A dozen years ago, tech titans Rich Barton, Expedia CEO, and Lloyd Frink, exec with both Expedia and Microsoft, launched a little website called Zillow.com. The site and the brand have become synonymous with real estate searches—listings and a couple of years later, rentals. The Seattle-based company, Zillow (NASDAQ:Z)—now known as Zillow Group (NASDAQ:ZG) with more than 2,100 employees and a market value approaching $4 billion—is now buying homes direct from sellers.
Called Zillow Offers, the program was first tested in Las Vegas, Atlanta and Phoenix. In October Zillow Offers opened in Denver. Sellers complete a questionnaire about their property online and within 48 hours receive an offer from Zillow. The seller can choose not to sell if they don’t like the offer amount. If the seller does accept the offer, the closing window is short and the payout is in cash.
Cash and quick sale programs aren’t new.
Real estate agent Ken D'Angelo founded HomeVestors of America in 1989 and began franchising in 1996. This past August, HomeVestors of America, Inc., a privately owned U.S. real estate company, sold its 1,000th franchise under the name We Buy Ugly Houses (Businesswire.com.) Offerpad, another direct home buyer, was founded in 2015 in Gilbert, AZ and is a private independent company. Homie, a private company founded in 2015 in Salt Lake City, Utah, is one of Offerpad's top rivals. And since 2014, Opendoor has served 20,000 customers, moving into the metro Denver market in September 2018.
So with all the options to sell quickly and sell for cash, why would a homeowner sell using a traditional Realtor? For homeowners that simply want to sell their home extremely quickly and are satisfied receiving less money for their home than they would in a more traditional open market, these service providers can be an option. For those homeowners looking to maximize their price and build their own wealth, a seasoned Realtor with market knowledge and marketing prowess provided the homeowner the best value.
