Zillow’s real estate service model is growing even larger, with the company’s recent announcement that Zillow Offers will begin making cash offers in in 23 markets across the U.S. in hopes of turning the home selling experience into a one-click process.
Perspective sellers can can submit a questionnaire and photos of their homes, and will receive an initial cash offer from Zillow within several days. With the new Zestimate cash offer feature, eligible homeowners could, in theory, close a sale without going through a formal listing.
“(It’s about) making the real estate transaction experience more seamless, more easy, more integrated.”COO Jeremy Wacksman told CNN Business. “Our goal is to make market value offers and get the Zestimate exactly right for what your home is worth. And then we take on the selling process if you don’t want to do all that work yourself.”
The Zestimate itself comes following a Zillow home inspection, leading to an adjusted final offer and the homeowner’s choice of a closing date. Per CNN Money, Wacksman says Zillow has enough data on the home and others like it that it feels confident making the Zestimate its initial cash offer. The cost for a one-click virtual home sale? Zillow charges sellers an average fee of about 7.5 percent.
Zillow Offers is not without it’s critics, with agents and brokers questioning Zestimate accuracy. Wacksman says Zillow stands behind its pricing algorithm and told CNN Money that homeowners who declined Zillow’s cash offer saw a less than 1 percent difference between their Zillow Offer and their ultimate sale price.
Zillow Offers is currently available in Souther California markets including Los Angeles and San Diego.