“Then it’s time for open houses and showings. Real estate agent George Laughton, whose firm Laughton Team is Zillow’s launch partner in Phoenix, said he expects to lean on the company for branding — Zillow balloons and fliers at the open house, for example — because he thinks having the name on everything will be a benefit. Otherwise, this first-of-its-kind sale has been business as usual for Laughton.
“We’re doing the normal type of marketing we would do, posting it as coming soon on Zillow, so nothing too out of the ordinary from what we would normally do,” Laughton said.”
Zillow balloons.
“In the long term we hope to be able to bring this to as many consumers as we can. Every homeowner should ideally be able to have not just a Zestimate, but have a Zestimate and have a cash offer and an agent and know what their choices are,” Wacksman said.
Wow. Just wow.
Bought for $410k
Listed for $425k
Gross Profit $15k
3% Commision On Sale $12.75
(Assuming 2% buyside/ 1% sellside)
Net Profit $2,250 (1/2%)
You know there are other costs involved! Maybe the entire $2,250
WTF!? ????♂️
What am I missing?
When Zillow acquires a property, does Zillow pay a commission to anyone? If not, theoretically, Zillow purchases every property with a 3% equity edge. Was the listing agent eliminated in this process?
@Eric It’s all about volume. In Spencer’s example he was using $3,500 as a net profit number at only 5% of the market which would be $857,000,000 in revenue a year.
So to answer your question, What are you are missing?
Close to a Billion dollars
????
@Saul My understanding is that Zillow uses Premier Agents for both the buy and sell side. Whether they charge the agent an extra fee or negotiate a lower commission rate, or both is something they haven’t disclosed.
“Every homeowner should ideally be able to have not just a Zestimate, but have a Zestimate and have a cash offer”
Every Seller??!! We all know that will never happen but it’s still laughable to even suggest that.