Consumers using Zillow in select markets can now add an Opendoor instant offer to their list of home-selling options while using the portal.
Both companies announced Wednesday that they launched their collaborative product allowing homeowners in Atlanta and Raleigh to request a cash offer from Opendoor and a market-price estimate to sell on the open market with a local Zillow Premier Agent partner on Zillow.
“We want to simplify the process by providing sellers all their home-selling options in one place,” said Matt Daimler, Zillow senior vice president of product, in a statement.
According to an Opendoor spokesperson, a seller who accepts the cash offer can sell their home using the Opendoor platform. On the flip side, Zillow will pair consumers opting to sell a home on the market with a local Zillow Premier Agent to guide them through the listing process.
Sellers can use the service as a standalone offering or in tandem with other Zillow home-shopping services, including Zillow Home Loans, working with a Zillow Premier Agent partner to buy their next home or Zillow Closing Services—when that becomes available.
“Selling a home can be stressful and full of unknowns for many people, but selling to Opendoor is simple, certain and on the homeowner’s timeline,” said Brian Tolkin, Opendoor vice president of product, in a statement. “With this new Opendoor experience on Zillow, consumers can explore their selling options and choose one that meets their needs.”
This new product experience will launch in additional markets nationwide in the coming months.
The launch of the cash-offer option comes six months after Zillow and Opendoor announced their multi-year partnership.
Once fierce rivals in the iBuying playing field, the collaboration between Opendoor and Zillow manifested more than a year after the latter bowed out of the sector and sunsetted Zillow Offers.
Despite being out of the instant-buying game since 2021, Zillow is poised to continue profiting from the sector to some degree through its partnership with Opendoor.
Similar to its agent referral business, Zillow stated in a letter to shareholders that it would receive a referral fee when a customer sells to Opendoor. Customers who opt to sell traditionally will be connected with a Zillow Premier Agent partner.
“We’ll also offer a bundle that allows sellers to buy their next home with a Premier Agent partner, finance with Zillow Home Loans and close with Zillow Closing Services while selling their existing home to Opendoor,” read an excerpt from the letter.
The product launch comes ahead of Zillow and Opendoor’s latest earnings calls, where both companies will unpack how they fared in the fourth quarter of 2022 as well as the entire year.
Both companies have weathered the headwinds of the shifting housing market differently thus far.
Like most iBuyers, Opendoor has struggled under the slowing housing market. While it’s still the top dog in the waning pool of large-scale iBuyers, Opendoor has seen its momentum tumble in the later parts of the past year.
Aside from losing nearly $1 billion in the third quarter, Opendoor was seemingly dealt another blow as Eric Wu, the company’s CEO and co-founder, relinquished his position at the helm to run its Marketplace—which handles Opendoor’s new Exclusives product.
President Andrew Low Ah Kee has also resigned from his role to pursue other opportunities.
Zillow had a slightly different experience, as the real estate behemoth seemingly plowed along and leaned heavily on its Premier Agent program, which makes up most of the company’s revenue.
It paid off, as Zillow exceeded its projections for Q3 last year, reeling in $483 million during the quarter.
This is a developing story.
