Dive Brief:
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OfferPad has signed on to Zillow’s new Instant Offers service, which helps owners determine whether to list their home on the open market or sell to an investor, HousingWire reported. Single-family rental company Invitation Homes has committed to be an investor in the program.
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A digital platform that buys homes directly from sellers, OfferPad says its move supports consumer-driven, transparent home sales. Instant Offers is still in its pilot phase, testing in Las Vegas and Orlando, FL, two markets in which OfferPad already operates.
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OfferPad will make offers to owners via Zillow’s program. Sellers accepting the offer will receive OfferPad's other services, such as support during the sales process, coverage of title and escrow fees, and free moves for certain relocations.
Dive Insight:
OfferPad is one of several tech startups designed to reduce the hassle of selling a home. Users enter their home’s address and receive an offer, which they can accept or decline. If they accept, they can then select a move date up to 90 days out.
Similarly, users of Zillow’s Instant Offers will receive offers from investors along with a comparative market analysis from a real estate agent with which to make a comparison. Sellers can then decide whether to take the deal, eliminating many other aspects of the process, such as staging and hosting open houses.
According to research by the National Association of Realtors, 44% of homebuyers in 2016 used online sources for research first. Still, the study indicated that 88% of the time, buyers worked with a real estate agent to find the home they would go on to purchase. Whether services like Instant Offer will shift those statistics to reduce the involvement of a real estate agent in making the purchase and increasing the role of the internet is still to be determined.
