Yesterday, Zillow announced a partnership with homebuilder with D.R. Horton to allow homebuyers to sell their current home through Zillow's iBuying program, Zillow Offers.
Imagine you've just closed on a new home from D.H. Horton, and you're ready to move in. But your current house is still for sale, and you can't carry two mortgages much longer. What do you do?
The new program allows you to sell your current house to Zillow, maybe not at the price you want, but it takes the burden of two mortgages off your back.
The program's goal is to make the transition from your old house to your new home as seamless and stress-free as possible.
- Sellers selling through Zillow Offers receive an extended closing timeline of up to eight months and flexibility to modify the closing date to align both transactions better.
- Using Zillow Offers, sellers can avoid the hassle of prepping their home for sale and hosting open houses or showings.
- In addition to the streamlined process available from Zillow Offers, D.R. Horton homebuyers who sell their home through Zillow Offers may also be eligible to receive cash credits at closing and free local moving services to make the process even easier.
This partnership is another step for Zillow in its attempt to build the first end-to-end digital real estate transaction experience. Their primary competitors in iBuying are Redfin and Opendoor.
What is Zillow Offers?
Zillow Offers is a program where sellers can sell their house directly to Zillow.
Sellers can skip prepping their home for showings and open houses, get a flexible closing date, and an advisor to walk them through the process.
How it works:
- Homeowners complete a questionnaire on the Zillow site and receive an initial offer within 48 hours and a final one after an inspection.
- Zillow charges a service fee that amounts to 7% of the purchase price on average but ranges depending on what repairs it needs to make and other factors.
- If the seller accepts, Zillow closes the transaction within 90 days at a date of the seller's choosing and then tries to resell it soon after.
Stock performance YTD:
|D.R. Horton ($DHI)||30.0%|
|S&P 500 ($SPY)||2.0%|