2018 Apr 14th

Zillow getting into the Home Buying and Selling Game

The real estate business is going through a huge change.  It has not hit Hoboken yet, but fear not – it’s coming.  Zillow is capitalized at over $9 billion.  That’s a lot of chedda!  They just announced that they are entering the “iBuyer” game.  You may not know what that is, yet, but you will.  Basically, the home seller will complete an information sheet about the property they wish to sell.  Zillow will price it and make an instant offer.  The entire transaction will be handled electronically (Zillow bought the transaction management software company, DotLoop, which we realtors all use).  Then Zillow will turn around and sell the home on-line.  They already rolled out a test in Orlando and Las Vegas and now they are expanding into other markets.  Zillow claims agents will be involved in the process though it’s not clear how.  What is crystal clear is that Zillow will charge those agents a hefty fee to participate.  Time will tell if this will be successful but I bet it is just a matter of time.  Stay tuned!

  1. JC

    Quick closings and sellers not paying commission (they do pay a transaction fee i think) could make this valuable to sellers. Also, they dont need to deal with repairs since buyer does them. Very interesting.

  2. MS

    How will Zillow’s know the condition of the property? i.e.if it has mold, run down, etc. Will they have field representation? Seems strange they will make an ‘instant’ offer without investigating the property.

  3. JC

    They make the buyer disclose condition. Not sure how they enforce penalties if not truthful. Maybe hold $ in escrow seems reasonable.

  4. Lori

    Zillow is not going to induce top agents to handle transactions for a transaction fee anything less than the usual commission the agent charges. Beware of antitrust issues here, too. Fixing fees is a touchy topic. Why would I work for Zillow when I could potentially make much more on my own deal? The top agents already have the business. The bottom feeders will see this as a plus. Not good for the consumer, in my mind. But, as I said elsewhere, I’ll be long gone before this comes to pass in Hoboken! Will read about it with a Bloody Mary in hand, poolside.

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