Skip to main content

Zillow to start buying homes directly from sellers in Twin Cities

The Twin Cities becomes the 10th metro where Zillow has launched its buying service.

Online property giant Zillow has launched a new service in the Twin Cities where it will make an offer to buy homes directly from sellers.

Zillow on Monday made Minneapolis-St. Paul the 10th metro area in the country where it operates Zillow Offers, a service where it buys homes, prepares them for showings, and then lists them for sale.

The service is designed to give homeowners more flexibility when they want to close on their house sale, as well not having to worry about getting their property prepped for a showing.

Zillow makes a "free, no-obligation cash offer," with the seller picking a closing date once they accept.

Zillow says that for each home it buys and sells, it will use a local real estate agent and broker, who will receive a commission on the sale. Sellers can pick their own realtor to act as an agent.

The company charges a variable realtor fee that sellers have to pay, which in other markets has averaged out to around 7 percent of the value of the home being sold.

This would make it more expensive than using a regular realtor, with Realtor.com noting that listing agents typically charge around 6 percent.

It's also more expensive than listing and selling through a rival website like Redfin, which charges around 4.5 percent in total commission upon a sale.

Sponsored: Sun-drenched Linden Hills home is in pristine condition

But Zillow is gambling that the added convenience of being able to dictate when you sell your home will prove an attractive prospect to some homeowners in the metro.

"It’s clear sellers are looking for a simpler, less-stressful way to sell their home – with over 100,000 homeowners having requested an offer from us since we launched a year ago," said Zillow Brand President Jeremy Wacksman. 

"Zillow Offers gives homeowners an unprecedented level of control and convenience when selling, helping them move more seamlessly onto the next stage of their life."

Not just content with buying homes from sellers, Zillow is also making Zillow Home Loans available in the Twin Cities, allowing homeowners who sell to Zillow get pre-approved for a mortgage as they move up the ladder.

Sign up for our "Minnesota Nice Homes" newsletters

Since it first launched last year, Zillow Offers says it receives a request to buy a home every two minutes, representing some $200 million in transaction value per day, according to the Austin Business Journals.

It remains to be seen how successful it is in the Twin Cities, where housing supply is tight and most sellers don't usually have any problems finding buyers.

Nonetheless, we reported earlier this year that while houses in and around the $300,000 mark are being snapped up almost immediately – sometimes above asking price – there remains lower demand for houses in the $500,000-plus range.

Next Up

Wild

Wild flip the script, dominate Blackhawks

Ryan Hartman scored twice to earn the first game of a back-to-back.

Hopkins Basketball

Hopkins suffers rare loss to No. 1 ranked Sidwell Friends

The Royals held their own in a battle of the nation's best.

argue-wertman booking photos

Charges: 2 teens responsible for violent carjacking spree across Twin Cities

They face a combined 31 felony counts, all tied to carjackings and related crimes.

rep nolan west mn house

MN rep. says he was 'assaulted' at activist group's public meeting

The Republican said a man grabbed his arms and yanked him from the room.

Screen Shot 2022-01-20 at 12.56.52 PM

What were the 'bizarre things' seen in Minnesota's sky?

The mysterious streaks were not UFOs and they weren't pieces of an asteroid.

icicles, freezing weather, cold weather

Booming noises in the night could be frost quakes

The loud sounds are most likely to happen during the middle of the night.

coronavirus, coronavirus test, covid-19

Free COVID testing site to open in St. Paul for 3 weeks

The federal testing site comes as demand for testing remains high.

Reyel Simmons photo 1 - complaint - crop

MN TikToker accused of faking federal agent life pleads guilty

He told his 10,000 followers he was a Homeland Security agent — authorities say it was a lie.

Wilf

Report: Vikings request second interview with 2 GM candidates

Ryan Poles of the Chiefs and Kwesi Adofo-Mensah of the Browns.

Amaya Battle

Hopkins takes on No. 1 team in the country on ESPNU Friday

The game will feature a pair of top recruits in the Class of 2022.

st. paul federation of educators - teachers

Educators in Minneapolis, St. Paul could strike amid contract negotiations

Teachers and support staff are demanding smaller class sizes, mental health support and better pay.

Related

House for sale

Zillow to start making offers on Twin Cities homes based off its 'Zestimates'

The Twin Cities property market is seriously hot right now.

House for sale

Twin Cities housing market offering mixed blessings for buyers, sellers

It's good for those moving up the ladder, less so for those getting on.

House for sale

Twin Cities median home price hits record $280,000 in 2019

The Minneapolis Area Association of Realtors has issued its annual report.

House for sale

Zillow says its upgraded 'Zestimates' are now more accurate

It's employing machine learning to increase the accuracy of its price estimation feature.

House for sale

A seller's market: Record-low inventory in Twin Cities, buyers fight for new homes

Area Realtor associations have released their February housing report.

House for sale

Median house prices in Twin Cities pass $300,000 for first time

However, there was a significant slump in new listings resulting from COVID-19.

Pixabay - keys home house

Median sale price of Twin Cities homes hit whopping $350,000 in May

High demand and low supply is the reality for buyers throughout much of the state.