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Zillow and Opendoor, once rivals in iBuying before the search behemoth abandoned its program, announced the roll-out of their new partnership in Atlanta and Raleigh, North Carolina, on Wednesday.
Homeowners looking to buy and sell in those markets can get an instant cash offer from Opendoor and simultaneously hear from Zillow what their home might sell for on the market.
They’re working together as Zillow staves off moves by CoStar to take over the online residential real estate market and Opendoor seeks to rewrite its business model.
“We want to simplify the process by providing sellers all their homeselling options in one place,” said Matt Daimler, Zillow senior vice president of product. “Customers can now easily get both 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 – and then make the decision that works best for their situation.”
If a seller decides to accept an offer from Opendoor, they can work with the company on the timing of the sale, the company said. If they want to sell on the open market, they’ll be paired with a Zillow Premier Agent to list their home, the companies said.
The companies said homesellers can choose to use one or any number of a suite of Zillow services like home loans, buying their next home, “or, when it’s available, closing with Zillow Closing Services.”
The two said their partnership would expand to more markets in the coming months.
“An Opendoor sale means no home showings, no home prep or making repairs and none of the hassle that can come with a traditional listing,” said Brian Tolkin, Opendoor Vice President of Product. “With this new Opendoor experience on Zillow, consumers can explore their selling options and choose one that meets their needs.”
Opendoor became the leader in the iBuying space in November 2021, when Zillow bowed out of the practice and began selling off all of its inventory.
Nine months later, the two companies announced they planned to form a “multi-year” partnership that would give Zillow customers an option to sell quickly and help Opendoor expand its reach.
Wednesday’s announcement of the entry in the two markets comes on the day that Zillow is set to report its profit or loss from the final three months of 2022.
Opendoor reported losing nearly $1 billion in the third quarter of 2022, as many of the homes it bought during the unprecedented run up in prices began to lose value. Executives have said the fourth quarter would be the “trough” for the business. The company reports those results next Thursday.
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