What is Zillow Offers? | How much does Zillow Offers pay? | Zillow Offers fees | How it works | Locations | Zillow Offers reviews | Alternatives | Zillow Offers vs. Opendoor
⛔ Zillow Offers is no longer purchasing homes
On Nov. 2, 2021, Zillow announced that Zillow Offers would permanently shut down. If you’re still interested in selling to an iBuyer, learn more about the best iBuyers near you.
Zillow Offers was operated by Zillow, the popular real estate website. Through Zillow Offers, Zillow made near-instant cash offers on homes — a practice known as iBuying.
Until it stopped buying homes in November 2021, Zillow Offers was the second-largest iBuyer based on transaction volume1 and was available in 47 metro areas across the nation. Like its competitors, Zillow Offers promised a quick and hassle-free experience, with no need to list or show your home.
After you sold your home to Zillow, the company would repair and list it on the open market — typically for more than what it paid.
However, Zillow Offers fees were typically more than other iBuyers and could have taken a significant slice of your proceeds. Also, the scarcity of third-party Zillow Offers reviews made it difficult to evaluate whether past customers had a good experience.
If you’re looking for an iBuyer, our friends at Clever Real Estate can help by matching you with an agent who can gather iBuyer offers on your behalf.
Why did Zillow Offers shut down?
On Nov. 2, 2021, Zillow announced it was leaving the iBuyer business because of valuation problems with its home-buying model. CEO Richard Barton said Zillow had simply overbid on too many homes, and the company was stuck with thousands of properties worth less than what they paid.
In the months leading up to the shutdown, from July to September 2021, Zillow Offers lost more than $420 million. This loss effectively erased all of Zillow Offers’ profits from the 12 months prior to July 2021.
What if Zillow already agreed to purchase my home?
When Zillow Offers announced the shutdown, it said that sellers who signed a purchase agreement before Nov. 2, 2021 should expect their sale to close as planned.
However, weeks later Zillow cancelled 400 of the remaining 8,172 contracts because they had closing dates in 2022. Zillow returned the earnest money and offered payments for sellers who agreed to terminate their contract by Nov. 30, 2021. Zillow said it didn’t expect to cancel any more contracts.
If you have a home under contract with Zillow Offers, log in to your Zillow Offers account or contact Zillow directly for more information.
What is Zillow Offers?
Zillow Offers, at a glance
|💰 Total Zillow Offers fees||9.5–22%|
|📍 Locations||47 cities in AL, AZ, CA, CO, FL, GA, ID, IN, MN, MO, NV, NJ, NY, NC, OH, OK, OR, SC, TN, TX, UT, VA|
|⏱️ Initial cash offer||48 hours|
|🤝 Closing timeline||1 week to 3 months|
|☎️ Contact||Phone: 1 (833) 963-3377 | Email: email@example.com|
In 2018, Zillow launched Zillow Offers to compete with other iBuyer companies. Its biggest competitor was Opendoor, the nation’s largest iBuyer.
Zillow Offers made all-cash offers and purchased properties directly from home sellers. Like other iBuyers, Zillow Offers:
- Made fast offers and closed on your timeline
- Handled any necessary repairs
- Eliminated the uncertainty of selling to an individual buyer
While some Zillow Offers reviews said the process was seamless, others were shocked by lowball offers and expensive repair costs. We also found that Zillow Offers fees could be up to double its competitors’ rates. At the end of the day, selling to Zillow Offers ended up costing as much or more than selling with a realtor.
» JUMP TO: Zillow Offers reviews | Zillow Offers fees
How much did Zillow Offers pay for houses?
Zillow uses a home valuation tool called a Zestimate to gauge a home’s worth on the open market. In most markets, your home’s Zestimate served as the initial cash offer for eligible homes. However, your final proceeds could have been thousands less once repair costs and service fees were factored in — plus, Zestimates can be off by an average of $5,500–19,800.
Inaccurate Zestimates may have been part of what led to Zillow Offers’ downfall. Real estate analyst Mike DelPrete notes that Zillow was overpaying by about $65,000 per home just before it got out of the iBuying business. DelPrete sees this as a problem with Zillow’s execution, not with iBuying in general. As the market cooled off, other iBuyers like Opendoor and Offerpad began to pay less for homes and managed to avoid huge losses like Zillow.
Zillow had extremely high fees
Altogether, Zillow Offers fees could have added up to as much as 22% of your home’s sale price — much more than you’d pay selling on the open market. So even though Zillow made very competitive offers, the high fees that home sellers had to pay made the final offer far less than fair market value.
For a $400,000 home, we found Zillow Offers could cause you to lose up to $76,200, compared to what you might have earned on the open market.
|Cost||Zillow Offers||Listing on the open market|
|🏡 Sale price||$394,400||$400,000|
|💵 Total fees||9.5–22% | $37,468–86,768||6% | $24,000|
|💰 Closing costs||1–3% | $3,944–11,832||1-3% | $4,000–12,000|
We found Zillow Offers reviews from customers who declined their cash offer —and later earned thousands more by listing on the open market.
