The need for a seamless, less stressful home buying process is becoming more realistic thanks to Zillow, with the expansion of their pilot program, cleverly titled “Instant Offer.” This feature will allow customers to purchase a new home with the click of a button. Many homebuyers value convenience and time over price, and Instant Offer will better serve consumers.
The process is pretty straightforward; Zillow would make an offer to home sellers, purchase the house if the offer is accepted, make any necessary repairs or upgrades, then list the house on their site as quickly as possible – otherwise known as flipping a house. This will remove the middleman and allow home buyers to purchase a home without any negotiations or renovations to worry about.
The act of flipping a house can be very advantageous and it makes sense why Zillow decided to follow this new strategy. Zillow CEO Spencer Rascoff noted that “in 2018 and beyond…consumers expect a fully seamless and nearly instantaneous sale of their home.” While flipping homes tends to be more of a smaller, mom and pop-type business, Zillow has an advantage. Zillow understands the home buyers and sellers across America and brings abundant information to the table when it comes to the home buying process. They offer homeowners more choices and information where they would have previously been limited.
While this seems to be purely technology-based, Zillow recognizes that it lacks the human interaction needed to close a sale, so they are doing in a way that is agent friendly. Zillow will bring in a local agent to represent the company in the final purchase and sale, thus, still enabling agents to earn a commission. The program also aims to help agents find sellers that are motivated to quickly sell their homes. The sellers that allow their homes to list with the Instant Offer program will receive an investor offer, in addition to a Premier Agent’s analysis of the home’s value on the open market. This process is intended to ensure complete transparency and convenience for the sellers.
Zillow has already rolled out this program in Las Vegas and Orlando, and will now be bringing it to Phoenix this spring. On-demand real estate jumped from 1% to 3% in Phoenix, so it seems promising that Zillow’s Instant Offer program will be a successful endeavor in this area. In our ever-growing, on-demand society, it’s not surprising that larger corporations like Zillow would take advantage of stressful, time-consuming endeavors and make it simpler for our instantaneous whims to be fulfilled.