My opinion: I am not worried at all about Zillow starting to break into the investing side of Real Estate. I Would absolutely NOT recommend anyone to accept a cash without consulting a professional like myself to at least run numbers and do a Licensed Certified Market Analysis. I am sure there are going to be some people who see flashing dollar signs and do not do their due diligence, well, shame on them!
That goes for any cash offer, not just ones from Zillow. They are not the first people to use this model to invest in real estate and they will not be the last. For years investors and investing firms have tried to get ahead of the public in order to snag a good deal from an unsuspecting or distressed seller. However, I feel what Zillow is actually doing is allowing their lead sales system to open up the doors for the "other side" of the deal!
Zillow has been selling motivated Buyer leads to agents for years at a premium price, and soon they will be able to do the same with leads for Sellers! I think that this will be their end game and if they make some money off of the investment side of things so be it! It will be up to the Agents whether this is a model they want to participate in.
We continue to market with Zillow and it has connected us with some of our favorite Clients and Friends!
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Here is the article!
Denver homeowners this fall will have another option available to them when it comes time to sell. They can ask Zillow, the online real estate marketplace, to make them a cash offer.
Whether it will be an offer they can’t refuse is another matter. But Zillow said the program is designed to smooth out some of the headaches that come with trying to find a new home while selling the old one.
“Zillow Offers is designed to help address one of the biggest pain points for home sellers – the uncertainty and inconvenience of how and when they can sell their house,” Zillow Brand President Jeremy Wacksman said in a statement.
Zillow Offers is available in Phoenix and Las Vegas and is rolling out in Atlanta. Denver will be the fourth city added.
Within two days of receiving a request from a seller, Zillow will make a no-obligation cash offer or it will say pass. If an offer is made and accepted, Zillow will buy the home, prepare it for sale and then list the property. The timing of the transaction is at the discretion of the seller.
The new program generated controversy among agents when it was announced earlier this year. Zillow has built a strong connection to consumers through its online listings, home valuation tools and market data.
Some agents fear that Zillow wants to cut them out of the equation, not unlike how Uber used technology and convenience to upend the traditional taxi model.
But Zillow emphasizes that agents will remain at the center of its transactions and that it will pay commissions to agents on both sides. Those can run 5 percent to 6 percent of a home’s sale price.
Not every seller will receive an offer, and some, not liking the one they get, may want to test the market using an agent. In those cases, Zillow will direct sellers to “premier” agents at one of three area brokerages it has partnered with.
Link to Full Article
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Denver Colorado Real Estate Professional -Michael Steffen
Michael is a motivated realtor specializing with investors and new home buyers located in the following areas; Denver, Arvada,Aurora and surrounding areas. Michael Steffen uses advanced internet marketing to insure your property gets maximum exposure and holds a high value of ethics in his work to ensure the ideal scenario for everyone! For help with buying or selling a property call 303-981-2750!