With home prices at record highs, what are today’s 20- and 30-year-olds most interested in? Considering that Gen Z and millennials account for 55% of HGTV’s audience, fixer upper properties are a good bet.
There is a fascination with turning tired into trendy and dull into dynamic. In fact, over 68% of millennials said they would be interested in a fixer upper according to a recent survey. The problem is: how can they afford to buy a home and then have the cash to fix it up? It’s hard enough to save up even a minimal down payment.
There is such a loan, and it goes by different names, such as the Fannie Mae Homestyle loan or simply a renovation loan. But the premise is simple.
Andrew Batson, founder of YourWayLoan explains, “We’ll loan you the money to not only buy a home, but we’ll loan you the money to fix it up. All at once. One closing. With one low downpayment of 3% – 5%.”
So instead of say, buying a $200,000 fixer upper and then having to fund a $50,000 remodel, buyers can acquire the $200,000 house and borrow the $50,000 all at once.
The real power is using the financing to help market your listings in a new light.
“Agents will send us their old, tired listings,” explained Batson. He has an advantage because he also owns an architecture firm. “Our in-house architects will put together a rendering of ‘what this house could look like,’ kind of like you see on HGTV. I’ve got this incredible marketing director that runs targeted Facebook ads for the property. We generate dozens of leads for the listing agent and pre-qualify the buyers for a mortgage loan. It’s a win-win deal for everyone. The seller gets incredible exposure that no one else can offer, we generate mortgage leads, and the agent gains new buyers.”
It’s an advantage that helps agents gain listings too. Unless you’re in an uber hot market, selling Grandma’s 1960s era rambler requires more than professional photos and an MLS listing. When a prospective listing agent demonstrates that they can market not just the home as it is today, but for what it can become, it’s a game changer.
In fact, it’s the antithesis to the iBuyer model. Instead of taking a big price hit to sell a dated home, agents leverage their skills as a marketer to net the buyer a much higher price. They can open up the house to a whole new pool of buyers. And trusted local agents with their own network of contractors are the real value add.
Batson reflects, “It’s really a very symbiotic relationship. We’ve got expert loan officers on my team that are well versed in the renovation loan product. And my in-house architects are a real competitive advantage — name another mortgage company with architects on staff. But without local agents that know what will sell in their market and have the listing inventory, my marketing team wouldn’t have a product to advertise.”
Agents may be wondering how they can participate. Batson answers, “We’re growing rapidly, but so far we are lending in Colorado and Florida. North Carolina and California will be available this year, and we hope to expand to a dozen states next year.”
The Your Way Loan team creates a rendering or sketch of potential renovation ideas and then executes a professionally run Facebook marketing campaign to generate leads. While they can’t promise every agent that we can participate, interested agents can learn more and a team member will be in touch shortly.
Andrew Batson runs the multi-state YourWayLoan lending team, a tech-driven, lead generating mortgage lender working with agents in SC, NC, GA, FL, CO, and CA with more states coming soon. Find out how a relationship with his team can help drive your real estate sales to the next level. Loan officers looking for new opportunities can also learn more.