Ocean City Today
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Zillow changing market by adding instant offer tool

Real Estate Report
By Lauren Bunting | Jul 13, 2017

(July 14, 2017) The real estate industry is carefully watching online giant Zillow, after their introduction of Zillow Instant Offers.

This new feature was launched earlier this year in two test markets — Orlando, Florida and Las Vegas, Nevada, and is a home-selling option for homeowners to promote the sale of their home on the site, and receive offers from qualified investors.

Zillow Instant Offers is a concept Zillow is testing. The model does allow for sellers to connect with a real estate agent who can provide a comparative market analysis (CMA) and real estate expertise, albeit one that has signed up with Zillow to be promoted to their audience. The real estate agent comes into the transaction to help finalize the transaction if the homeowner chooses to sell to an investor.

According to real estate industry news and information provider RISMedia — nearly 87 percent of respondents from a recent survey of real estate professionals say they consider the introduction of Zillow Instant Offers as a shift towards Zillow becoming a real estate brokerage, a strategy that has been anticipated by many since Zillow’s formation in 2006.

However, in a statement to RISMedia, a Zillow spokesperson said, “We have no intention of becoming a brokerage. We have always felt, and will continue to maintain, that agents are a crucial part of the real estate transaction and our goal is to find ways to continue to integrate them in the transaction process, even as the process continues to grow and evolve.”

The National Association of Realtors spoke out previously on the matter.

“As a publicly traded company that has yet to show a profit, Zillow will always be experimenting with ways to generate revenue as it must placate its shareholders. The company was not created to protect the interests of real estate professionals. NAR cannot sponsor or encourage a boycott of Zillow.

“What NAR can do is the same thing we’ve always done in the face of a long line of business models offered to consumers to sell their homes without the use of a Realtor: undertake renewed efforts to remind the public, and to encourage and help members inform their clients and customers, of the value they bring to the real estate marketing and sales transaction, and the problems and risks sellers may encounter in marketing and selling their home without using a Realtor.”

— Lauren Bunting is a licensed

Associate Broker with Bunting

Realty, Inc. in Berlin.

 

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