Zillow Terminates Closing Offers, Citing Virus Concerns
HousingWire broke the news that "after pausing all iBuyer operations, Zillow is now canceling contracts with existing customers." One Contract Cancellation Agreement was titled "Coronavirus Termination of Real Estate Purchase Agreement." (Huh?) Industry rumors have OpenDoor, Offerpad, and other i-Buyers following Zillow's lead. So much for revolutionizing the home selling experience.
Zillow's bolt poses new opportunities for investors as this inventory returns to the market. Owners who were once willing to sell to these i-Buyers for less than a commissioned paid sale will certainly be motivated now.
It's important to remember that i-Buyers were never in it for the ROI on resales but for the fees generated by mortgages through their affiliates. With stock market/bond investors running away from mortgage backed securities, i-Buyers are joining the stampede.
Bottom line: Well-earned bad press for Zillow; solid opportunity for the "real" real estate investors.