» LEARN: How to determine the fair market value of your home
Zillow Offers fees
The biggest drawback to using Zillow Offers was its costly fees, which were as much as 9.5–22% of a home’s sale price.
Additionally, the service was designed to aid Zillow’s in-house agents, whose clients might have wanted the speed and certainty of a cash offer. If you had already signed with an agent, you would have had to pay their commission — which could have been as much as 3% of your sale price — just for submitting an online form.
Below, we broke down the cost of selling to Zillow Offers vs. listing your home on the open market.
|Cost||Zillow Offers||Traditional cost to sell|
|🤝 Service fee||1.5–9% (average: 7.5%)||-|
|💵 Realtor commission||0–3%||6%|
|🏡 Selling costs||6%||-|
|💰 Closing costs||1–3%||1–3%|
As you can see, Zillow Offers’ fees could have swallowed a significant portion of your proceeds. Zillow Offers also charged almost double its competitors’ rates — for example, Opendoor has a flat rate of 5%.
By contrast, you could earn thousands more by listing on the open market. Our friends at Clever can match you with agents from major brokerages such as RE/MAX, Coldwell Banker, and Keller Williams. Even better, you’ll get top-rated service AND save thanks to pre-negotiated low rates of just 1.5% in listing fees.
How Zillow Offers worked
Selling your home to Zillow Offers was simple, with just a few steps:
- Request a Zillow cash offer online. This was as simple as entering your property’s full address and providing basic information about your home’s age and features.
- Receive an initial cash offer. After your request, Zillow Offers contacted you within 48 hours. If your home qualified, your Zestimate (Zillow’s home valuation tool) served as the initial Zillow cash offer.
- Schedule a home inspection. Zillow’s inspectors identified any repairs or defects that impacted your property’s value.
- Review the final offer. The offer was reduced by the amount Zillow deemed necessary for repairs.
- Close the deal. Closing occurred in as little as seven days, or up to 90 days for sellers who needed extra time.
Where did Zillow Offers buy houses?
Before it shut down in November 2021, Zillow Offers was available in 47 cities throughout the U.S.
|California||Los Angeles, Riverside, Sacramento, San Diego|
|Colorado||Colorado Springs, Denver, Fort Collins|
|Florida||Jacksonville, Miami, Orlando, Tampa|
|North Carolina||Charlotte, Raleigh|
|Texas||Austin, Dallas-Fort Worth, Houston, San Antonio|
Buying a Zillow-owned home
After Zillow Offers purchased homes, it listed them on the open market for more than what it paid the previous seller.
Buying Zillow-owned homes was relatively streamlined compared to a conventional transaction:
- You submitted an offer for the property and got a reply within 48 hours.
- Your closing date was based on your schedule.
- Homes were recently repaired and vacant, so you could move in right away.
- The sale wasn’t contingent on a seller’s ability to close on their next property.
- Zillow paid a standard buyer’s agent commission.
However, there were some drawbacks to buying a home from Zillow, including the unwillingness of Zillow to negotiate over the sale price or repairs.
Other Zillow services
Zillow still offers additional in-house services that can streamline your transaction, whether you’re buying or selling a home:
- Zillow Home Loans: Zillow partners with a network of mortgage lenders, allowing buyers to get pre-qualified for loans at competitive rates.
- Zillow Closing Services: Zillow’s in-house closing services allow the company to hold the buyer’s deposit in escrow, arrange the exchange of funds, conduct a title search, and provide title insurance.
⚡ Quick tip
If you sold your home to Zillow Offers, you weren’t required to use Zillow Home Loans or Zillow Closing Services. In fact, you may have been able to get better rates by looking at other lenders!
When it comes to getting the best mortgage rate, we recommend shopping around in almost all circumstances.
Zillow Offers reviews
One of the biggest downsides of working with Zillow Offers was that there were so few verified customer reviews on third party websites. Instead, most reviews focused on Zillow’s agents, website, or app. That made it difficult to determine past customers’ experience with Zillow’s cash offers.
While the Zillow website did have testimonials, they were curated by Zillow — so we didn’t consider them objective.
We were able to find a positive Zillow Offers review from a customer who found the process to be a quick, simple alternative to a traditional home sale:
However, Zillow Offers complaints focused on issues with its low offer prices and expensive repairs.
For example, one customer decided not to sell their home to Zillow because the final cash offer dropped by thousands of dollars after their inspection:
Similarly, another Zillow Offers complaint focused on exorbitant repair costs that would have slashed the seller’s proceeds:
Alternatives to Zillow Offers
Low commission real estate agents vs. Zillow Offers
Now that Zillow Offers is shut down, you might want to consider listing your home with a low commission real estate company.
Low commission real estate companies allow you to list on the open market while also saving thousands on commission fees. Lower selling costs keep more money in your pocket — plus, there’s always a chance that competition on the open market can drive your sale price up, too.
Our team researched the best low commission real estate companies to help you choose the best fit for your sale.
» LEARN: Top 10 Low Commission Real Estate Companies
Opendoor vs. Zillow Offers
Opendoor is the largest iBuyer in the U.S. and still makes fast cash offers on homes like Zillow Offers once did. But the two companies differed in their fees, availability, and customer reviews.
