Zillow has just launched a pilot program in two cities — Las Vegas and Orlando, Florida — called “Zillow Instant Offers,” with the promise that a home sale transaction can be completed in as little as a week. The new Zillow product allows prospective home sellers to receive all-cash offers from a hand-selected group of 15 large private investors along with a side-by-side comparative market analysis from a local Zillow Premier Agent. Home sellers who accept one of the offers are encouraged by Zillow to use an agent in the process, but they are not required to do so. Once offers are received from participating investors, the homeowner can choose one of three options: (1) accept an offer and sell directly to an investor, (2) accept an offer and use an agent to manage and close the transaction, or (3) reject the offers and list the property on the MLS with an agent. The initiative promises a more streamlined and friction-free transaction, managed by Zillow-owned dotloop, and a process that may give the seller more certainty. Even though it is a two-market test, and Zillow will collect no money from the test, the move may jolt some in the real estate industry who are suspicious of Zillow’s every move.
