Divvy Homes and zavvie Team Up to Offer Innovative Rent-to-Own Buying Solutions to Brokerages and Their Agents

Aspiring home buyers have had to seek out novel solutions if they wanted to get their foot in a door of their very own throughout 2021. Cash offer products, buy-before-you-sell bridge solutions, and other options became increasingly popular as buyers sought to compete for a limited number of homes, helping them write an offer that could win a bidding war.

Today, another buyer solution powered by zavvie, the nation's first real estate brokerage marketplace that connects broker-agents to buyers and sellers, and Divvy Homes, a leading property-technology startup valued at $2 billion, will deliver a more accessible, affordable and innovative rent-to-own buying solution to real estate brokers and their agents.

Divvy Homes uses technology and a human-centric approach to partner with consumers at every step of the home buying process, helping renters transition into homeowners. Buying a home with Divvy begins with a five-minute online application that delivers an approved home-buying budget and the ability to start shopping with a real estate agent.

The Divvy Homes rent-to-own program is currently available across 16 major U.S. metropolitan areas, including Atlanta; Cincinnati; Cleveland; Dallas; Denver; Ft Lauderdale, FL; Houston; Jacksonville; Memphis; Minneapolis; Miami; Orlando; Phoenix; San Antonio, TX; St. Louis and Tampa, FL.

Now part of zavvie's recently expanded brokerage marketing place, Divvy Homes can potentially reach tens of thousands of new real estate agents, turning more of today's renters into tomorrow's homeowners.

"Divvy Homes helps make sure zavvie delivers every option for today and tomorrow's home buyers and sellers — and that a trusted real estate agent remains at the center of every transaction," said Lane Hornung, zavvie co-founder and CEO.

Over the next decade, industry analysts estimate Divvy Homes could help as many as 100,000 families become homeowners. It allows renters to work with a real estate agent and choose the home they want to rent-to-own. Then Divvy purchases the qualifying home, and the renters move in with 1% to 2% of the value paid upfront. A portion of their rent goes toward saving for a down payment. Within three years, these future homeowners may have accumulated as much as 10% toward their down payment, allowing them to buy the home from Divvy.

"The path to homeownership is more challenging today than ever before," said Divvy Homes co-founder and CEO Adena Hefets. "Divvy is leveling the playing field by accelerating one's ability to become a homeowner. We're a new kind of real estate company that is helping people build wealth while living in a home they will soon own."

Divvy Homes application is online, free and won't impact credit scores. Once a customer's income and savings are verified, a Divvy Homes-approved home budget is provided within two business days. Most Divvy Homes customers become mortgage-eligible in fewer than three years. At any point, a Divvy Homes customer can either buy back the home with the money saved or move out and take any savings with them.

"Housing affordability and accessibility offers exciting new opportunities for brokerages and their agents," said Hornung, "Agents who embrace these new buying options can do well by doing good."