» Want to learn more about Opendoor? Read our complete review.
|💰 Total fees||9.5–22%||5%|
|📍 Locations||47 metro areas nationwide||47 metro areas nationwide|
|⏱️ Timeline||Offer: 48 hours | Closing: 7-90 days||Offer: 24 hours | Closing: 14–60 days|
|⭐ Customer reviews||Unavailable||4.3/5 stars (2,733 reviews)|
Overall, Opendoor charges lower fees, serves more locations, and has stronger customer reviews than Zillow Offers did.
Zillow Offers vs. other iBuyers
Although Zillow Offers was the second-biggest iBuyer company by transaction volume, its high fees made it an expensive choice.
Additionally, Zillow encouraged its Premier Agents to refer customers to Zillow Offers — which could have driven up costs up even more, since you had to pay commission.
We’ve reviewed the top active iBuyers so you can decide if they’re right for you.
Flexible closing timesFull Review
- 5% service fee
- Close in just 8 days
- Great customer service
Offerpad can provide home sellers with a fast cash offer and quick closing (as little as eight days!). We noticed that most recent Offerpad reviews are positive, with home sellers noting that Offerpad reps were friendly and helpful throughout the selling process.
- Close in just eight days
- No need to repair or prep home
- Extended stay option for home sellers
- Some customers report high repair costs that reduced their final offer
- Free local moves are only available within a 50-mile radius
Offerpad is available in 25 metro areas across AL, AZ, CA, CO, FL, GA, IN, KS, MO, NV, NC, OH, SC, TN, TX.
Customer reviews of Offerpad are mostly positive, with an average rate of 3.7 across 319 reviews.
Broad purchasing criteriaFull Review
- Fees from 5-13%
- Close in 10 days
- Buys vacant or owner-occupied houses
Redfin Now can provide home sellers in select markets with a fast, predictable sale. Unlike most iBuyers, RedfinNow even buys vacant homes, which could be good news for sellers in difficult situations. However, the high service fees and additional closing costs could be expensive.
- Purchases homes as is, with broder eligibilty criteria than most iBuyers
- Flexible closing window of 10-90 days
- Fees can be as high as 13%
- No home trade-in incentive
- No late checkout option
RedfinNow is available in metro areas across .
Because Redfin Now is the smallest iBuyer, reviews of the service aren’t widely available. However, across 2,733 reviews the company has an average rating ofm4.3 out of 5.
Should you have sold your home to Zillow Offers?
|✅ Pros||❌ Cons|
|Free, no-obligation cash offer||Expensive repair fees limited profits|
|Flexible closing dates (7–90 days)||Low offers may have been thousands below fair market value|
|No repairs or upgrades||Little opportunity to negotiate the sale price or repairs|
|No need to prepare, list, or show your home to prospective buyers||Not all homes and locations were eligible|
Like other iBuyers, Zillow Offers promised a fast, stress-free, home-selling experience. It provided cash offers in 48 hours and closed within seven days, with no need to repair, list, or market your property.
However, Zillow Offers’ fees and repair costs added up fast. You might have earned thousands less from your sale than you would have received by listing your home on the open market.
Before selling your home to an iBuyer, we recommend speaking with a real estate agent who knows how quickly homes are selling near you — and how much you might earn from your sale. Our friends at Clever Real Estate have a nationwide network of top-rated partner agents who work for pre-negotiated rates of just 1.5% in listing fees.
Frequently asked questions
How did Zillow Offers work?
If you wanted to sell your home to the now-closed Zillow Offers, the process was very simple. You submitted your information online to get an initial cash offer within 48 hours, then scheduled an inspection. After the inspection, Zillow adjusted its offer to account for repairs. If getting top-dollar for your home is a top priority, consider selling with a discount real estate broker who charges low commission rates. If you need to sell quickly, Opendoor offers much lower service fees than Zillow Offers.
Does Zillow buy homes?
Until November 2021, Zillow made cash offers on homes through Zillow Offers, its iBuyer service. However, its fees were as high as 22% — double competitors' rates. If you want to sell fast and save thousands on fees, we recommend working with a low commission real estate company.
Why did Zillow Offers shut down?
The company was losing too much money overpaying for homes. Zillow admitted there were problems with its buying model, causing it to overpay for homes from July through September 2021. The company ended up losing $420 million and owning thousands of homes worth less than what it paid.
Is Opendoor better than Zillow Offers?
Opendoor is a better option for sellers who want to save money on fees. Opendoor buys homes for a flat 5% fee, while Zillow’s fees ranged anywhere from 9.5–22% of the offer price. Read our complete review of Opendoor.
Opendoor, Reviewed and Explained: In our in-depth review of Opendoor, you’ll learn how the iBuying process works — and whether Opendoor might be a good choice for your home sale.
What Companies Offer the Lowest Real Estate Commission Fees?: With so many low commission real estate companies on the market, there’s no reason to pay the traditional 6% commission. Learn how to get the best price without sacrificing on service.
Read This Before You List Your FSBO on Zillow: Thinking of attempting a DIY sale on Zillow? We researched how it works and the biggest risks you’ll face.