Zillow strikes iBuying partnership with Opendoor
Just a few quarters after shutting down its own iBuying operation, Zillow is partnering with Opendoor to help users again get instant offers on the homes they list.
Why it matters: The deal gives both companies a relatively risk-free way to shore up sales in the face of a slowing real estate market.
The intrigue: Opendoor reached a $62 million settlement with the FTC earlier this week, after the agency found it deceived customers “into thinking that they could make more money selling their home to Opendoor than on the open market.”
How it works: Through the partnership, sellers on Zillow’s platform can compare a cash offer from Opendoor against an estimate of the amount they could receive from a traditional open-market sale.
- Zillow will get a referral fee when a customer takes an Opendoor offer, and if they don’t, it can refer them to Premier Agents that advertise on its platform.
Flashback: After three years in business, Zillow shuttered its iBuying operation last November, writing down more than $540 million and laying off 25% of its workforce in the process.