This report is available exclusively to subscribers of Inman Intel, a data and research arm of Inman offering deep insights and market intelligence on the business of residential real estate and proptech. Subscribe today.
In a sign of a deepening relationship between ex-rivals Zillow and Opendoor, the two companies announced Thursday that they’re expanding their cash offer partnership to nearly a dozen new markets.
The partnership allows users of Zillow’s sites and apps to request an instant cash offer on their home from Opendoor. At the same time, users can get an estimate of what their home would sell for on the open market from an agent using Zillow’s Premier Agent lead generation program. The partnership launched in February in Atlanta, Georgia, and Raleigh, North Carolina.
On Thursday, the companies revealed that they are extending the program to 11 new markets:
- Tucson, Arizona
- Denver, Colorado
- Colorado Springs, Colorado
- Boulder, Colorado
- Fort Collins, Colorado
- Charlotte, North Carolina
- Columbia, South Carolina
- Greenville, South Carolina
- San Antonio, Texas
- Austin, Texas
- Killeen, Texas
In a blog post on the expansion, Opendoor said the move means “more homesellers can easily compare their options and make the decision that’s best for them.”
Thursday’s expansion follows a March announcement that the companies were expanding the partnership to Houston, Phoenix and Dallas. That means in total, Zillow and Opendoor are now working together in 16 markets across the U.S. Most of those markets are located in the Sunbelt, which has long been an epicenter for iBuying activity.
This map shows the markets in which Zillow and Opendoor are providing cash offers to consumers. Credit: Opendoor
News that Zillow and Opendoor were teaming up first broke last August. The development was something of a surprise because, up until fall of 2021, the companies had been fierce competitors — and top dogs — in the iBuying space. That competition ended in the fall of 2021 when Zillow announced it would end its iBuying program.
In that light, and with every real estate company feeling the effects of a rate-induced market slowdown last year, the partnership between Opendoor and Zillow represented a critical path forward for both companies. For Zillow, it offered an asset-light way to serve cash offers to interested consumers without spending the resources to buy and renovate properties. For Opendoor, it meant tapping into a huge potential new audience.
Zillow CEO Rich Barton has also said during his company’s earnings calls that the partnership with Opendoor is an important part of the “Zillow 2.0” strategy that is meant to grow the company beyond its roots as a consumer portal and lead generation tool.
In Thursday’s blog post, Opendoor said the partnership ultimately gives consumers control over their own homeselling timeline.
“Our partnership with Zillow provides customers with clear options,” the blog post states, adding that whatever option consumers choose, “Opendoor will be with you every step of the way.”
