would feel if you were able to help them purchase now and obtain an extra $17,000 towards the purchase of their next home!
Why Haven’t I Heard of this Before?
Since Chrane’s site first launched in 2010, every time I have mentioned down payment assistance when I speak, the agent and broker response has been the same: “Why haven’t I heard about this before?”
According Chrane, approximately 366,000 agents currently have access to his site’s programs through either their MLS or their company. What makes Zillow’s move such a game-changer is down payment assistance information will now be prominently displayed any time one of the portal website’s 36 million unique monthly visitors checks out a home that qualifies for one of these programs. And Zillow’s massive reach means consumers will soon be asking their agents about down payment assistance programs, how they work and what it takes to access this money.
These programs come in many flavors – including a few run by individual towns and cities – and some can even be layered one on top of the other, but the most prominent in Massachusetts are the ONE Mortgage from the Massachusetts Housing Partnership, MassHousing’s mortgage assistance program and the Federal Home Loan Bank of Boston’s Housing Our Workforce (HOW) and Equity Builder programs.
While it’s easy to see how down payment assistance programs apply to buyers, according to the 2021 NAR Profile of Buyers and Sellers, 51 percent of buyers were living in a property they owned before they purchased their next home. Helping sellers determine whether they are eligible for assistance on their next purchase pretty much guarantees you’ll be the agent who lists their current home. Adding this information to your listing presentations can also be a powerful way to secure seller clients. Even if they expect to sell over asking price with multiple offers, remind them, the more exposure and the more offers they generate, the higher their price will be.
Your Advantage Over Zillow
The primary advantage you have over any portal or algorithm is your ability to meet face-to-face and secure the business. The 2021 NAR Profile of Buyers and Sellers reports that 73 percent of the buyers and 82 percent of the sellers interviewed only one agent – the same one they hired. Consequently, your highest priority in 2022 must be meeting face-to-face with any lead you generate as soon as possible. Remember, half those buyer leads are living in a property they own!
You can also use local down payment assistance programs to convert more leads. Use DownPaymentResource.com to learn about local programs and add them to your marketing campaigns. Many renters struggle with coming up with a down payment and your postcard or ad could convince them to jump into the buyer pool.
Some down payment assistance programs are also available for repeat buyers. When a buyer inquires about a specific property, pull up the down payment information from Zillow and/or the DownPaymentResource.com website if the property is not on the market. Show the buyers how much is available – it’s one of the most powerful ways to make sure that buyer works with you exclusively!
First-time buyer seminars are another good way to generate leads. Have a lender who works with down payment assistance programs speak at your next first-time buyer seminar. Have them illustrate the types of down payment assistance available for first-time buyers in your local area. In many cases, applicants will need to attend a first-time homebuyer class, anyway.
Zillow’s move into the down payment assistance space will be a boon to buyers struggling to save a down payment. With home prices higher than ever, these programs hugely boost affordability and help more people become homeowners. The question is whether you will you seize this opportunity to grow your business.
Bernice Ross is a nationally syndicated columnist, author, trainer and speaker on real estate topics. She can be reached at bernice@realestatecoach.com.
