Zillow Group Inc (NASDAQ:AG) is expanding its home retail options to buying and flipping homes.
This change will have the company buying homes in the Phoenix and Las Vegas areas from sellers. These sellers are given an Instant Offer for their property. Once the person chooses to sell the property, Zillow will repair and update it before listing it on the market again.
Zillow says that the advantage of this offering is that it gives sellers more certainty about the deal. This includes not having to worry about a fluctuating price, or when the sale will take place. However, they may have to take a hit to the original price they were hoping to sell the home for to a buyer in the real estate market.
Zillow will have special real estate agents that will handle buying and selling the homes in these markets. The agents will earn commission from the sell prices of the homes. They will also provide sellers with an Instant Offer for their home two days after completing an analysis of the location.
This isn’t actually the first time that Zillow has taken part in buying and flipping homes. It first tested out the Instant Offer program back in May 2017. During this time, the special service was only available for home sellers in Las Vegas and Orlando. It says that these tests will expand to include Phoenix this month.
ZG stock was down 8% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.