Zillow is bringing its online homebuying and selling program to Denver sometime this fall, the company announced on Wednesday. Denver will be the fourth market for Zillow Offers — formerly Zillow Instant Offers — since it was launched in April 2018, marking a rapid expansion of the program.
“Zillow Offers is designed to help address one of the biggest pain points for homesellers — the uncertainty and inconvenience of how and when they can sell their house,” said Jeremy Wacksman, the president of the Zillow brand. “With the expansion into our fourth market, we’ll provide a service to Denver-area homesellers that is transparent and gives them more choices.
Zillow Offers in Denver will follow the same model as markets past (Phoenix and Las Vegas, soon to be joined by Atlanta). Homesellers who are in these markets can go to Zillow.com, enter information about their home, and within two business, days receive a free, no-obligation cash offer from Zillow to buy their property, alongside a competitive market analysis (CMA) report prepared by a Zillow Premier Agent, one of the independent real estate agents paying to be a member of the company’s advertising and lead-generation subscription service.
The CMA tells homebuyers what their home might be worth if they decide to list on the open market, instead of taking Zillow’s all-cash offer.
The Seattle-based real estate tech giant’s own research found that 71 percent of sellers are simultaneously buying a home while trying to sell, which it says can add stress and financial complexity, as well as impact the timing.
“Whether they request a no-obligation cash offer from us, or are connected to a local Premier Agent should they decide to sell traditionally, consumers get more control and face less stress thanks to Zillow Offers,” Wacksman added.
Denver will be a first for Zillow when it launches in Denver — a market without major other iBuyer competition. While Knock has plans to launch in the Mile High City by the end of 2019 it’s not there yet, and other competitors like Opendoor, Offerpad and Redfin’s Now service aren’t in Denver.
As it has in other markets, Zillow will work with partner brokerages and agents to buy and resell the homes it purchases. In Denver, those brokerages are: 8z Real Estate, Berkshire Hathaway HomeServices Innovative Real Estate and Re/Max Alliance. Zillow has previously said it negotiates commissions separately with each brokerage.
“Consumers today are looking for more transparency and choice when it comes to selling their home, whether it’s going with a Zillow Offer or selling traditionally,” said Scott Nordby, CEO of Berkshire Hathaway HomeServices Innovative Real Estate. “We are excited to partner with Zillow to help us connect to more Denver-area homesellers — providing them with the service and assistance that best suits them.”
Lane Hornung, the CEO and founder of 8z Real Estate said Zillow Offers is the kind of innovative program that complements its own strength as a local brokerage.
“Consumers today expect more control, convenience and transparency when selling their home,” Hornung said. “8z was created to empower consumers with tools, technology and our local expertise so they can make the decision that works best for their unique circumstances.”
Chad Ochsner, the broker-owner of Re/Max Alliance, also expressed excitement at the chance to partner with Zillow as the company expands its Zillow Offers program into Denver — a program he says is designed to keep real estate professionals at the center of every transaction.
“Every homeseller’s motivation and circumstances are unique, and it’s important to provide them with services tailored to best meet their needs,” Ochsner added.
Zillow has made a couple sales since it began buying and selling in April. The first home was a two-bedroom in Mesa, it bought for $180,000 and sold for $188,000. The home at 8760 West Tuckey Lane in Glendale, was purchased by Zillow for $220,000 and sold for $236,000, a net profit of $16,000.
A spokesperson for Zillow said the company currently has several homes under contract to be sold, but they have yet to be formally closed, so they declined to provide further detail. The spokesperson also said Zillow has currently purchased or is under contract to purchase dozens of homes in both Phoenix and Arizona to date.