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.
Author:
Publish date:

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

Plainview

Judge orders Minnesota gym that defied shutdown to close

Attorney General Keith Ellison sued the gym after it remained open.

montana cutbank

Charges: Man shot victim 'without provocation' using sawed-off shotgun

The incident happened on Nov. 24 in Ten Lake Township, located in Beltrami County.

Governor Tim Walz

Watch live: Walz, first responders address Minnesotans

Some departments have been forced to shift staffing or suspend service due to COVID-19.

covid-19, coronavirus

CDC says COVID-19 quarantine period can be cut to 10 or 7 days

You can come out of a 7-day quarantine following exposure provided you've had a negative test.

maple grove fire

1 person found dead inside Maple Grove business that burned down

A person had been unaccounted following the fire that destroyed Hanson Implement and Storage Tuesday night.

One-dollar bill, cash, money

Appeals court rules MN high school students can get unemployment benefits

They've been denied the benefits, and some were even asked to pay them back.

covid-19, coronavirus

Dec. 2 COVID-19 update: 77 more deaths in Minnesota

The death toll is closing in on 3,700 in Minnesota.

City Pages

Fan creates City Pages archive, Star Tribune tells him to remove it

After word spread that the defunct newspaper's website would go down, a fan created his own copy. Then he got a cease and desist letter.

Adam Thielen

Vikings activate Adam Thielen off COVID-19/reserve list

The star receiver missed last week's victory over Carolina.

Screen Shot 2020-12-02 at 10.27.14 AM

Naked man shot by St. Paul cop is charged for sexual assault of ex-girlfriend

The 31-year-old suspect remains at Regions Hospital after being shot.

Lindsay Whalen

Whalen's Gophers start season with only 7 players available

Whalen isn't happy that a transfer wasn't granted immediate eligibility to play.

Related

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

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.

House for sale

MN house prices rising despite pandemic, though pending sales are tumbling

The coronavirus crisis is having an impact on the real estate market, just not house prices.

These are the fastest growing Twin Cities suburbs for renters

RentCafe has released figures showing the growth in renters over a 5-year period.

image003

Gallery: A home that's 30 mins from the metro, but feels like a country retreat

It's located just north of Stillwater, and comes with its own sauna.