Zillow iBuyer By the Numbers
Not all blogs are created equal, some are colorful and vibrant like a new restaurant or art gallery and some are a bit more by the numbers and informative. The same could be said about buyers and sellers in our market. To some it is more important to sell fast and to some the bottom dollar is key.
Zillow iBuyer is purchasing homes in the Atlanta and Phoenix market at an alarming rate. They plan to purchase more homes this year than OpenDoor did last year (around 11k). The purpose of this blog is to compare Zillow iBuyer to selling your home exposed to the market. The home in the picture will be the subject of this blog, it is in a suburb of Atlanta.
Amber and I took a client here last weekend. Zillow iBuyer bought this house last month for 290,575, the net to seller after their “average service fee” would be 268,782. This is assuming their average fee of 7.5% which would be 21,793.
If this house were exposed to the market, it would’ve been listed at around 312k, which was market price in that neighborhood for that particular house. Listing fees through an average traditional broker would’ve been around 6% or 18,720. This would net the seller 293,280. The difference in the net to seller in this example is $24,498.
What can we conclude from this?
- It’s ok if Zillow does a deal periodically in your neighborhood, but if it does too many the market in your neighborhood will plummet. They are on the market at 306k currently instead of 312k. Why did it fall? Because Zillow set the market for their own listing by purchasing it low the month before.
- $24,498 is a lot of money, but to some it’s worth forfeiting that cash to get out in 5-60 days(a date of their choosing) instead of dealing with realtors, open houses, showings, and paperwork.
The bottom line is simple: Everyone’s case is different, if you want to get our of your house fast, sell to one of these companies. But do realize if you choose to go through a realtor, they can keep tens of thousands of dollars in your wallet. Either way more competition makes everyone stronger, and Zillow iBuyer is to thank.
Joe Goodwin – Team Goodwin