Zillow is now buying condos directly from the Sellers: Here’s what you need to know

Zillow announced last month that Sellers who wish to offload a home without going through the entire sales process can fill out a form online, send in a few photos, and receive an offer. This program hasn’t extended to the Boston condo for sale market yet but, it has been launched in Las VegasAtlantaDenverCharlotte, and Raleigh. In 2019, home sellers in MiamiMinneapolisSaint PaulNashvilleOrlando and Portland will be able to use Zillow Offers to request a no-obligation cash offer from Zillow to buy their home. Zillow will be launching Zillow Offers in each of these five markets throughout the year and expects all five to be active by the fall.

So, What’s the downside?

So what’s the downside? For sellers in a hurry to offload a home, who are not concerned about getting the market price for their home, this could be a great solution. For most people, a house is the biggest investment they make in their lifetime — and they can’t afford to get less than full market value or better. 

Here are more facts you should consider:

Instant Offer Fees are Huge!

While Zillow Offers does not disclose its fees directly on the site, they reportedly range between 6% to 13% of the offer. In my opinion, those are some incredibly huge fees.That means that if a seller accepts an instant offer of $350,000 for their home, they are actually getting $21,000 to $45,500 less than that.

The reviews on instant home offers so far are terrible.

According to an Inman article on the subject, Yelp is actively hiding terrible customer reviews. Customers, in general, so far are not happy with the instant home offer process..

 

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