Zillow Announces They Are Buying Homes

Yes, you heard that right…Zillow will now be buying and selling homes.  Similar to the process currently in place with online home purchasing sites like Offerpad, Zillow will no longer be only selling advertisements on real estate listings…THEY WILL BE THE BUYER AND THE SELLER.

Zillow will roll out the process of purchasing homes through an expansion of their Instant Offers in Las Vegas and in Phoenix AZ.  Zillow rustled some feathers sometime back with their Instant Offers product which let buyers directly make online offers on homes listed on their real estate platform.  Now, they themselves – Zillow Group, Inc. (NASDAQ:Z) (NASDAQ:ZG) will be purchasing those homes.

Zillow Promises (with their fingers behind their back) To Keep The Agent Part of the Real Estate Transaction

Zillow claims that the new version of Instant Offers keeps real estate agents in the loop.  The trustworthy company claims that program gives real estate agents the “opportunity” for listings by being the conduit from the agent to the seller, whom has listed their property on Instant Offers.

Zillow’s Chief Marketing Officer Jeremy Wacksman said:

“Even in today’s hot market, many sellers are stressed and searching for a more seamless way to sell their homes. They want help, and while most prefer to sell their home on the open market with an agent, some value convenience and time over price. This expansion of Instant Offers, and Zillow’s entrance into the marketplace, will help us better serve both types of consumers as well as provide an opportunity for Premier Agents to connect with sellers. This is expected to be a vibrant line of business for us and for our partners in the real estate industry, while providing homeowners with more choices and information.”

Their press release said:

“When Zillow buys a home, it will make necessary repairs and updates and list the home as quickly as possible. A local agent will represent Zillow in the purchase and sale of each home, enabling agents to earn commissions”

Well.  I guess we will wait and see what Mr. Rascoff says about that next year.

Zillow Taking Over Real Estate

Zillow has been (not so quietly) buying up everyone who is everyone in the real estate industry.  They bought Trulia.  You may remember when they also bought Dot Loop. If you have been around for awhile you may remember a company called ListHub.  They were the dominate force in listing syndication before Zillow took over everything. ListHub and Zillow broke up some time back – which crushed ListHub so listing syndication was not easy any longer. Now Zillow has even forced their hand at local MLSs by not allowing individual listing uploads by agents and franchises, only a direct feed.   Many real estate agents and brokers are tired of spending money with Zillow and are looking for other options.  With Zillow dominating the real estate SEO – its hard for agents and brokers to not have some representation on the behemoth.

Now Zillow is buying and selling homes.

Check Back!  More to be posted on the topic soon…