All Forum Posts by: Account Closed

@Patrick Jackson

Thanks for the input. 

So was Zillow actually relying on the active investors it had qualified to figure out the real world rehab numbers & ARV and thus come up with the "instant offer" more than their algorithm?

Basically get say 4-5 real world quotes and pick one or average them and maybe use that intel to teach their algorithm so they could eventually drop the investors off the program?

@Bevla Reeves

Interesting to hear about the shoddy rehabs...in the Bloomberg story on a Zillow flip that they bought for $335,300.00, the rehab budget was $8,000.00 over 10 days and consisted of:

• Changing light bulbs
• Refitting electrical outlets
• Grooming the succulents
• Replacing the fridge and microwave
• Repairing a leaky toilet
• Repainting the pool and deck
• Other basic cosmetic fixes

The outdated master bathroom and a purple accent wall in the living room were left as is.

 @Joe Splitrock Here are the specs and timelines on that first deal that I had posted a couple comments up the thread.

@Joe Splitrock

Assuming it launched early 2017, if it took them almost a year and a half to get their first deal at 6630 Nash Way in Chandler, AZ, they must have been making a lot of low ball offers lol!

Maybe they wised up and that is why they are now offering close to retail with a really thin margin to actually get some deals in the door.

@Mandi Martinez

"Asking for a friend"......I burst out laughing. Thanks for keeping some sense of humor about the whole thing. I pray for you that it all works out. 

@Account Closed

True that.... this is wholesaling on another level especially with the Silicon Valley VC funds.

Not all hope is lost for mom and pop though since their criteria is pretty stringent to certain markets, a specific type of property and a light rehab.... appx $7,500.00 +/- it seems from the examples I have seen so far from Zillow where they have put the rehab numbers out.

Whatever does not fit the Zillow funnel and especially properties needing heavy rehabs will still be out there for mom and pop operations.....your typical distressed house needing more than paint and carpet essentially.

@Julie O.

BTW, Opendoor is competing with Zillow in the Denver, CO market. 

Good ol' Capitalism.

You could try to get an offer from them as well and see how they compare to Zillow and let us know if you wouldn't mind sharing that if you do.

Offerpad and Redfin are not in the Colorado market....yet.

@Julie O.

Thanks for the input. 

So basically they offer you a gross amount then charge you back for the transaction closing costs, the rehab and the 6%-9% fee (Zillow Service Fee) to come up with the net to you.

In all this, did you feel like they made it clear to you that they will take care of the entire transaction at no out of pocket cost to you? Granted they are taking their anticipated costs out of your proceeds but is there an advantage in that you do not have to dig in to your pocket to pay for anything for the transaction to happen if you accept the offer?

Apparently someone had started a thread on this 9 months ago that I did not see in my search results before I started mine.

Zillow had just bought their very first house in Chandler Arizona, rehabbed it, and it was still listed for sale after at the time the thread was started.

There was a story on Geekwire about it that did not have all the nuts and bolts about how the new program worked and did not mention the 6%-9% fee to the homeowner so people were wondering how Zillow was going to make money.

Highlights of Zillow's first deal:

• Subject: 6630 S Nash Way, Chandler AZ 85249 - 4 bed, 2 bath, 2,750 SF
• Purchase: $410,000.00 on 5/18/18 - Zillow closed in 15 days after the homeowner requested an offer
• Listed: $425,000.00 on 5/29/18 - Approximately an 11 day light rehab
• Sold : $403,000.00 on 9/27/18 - 121 CDOM
• Current Zestimate: $412,767.00
• You can look up the house on Zillow's website.

I mentioned earlier the ranks of "iBuyers" that Zillow has joined and is competing against; Opendoor,  Offerpad and Redfin . 

I just realized that the prior hyperlink I had put down for Redfin was to their listing site not their iBuyer site. The Redfin link in this post is the correct link to their iBuyer site.