What Is Happening to the Zillow Offers Program and How Will It Impact the Home Buying Industry?
If you have been involved in any form of real estate, then you are probably familiar with Zillow, the site where real estate agents can post home listings. But did you know that it buys and sells houses too?
This company has been doing it for years through its Zillow Offers Program, where it will buy your home in cash, make renovations, and then sell the property on its own; similar to what we do here at TN Homebuyers.
However, Zillow recently made the announcement that it will be winding down on this program and moving out of the home-selling business altogether. Instead, it plans to focus on its core business that provides a place to look at houses for sale and gives pricing estimates.
So why did this happen and what does it mean for the home buying industry? Here is the inside scoop.
What Went Wrong
According to a Bloomberg report, Zillow is looking to sell about 7,000 houses for $2.8 billion due to an excess amount of inventory. Because of the unpredictable housing market, it purchased too many houses, with many now being listed for less than what was paid. This resulted in a loss of $380 million in the last quarter alone. The company’s CEO, Rich Barton, said in a statement, “We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.”
This means that in the next few months, Zillow will also have to let go of almost 25 percent of its employees (about 2,000 workers).
How This Will Impact the Home Buying Industry
You may be wondering how the ending of the Zillow Offers Program will alter the home buying industry, and this is a valid question.
Zillow is looking to sell its homes on the market to all different buyers, including individuals and investors. This means that it could bring in more options to buyers in this tight market, but not necessarily at a lower price.
Looking to Sell Your Home for Cash?
If you are looking to sell your home for cash, you may be worried because Zillow is now no longer in the industry. But, we are here to tell you that there are other smart options to sell your house fast for cash! At TN Homebuyers, we can help you with the convenience of selling your home as-is. You won’t have to worry about fixing a thing!
You may be skeptical because we are not a national brand. However, we are a better choice because we are locally focused and experts at home selling in the Nashville area. We care about our clients and strive to do everything we can to ensure that you have a positive home-selling experience. Check out our reviews if you’re still unsure!
If you need to sell your house fast, give us a call at 615-299-5525 or fill out the form below. We look forward to speaking with you!