Zillow Group to launch brokerage to pair with its homebuying platform
Source: Phoenix Business Journal
Zillow Group announced Wednesday it will launch an in-house brokerage in January to support Zillow Offers, its direct homebuying platform.
Zillow plans to first launch the brokerage, called Zillow Homes, in Phoenix, Tucson and Atlanta and expand it to the 22 other cities where it operates Zillow Offers later, according to an announcement. Those selling homes to Zillow will work with Zillow Homes brokers, who will later list the homes for resale.
The online real estate database company currently has 139 open positions listed on its website, including three in Arizona.
Zillow provides direct mortgage, title and escrow services. The company aims to provide all services related to its Zillow Offers transactions in order to reduce uncertainty and save time. Through Zillow Offers, the company provides instant cash offers for homes on the seller’s timeline, then conducts minor renovations and resells the home.
“We’re excited to add another important link in the Zillow Offers transaction chain to offer our customers greater choice and convenience when considering a move,” Zillow President Jeremy Wacksman said in a statement.
Zillow is also transitioning to collect listing data from Multiple Listing Service (MLS) rather than thousands of different data feeds. All Zillow Offers homes will be listed on MLS.
Zillow Offers launched in 2018 and quickly grew to $1.4 billion in revenue the following year, though it’s not yet profitable. The service — along with those provided by other instant buyers — still isn’t available in Seattle due to the cost and diversity of homes in the city. It’s operating in 24 cities:
- Austin, Texas
- Charlotte, North Carolina
- Colorado Springs, Colorado
- Dallas-Fort Worth
- Fort Collins, Colorado
- Las Vegas
- Los Angeles
- Minneapolis-St. Paul
- Nashville, Tennessee
- Orlando, Florida
- Raleigh, North Carolina
- Riverside, California
- Sacramento, California
- San Antonio
- San Diego
- Tampa, Florida
This deals come on the heels of San Francisco-based Opendoor forging a partnership with Realtor.com to expand its reach to more homebuyers nationwide — starting with Phoenix and Tucson.
Under this new agreement, Opendoor is providing Realtor.com’s users with a fully digital option to sell their home. That means when homeowners visit Realtor.com’s new “seller marketplace” they can request an offer from Opendoor as an alternative to selling their home on the open market.
Meanwhile, Gilbert-based Offerpad is beefing up its relationship with homebuilders to eliminate buyers’ contingencies and better guarantee their home sales.
Under Offerpad’s Homebuilder Alliance program, Offerpad partners with more than 35 of the top homebuilders in the U.S., including Scottsdale-based Meritage Homes Corp. (NYSE: MTH) The purpose of the partnership is to the sale of the homebuilder’s buyer’s existing home, providing assurance that the buyer’s sale of the newly built home is not contingent on the sale of an existing home.
It gives the consumer immediate cash, certainty of sale, and provides them the ability to stay in their home for up to nine months, allowing them to proceed with the purchase of their newly built home, said Kyle Rush, national director for the Homebuilder Alliance at Offerpad.