Review for Zillow Offers

Zillow Offers logo
Reviews for Zillow Offers, a multi-state home direct buyer and a referral network, provides fast home sales for cash typically accompanied by lower-priced home offers and high fees.
Start your review of Zillow Offers

Buying and Selling with Zillow Offers

Zillow Offers is a real estate investor and an agent referral network that operates across highly specific locations. Where available Zillow Offers mainly focuses on homogenous homes. In determining the offer, Zillow Offers discounts from the estimated retail value after home is fully renovated.

Zillow Offers Pricing

Zillow Offers is almost entirely built to sell consumer’s data to Premier Broker and Premier Agent participating agents. Zillow also makes money with a difference between buying and selling homes, although only about 1% of all requests end up in successful Zillow Offer.

With these few actual buying transactions each year, Zillow makes money with value appreciation between what Zillow Offers buys and seller each home for. Sellers can expect to receive 80%-85% of their home value from this type of sale after any fees, cost of the minor repairs, and resale.

Zillow Offers further looks to push consumers to use its own mortgage company.

Listing Services

  • This Service Does Not Represent Sellers

Buyer's Agent Services

  • This Service Does Not Represent Buyers

Zillow Offers Editor's Review:

Last updated: 25 April 2021
First published: 17 February 2019

Skip the hassle, it is only 1% likely that sellers will accept an offer from Zillow Offers. Instead, Zillow will try to convert seller's request into a lead, sold to random Premier Agent.

Zillow Offers is a classic bait-and-switch sales model. First, consumers are "baited" by Zillow’s magical all-in-one home offer opportunity, but out of tens of thousands requests only a few dozen homes are actually sold to Zillow. Instead, Zillow’s business model aggressively converts consumer requests into seller leads. The interesting thing about this scheme is that Zillow is blatantly open about it.

Here are some excerpts from Zillow Offers website:
  • "Initial data from Zillow Offers indicates that of sellers who request a Zillow Offer, the vast majority end up using an agent."
  • "Zillow Group does not guarantee that it will make an offer or that any offer made will provide the best terms available or will result in the greatest net proceeds to you."
  • "If you do not accept our offer, we can refer you to one of our local partner agents who advertises on Zillow."

Zillow Offers suffers from terrible privacy policy. From one side Zillow states to consumers that "we do not share your contact information unless you request to be connected with an agent or a mortgage lender," and on another section directed at brokers it states that "if a seller is not yet working with an agent and they decline Zillow’s offer, Zillow will work to immediately connect them with a local partner brokerage and agent."

Here is how one of these Premier Brokers describes the process:
  • "We receive listing and buyer referrals directly from Zillow's Premier Broker concierge services. These leads have been scrubbed and vetted before they are directly handed off to you."Source: Sonoma County RE/MAX Marketplace, Zillow Premier Broker participant.

Zillow Offers will buy a home at a price that is below market value due to necessary repairs, renovation, and other factors. After Zillow Offers buys the home, it renovates and resells it for a profit to other buyers or companies that rent homes to qualified tenants. With low offer price, comes a convenience of an all-cash closing when selling a home. Zillow Offers claims to provide convenience, speed, and certainty of a fast sale.

Dubbed as an iBuyer, Zillow Offers makes an offer on a house within days, but this offer is highly conditional. Each offer Zillow Offers makes is just an estimate until it makes a home inspection. At the inspection, Zillow Offers will often find reasons to lower its original offer when it finds items that need repair or if it has made a mistake in its original valuation. When the company is unable to make an offer, it simply redirects consumers to a random real estate agent in exchange for an undisclosed fee. Zillow Offers only makes offers for select homes in select regions.

The main disadvantage of using Zillow Offers is high losses in homeowners’ equity, this is beside the fact that the program is designed to collect and sell user data instead of actually buying homes.

As any real estate investor, Zillow Offers is susceptible to losing money in any given transaction. This model is susceptible to a number of risk factors, high operational costs and a continued need for higher-than-average Return on Investment (ROI) with each flip. Zillow Offers is not legally bound to represent consumers, its main legal obligation is to its shareholders.

