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Opendoor and Zillow, once rivals turned allies, announced on Wednesday they were expanding their home sales partnership into three more Sun Belt markets.
The firms said they would expand into Houston, Phoenix and Dallas. The expansion follows the group’s February announcement that they would offer their joint service in Atlanta and Raleigh.
Customers who start working with a Zillow agent can compare a cash offer from Opendoor alongside a fair market value estimate from a Zillow Premier Agent. They can then work with the agent to list the home or accept the Opendoor offer.
“Our partnership with Zillow provides customers with clear options,” said Brian Tolkin, vice president of product at Opendoor. “If you’re on Zillow’s apps (or sites), select your property and then receive and compare offers. From there, you choose which selling option works best: To receive a cash offer from Opendoor or sell on the open market with a Zillow Premier Agent partner.”
Both companies are working to trim recent losses after a tough 2022.
Zillow reported losing $101 million last year. That was actually down significantly from 2021 when the company reported losing $528 million.
Opendoor, meanwhile, saw its losses more than double from 2021 to 2022.
Whereas Zillow backed out of the iBuying business in late 2021, Opendoor forged ahead and bought thousands of homes as the market was nearing a peak.
Opendoor lost an average of $28,000 per home it sold in the fourth quarter of last year. That’s a stark reversal from the $16,000 in profit it made on average from each home sale in the final three months of 2021.
Opendoor reported a net loss of $1.4 billion in 2022, more than double the $662 million loss the company suffered for all of 2021.
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