Zillow announced last Thursday that they will soon begin buying homes from sellers directly and then re-selling homes in Phoenix and Las Vegas. Zillow will make the “necessary repairs and updates” before re-selling their homes. In essence, they will become Fix and Flippers. But, they will not cut RE Agents out of their commissions as they will use agents to buy the properties and sell the properties.
Zillow has found that through their test marketing of Instant Offers over the last year that a “vast majority” of sellers who requested an Instant Offer ended up selling their home with an agent. This is another way to earn more revenue from real estate agents.
They are now rolling out this program in Phoenix with 2 big real estate brokerages and 3 brokerages in Las Vegas.