Zillow Offers’s fast transaction and easy move-out experience typically come at an extremely high price because this model incurs “double” transaction costs during the purchase, holding period, rehab work and final sale that includes real estate agent fees.

Zillow Offers pays real estate agent commissions like any other buyer and seller of real estate, so these costs must be accounted for in the company’s fee structure. Moreover, because most homes in the United States are financed, homeowners own only partial net equity in their home. Banks receive the same amount of the remaining mortgage sum regardless of how any given home is sold, whereas only homeowners’ net equity is lost in transaction fees paid to Zillow Offers.

Typically Zillow Offers uses the following factors when determining the offer: existing condition of the home including repairs needed, time it will take to finish needed repairs, value of a home compared to other comparable homes in the area, real estate commission required to resell, costs associated with maintaining a home during repairs, including taxes, payments, insurance, utilities and homeowner dues.

FAQ for Zillow Offers

What is Zillow Offers?

Zillow Offers is a multi-state home direct buyer that provides fast home sales for cash typically accompanied by lower-priced home offers. Zillow Offers makes money with fees and a difference between buying and selling each home. Almost 98% of all Zillow Offers are declined. Instead, Zillow aims to convert failed sellers' requests into leads, sold to random Premier Agents.

Is Zillow Offers legitimate?

Yes and No. Zillow Offers is a classic bait-and-switch sales model. First, consumers are baited by Zillow's all-in-one home instant offer opportunity, but out of tens of thousands requests only a few dozen homes are actually sold to Zillow.

Instead, Zillow's business model aggressively converts consumer requests into seller leads for brokers. For the few instant home sales actually made, an offer equal to 80% of home value is reasonably expected from this type of sale after fees and cost of the repairs and resale.

What are the alternatives to Zillow Offers?

Zillow Offers directly competes with iBuyers that include HomeVestors, Offerpad, Orchard, RedfinNow, Opendoor, and others.

However, genuinely legitimate alternatives to using any iBuyer are real estate agents who offer savings and help consumers efficiently list homes on the open market, such as flat fee listing agents and agents with competitive listing rates.

What are the pros and cons of Zillow Offers?

Pros: quick cash sale. Unfortunately, this benefit is highly questionable. Consumers systematically decline 98% of all Zillow instant offers.

Cons: there are several main disadvantages to Zillow Offers. First, Zillow Offers has no legal obligation to offer consumers full value on their home. Second, Zillow Offers operates in highly limited markets and is highly selective when buying homes. Third, Zillow steers consumers toward pay-to-play schemes, such as Zillow Flex. Fourth, consumers may lose as much as 20%-30% of their home's equity when selling a home to an iBuyer.

Where does Zillow Offers operate?

Zillow Offers currently operates in select areas across Raleigh, Charlotte, Phoenix, Denver, Atlanta, and Las Vegas.

Contact Zillow Offers:

1301 Second Avenue, Floor 31
Seattle, WA 98101 US
Zillow Offers User Reviews

Zillow Offers User Reviews

Leave your review for Zillow Offers

Please provide honest and constructive feedback about this business. You are solely responsible for the quality of the content.

Companies can never ask HomeOpenly to remove legitimate consumer reviews. All user reviews are protected by the Consumer Review Fairness Act (CRFA) that safeguards people's ability to share their honest opinions about a business.

HomeOpenly team publishes genuine, independent, and unpaid editorial reviews for residential real estate companies that operate in the United States. Each year we highlight services that bring the best overall value to consumers with the highest Editor's Rating. There are no commercial agreements (paid or otherwise) between HomeOpenly and the reviewed business. We encourage our users to post helpful and independent reviews about this business with any sentiment. Please check our Content Guidelines or simply contact us if you have a question.

Thank you!

Your review has been successfully received. Please allow 24 hours for your review to become available.

Feel free to contact us if you need further assistance. At HomeOpenly we aim to make the opportunity of homeownership transparent, affordable and an open experience.