Zillow will be buying houses for cash with a one click service and flipping them.

https://www.foxbusiness.com/real-estate/zillow-cash-offers-houses-zestimate-tool

Just adding fuel to the fire. I am sure this will end well.

Depending on how they structure it, that might work.

Sell home to corporation that doesn't have a move-in time, no special circumstances, no waiting on the bank to clear.

However,

They will probably want a bigger percentage then they should and it will be far better and cheaper to just sell FtF.

Im selling a home in Asheville NC and it`s not here yet.
bummer

Seems zillo estimates are always crazy high - wanna bet the are more realistic when they actually start buying.

This has been going on with other companies for a long time.  

REITs.

If you are selling a home in Asheville and haven't gotten offers over your asking price or at least near it your real estate agent isn't doing their job. That or it's a dump with a blue tarp for a roof.

There's so much competition that in order to scale house flipping they're cutting everyone else out and doing it themselves. Plus they are a public company so there cost of capital is low.

Best of luck to them.

One of our neighbors sold their house, and the peasant doing the paperwork didn't know the lot number, so guessed, and got it wrong.
According to Zillow, it was my house that was sold. Tried to tell them, but they are not interested. The county saw the error and the land records are correct, all hey have to do is phone, or send an email ... nope, they want me to pay for an official correction by the dumbos that fucked up in the first place.

I wouldn't trust Zillow to be able to tie their own shoe laces.

Have not listed it yet but have gotten two offers already.

Just like property taxes.

I've always thought if the county wants to assess for a certain value, they should have to buy at that value.

They still charge realtor fees buyers and sellers with a Zillow offer,  at least when I looked at it a couple years back.

The National Association of Realtors spent $41 million on lobbying in 2019 alone.  They are very powerful.

They will fight tooth and nail to suppress any organization or system that challenges their monopoly.  The “traditional 6%” is collusion and price fixing.  But they own enough politicians to stay safe.

I would love to see that industry turned on its ear.

Fuck Zillow they were Obama supporters .

Being a licensee and agent, it disgusts me when our dues come up to be part of the MLS system in our area and there is a $99 "political fund donation" portion of the dues you have to go to a detailed list and UNCHECK as far as what you're going to pay at that time, and they still try to guilt trip you into it.

In all reality, the 3% a selling agent typically gets is shit by the time it gets to the agent themselves after paying dues and such. I'm spending nearly $800/month on advertising and dues by the time the dust settles. If it wasn't a necessary evil for what I hope becomes a stepping stone to passive income generation there's no fucking way I'd be paying it.

Our local MLS does that too.

That may be your area.

My area they have averaged 20% low based on actual sales in my neighborhood,

Lazy people going to be lazy. Good thing I own a lot of Zillow. Missed out of carmax a decade ago....

lol they can try.

They all know where this is going.

Zillow and Redfin are going to end to end this bitch.

Buy within 3 days all online. From mortgage to listing, to viewing, to sold/closed

The realtors that will be left will be working for Zillow or Redfin and not collecting the same sort of outrageous checks

Give it 5 years

The goal of the combined powers of big government and big business is wiping out any/all non corporate profit centers, commoditizing that good or service and relying on high volume and a marketplace only accessible by huge corporate entities.

Blackrock Capital did it.  Finally pressured by activists to stop and they did.

Oldest trick in the book.

No difference than the flyers in the mail promising old people 30% over market.

The scary part of this is when this fully opens up the market to foreign buyers.

Chinese and wealthy Russians will be buying houses by the dozen sigh unseen from another country like trading cards.

Not a hell of a lot different than current, but with more convenience I suppose

This in an era of nearly universal demand that exceeds supply?

OpenDoor already does that.  

I've been following this because I do think real estate sales model is ripe for some type of disruption. But I am not all that sold on the one-click property sales idea.

Let's look at OpenDoor's one-click home sales. The say that with them you can sell your home in 3 days instead of 60 days and they will save you money.



Only a 5% fee to OpenDoor plus 1% closing costs, sounds good but there are a few issues.

First, OpenDoor's fee used to be more like 8%-9%. And it is believed they lowered the fee to 5% just to get more people using the platform and they eventually will go back to 8%-9%.The 5% fee isn't actually sustainable for them.

Also when you one-click sell your property you are getting around fair market value. But you are also missing out on the upside of a potential bidding war driving the price way up.

I'm not sure the average one-click seller will be saving that much - or any - money. They may actually be losing out. I don't know that very many people will see the service as providing value to them. Except someone who absolutely must sell their house in 3 days and can't wait two months for it to sell on the market (but I'm not sure there are too many people in that situation).  

All in all I love the idea of something coming along and changing how we do home sales. I want to buy a lot of stock in the company that figures it out. Not so sure this is it though.

I can see the value for high end corporations but not sure if that will hold true for residential home sales. Do you think it will work? I have been debating throwing money into OpenDoor stock for awhile because I like the general concept but I'm concerned there won't be much of a market for it

Good..very good.

I relate home buying to car buying as they are very similar. A 'steward' asks if you want green or blue and they collect a percentage of the sale for their trouble. These are two industries that really don't require a middle man/woman. Tesla almost proved this but were shot down by the automobile dealers association.

Theirmoneytheirrules.  I have no problem with it.

I'm old enough to remember when the fear was the Japanese buying up everything in sight.  Nobody worries about the Japanese taking over anymore.  Somebody has to be sitting on the bubble when it bursts.  Might as well be foreigners.

I hope you're right!

Big down payment depreciating by the day sitting in the bank waiting for my dream home to become reality

I sold a home to OpenDoor a few years ago.  No complaints.