The real estate tech giant will start buying homes and going head-to-head with Opendoor and OfferPad. Zillow also confirmed it will be using agents in its Premier Agents program to sell the homes it purchases
Zillow executive Errol Samuelson announced a major new business initiative for the real estate tech giant: Zillow will expand its Zillow Instant Offers program and begin buying and selling homes with its own money in Phoenix and Las Vegas, putting it in direct competition with iBuyers like Opendoor and OfferPad — the latter of whom Zillow also partners with on Instant Offers.
Zillow Instant Offers, which launched last year in Orlando and Las Vegas initially, lets prospective homesellers visit the Zillow website to receive an offer on their home from iBuyer investors, including companies such as OfferPad, as well as a professional home valuation and comparative market analysis (CMA) from a licensed real estate agent. The home seller can then choose to take the instant offer from the investor and receive all cash for their home, likely at a reduced rate, or list their home on the open market with an agent and potentially get a higher sale price.
Zillow’s new enterprise — offering to buy homes outright and resell them, using handpicked local real estate agents who are already participating in Zillow’s separate Premier Agent program to represent Zillow in both its purchase of homes and its re-sale of them — will launch within weeks, according to Samuelson, Zillow’s Chief Industry Development Officer. The company projects that it will have somewhere between 300 and 1,000 homes in its inventory by the end of 2018, according to an investor presentation released yesterday.
The startup says it was blindsided by Zillow’s decision to begin buying and selling homes directly and has ended their business partnership
Privately-held real estate startup OfferPad has officially ended its partnership with Zillow in response to Zillow’s announcement earlier this month that it will begin buying homes directly from consumers and re-selling them — a move that puts Zillow in direct competition with OfferPad.
OfferPad launched in 2015 with the aim of making homeselling faster and easier by giving prospective sellers a cash offer on their home online within 24 hours — whether they have an agent or not. If a seller accepts the offer, OfferPad then purchases the home, makes improvements and re-lists it for sale.
Agents aren’t that surprised that Zillow is finally financing offers itself, and major competitor Opendoor welcomes Zillow to the party
Zillow made a long-anticipated entrance into real estate transactions on Thursday with the announcement that the mammoth real estate listings site would buy homes through its Instant Offers program and then resell them quickly — all with the help of agents.
Zillow has operated Instant Offers in two test markets, Las Vegas and Orlando, since last year, allowing homesellers to secure investor offers on their homes and then choose whether to accept an instant investor offer or go with a traditional real estate agent. But those offers shown to consumers by Zillow have come from outside investors and iBuyers like OfferPad.
Now, Zillow is fronting the money themselves, and expanding Instant Offers to a new market: Phoenix. The company will buy homes from Instant Offers customers and then resell those homes starting in the Phoenix and Las Vegas markets. Agents who pay fees to Zillow to be part of its Premier Agent program will be tapped to work on both sides of those transactions.
Strip away the glamour of a name listed at the top of the sales charts and you’ll find a path forged with patience, consistency and the sweat of hard work
The sheer work ethic of Michael Jordan, the mindset of a Jedi, the adaptability of a chameleon and the dogged humility of a servant — put it all together with a commitment to real estate, and you just might get a top-producing agent.
That’s coming straight from the horse’s mouth, i.e., a series of leading real estate agents who shared their secrets to success.
The long-term rewards will be greater if you prioritize building a strong referral network over following cold leads
Something funny has been happening around the office, and maybe you’ve noticed it at your office as well. We’ll get a call from a real estate agent who says his or her client is only available to see a listing at a certain time — say, 11:00 a.m the next day.
A few minutes go by, and we get the same call from another agent whose clients also want to see the property at 11:00 a.m., and guess what — they aren’t available at any other time. Maybe you already know where I’m going with this …
Artificial intelligence will create winners and losers in real estate. Which will you be?
When some people hear “artificial intelligence,” their mind jumps to robots so advanced they can eliminate humans and take over the world. Think Skynet in The Terminator or the machines in The Matrix.
Or they envision the loss of countless jobs as human workers are replaced by machines. Neither of those scenarios is likely to occur for real estate agents as a whole: there will be agents for decades to come and AI could make them more successful than ever. The real question is: Will you be one of them?
Buyers pay up to 9.1% above asking on a certain day and up to 5.9% above in a certain month
According to the latest analysis from Attom Data Solutions, May is the best month to sell a home because homeowners, on average, received offers 5.9 percent above asking price — the highest of any month.
June and August were the second and third best months with an average seller premium of 5.8 percent and 4.2 percent, respectively. To no one’s surprise, winter months ranked last, since homeselling and buying activity tends to slow down as temperatures fall.
October and December were the worst months to sell, with homes only selling 1.6 percent above selling price.