Friday, June 16, 2017 / by Joe Corbisiero
Top Real Estate Professional Joe Corbisiero weighs in on one of the controversial topics in the Real Estate Industry right now.
What happened in the real estate industry this week was preceded by a long drum roll, delivered to the beat of massive funding rounds for direct homebuyers, disrupted music and transportation industries, the infiltration of convenience into every aspect of our lives, and the undeniable focus on that precious lead: the homeseller.
The sound of the snare finally broke Monday with a major announcement from real estate’s most powerful consumer brand — Zillow.
With a program called Zillow Instant Offers that positioned the company right next to the transaction, the real estate giant could be seen raising its hands to start a new score.
What is it?
Zillow’s test program called Zillow Instant Offers allows prospective homesellers to receive all-cash offers from a hand-selected group of 15 large private investors along with a side-by-side comparative market analysis (CMA) from a local Zillow Premier Agent.
Zillow says it is responding to a consumer need: homeowners looking for easier ways to sell.
Where is it happening?
Zillow launched a pilot program in two cities — Las Vegas and Orlando, Florida.
Once offers are received from participating investors, the homeowner can choose one of three options:
1. Accept an offer and sell directly to an investor
2. Accept an offer and use an agent to manage and close the transaction
3. Reject the offers and list the property on the MLS with an agent
By selecting an investor offer, a home sale transaction can be completed in as little as a week. The initiative aims to offer a more streamlined and friction-free transaction, managed by Zillow-owned dotloop, and a process that may give the seller more certainty.
What about the money?
Zillow will collect no money from the test.
Who are the investors?
Right now, the only two investors that Zillow has confirmed are OfferPad (a direct competitor with Opendoor) and Invitation Homes.
Who knows where this may lead? Only time will tell