Zillow Buying And Selling Homes, No Realtor Needed

I am not surprised at this news, I knew this was coming for the longest time

Hello everyone, this post is to all realtors, if you have not been following Zillow news, well here it is, they have changed their business model, from selling advertisements to buying and selling homes, and becoming a bank, so what is really going on, Zillow CEO Spencer Rascoffis, is trying to change the way homes are sold and bought, with one simple big button, Instant Offers, and this is been added in many states and is coming to all areas soon.

Zillow Big Instant Offers Button

You will find this button on their website, it is being testing in a few states, Las Vegas, Phoenix, Florida and Los Angeles, and started sometime in May of 2017, more states are been added ever month, I knew many years ago when the Real Estate boards sold our data to all public search engine sites, like Zillow and Redfin and others that this could change the way homes are sold and the way buyers buy homes, so since no one ever said anything, this is happening. Soon this will change the way real estate is done, Zillow is setup to sell your home with instant Offers Button, this means you click the button, fill out the form and they buy your house, no realtor needed.

What about home inspections and disclosures and all the other paper work, Zillow says, they pay for it, and handle everything and it’s all a cash offer to you, in days of signing up.Your home is not being listed on Zillow, they are just buying it from you, and then they fix it up and re list the property on Zillow site, with new button that says, Zillow owned, and new price.

So Zillow FAQ says, under do I need a agent to purchase home, well here what they say. They encourage you to use an agent to review your offer documents, but no one is paying the buyers agent a commission, well they say Realtors well still get some type of commission, not sure if this will happen, but as we know now, the only agent on a listing getting a commission is the Zillow premier agent, not the buyers agent.

Now Zillow tells you to get your agent to help you understand the documents, well as we all know, the public trust Zillow for everything and will just use their sellers team. So for now Zillow is trying to say, this is for the their agents to get more leads, and you must be a premier agent on Zillow to get more leads from instant offers.

Zillow Still Using Listing Agents

When Zillow buys a property from a seller and fixes up the property, it will be re listed on Zillow with a premier agent from Zillow, and the commission is paid by Zillow, not sure yet what the commission base will be, but some are saying might be as low as Redfin. Now on Zillow site, it will say owned by Zillow, which they say now, if property is owned by zillow. 

Zillow Is Becoming a Mortgage Lender

If you have not heard, Zillow buys, Mortgage Lenders of America, in 2018 yes they now have more power to buy and sell homes, their stocks went down when they announced this, but the stocks should go back up. Why did Zillow buy a mortgage lender, to help the buyers in the buying process, Zillow will own many of the properties listed on Zillow and well help the buyers get a loan thru Zillow, and that is how they will control the housing market. This will make buyers use their system more and more, why, well if they lend you the money to buy a house and sell you the house, this is a win, win for Zillow, Now Zillow will soon have many properties on their website own by them, this is how they will get rid of listing agents from a brokerage house, and only use their own premier agent for properties listed on Zillow and owned by Zillow.

Zillow Buying and Flipping Homes

This past year, 2018 Zillow announced that they are now buying properties to flip, yes you heard me right, they are doing this to compete with rival Opendoor, which is a huge business buying and flipping homes, also Zillow is becoming a National Brokerage, and will have full control of every aspect of the Real Estate housing market, they are moving at lightning fast speeds, to stop Redfin and other companies from getting ahead of them, so the race is on,and soon brokerage house, well be a thing of the past and long forgotten.

Also Zillow CEO Spencer Rascoff, says we are not flipping homes, we do not buy distressed properties at 20% or 30 % under market value, he says we are buying homes that people are looking for speed and to get the property closed and move to the next property, or like he says, it is called a fee-based service business, and says Zillow is providing sellers a guaranteed price for their home and closing date. Zillow says, potentially makes offers on  2.75 million homes annually, which equals about half of all top real estate markets

My Thoughts

Well I see this as a big change, Zillow will control all top housing markets soon, and brokerage houses will soon have no business and have to close, now we all know that Zillow gives us leads if we join their premier agent program, and agents already do, so this could be a big win for Realtors also. We will now get more listings and leads right from Zillow. When you join a standard brokerage house, they never gives us Realtors leads as it is now, or very rare, so Zillow will now be the brokerage house to join if you want to be in Real Estate, or if not, then you will have to get your own leads.

Now if Zillow buys all hot market properties and when you search on Zillow and see Owned by Zillow everywhere on almost every property listed, then you will think about, the best brokerage house to work for, we need leads and listings, so if Zillow will give us that now, then it is something to think about

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