Selling directly to Zillow - experience?

Question

Looking to sell a personal vacation beach home in Galveston, TX in need of minor repairs (paint / shower drains / typical turn stuff on the interior) as I’m moving away from the area and don’t want to take on another project that may or may not add value.

As such, I’m thinking of selling directly to Zillow to remove an extra headache.  Does anyone have experience with this?  I imagine there are imbedded fees that might exceed agents commissions, but I’m looking to move some personal properties quickly, and this seems like an interesting alternative to the traditional process.

Thoughts?

Ryan Kelly · Answer

@Daniel Schiller @Alice Huang  Hey Daniel, feel free to pull offer quotes from Zillow or OpenDoor, then compare them with an experienced Realtor's market value. Fees for iBuyer purchases like Zillow can range from 7-10% + all the estimated repairs following their inspections. If you just need to bail, they offer a solution for you. If your motivation is top market value, then I recommend you visit with a few experienced local Realtors to ensure you aren't leaving a ton of equity on the table if you do sell directly to a company.

Alice Huang · Answer

@Daniel Schiller

@Ryan Kelly, you’ve covered this in your Saturday’s session right? Perhaps you have the best insight for Daniel.

Peter M. · Answer

@Daniel Schiller

Definitely worth looking into depending on the situation. I got quotes from all the big ones when selling a SFR 6 months ago. You can PM me for details but zillow was the lowest so i did not go with them. They had the lowest bid and highest amount of repairs. Zillow's business model is different than the other big competitors and is more dependant on the market. Shop around all of them and make sure you can back out for any reason if they make you sign something.

Aaron K. · Answer

@Daniel Schiller yes fees for both Zillow and Opendoor will usually be more than a traditional agent but sometimes they overestimate the value so it can be worth it.  They will inspect the home and sometimes come back with a small repair ask unless your home is trashed.  It doesn't hurt to get the offer.  I'd do your own analysis first and have a list price in mind if you were going to list on your own.  The folks valuing the home are not local so they may miss some things that you or other locals know about.