Zillow Offers (formerly Zillow Instant Offers) is operated by Zillow, the popular real estate website. Through Zillow Offers, Zillow makes near-instant cash offers on homes — a practice known as iBuying.
Zillow Offers is the second-largest iBuyer based on transaction volume and is available in 25 metro areas across the nation. Like its competitors, Zillow Offers promises a quick and hassle-free experience, with no need to repair, list, or show your home.
However, Zillow Offers fees are typically more expensive than other iBuyers — potentially taking a significant slice of your proceeds. Also, the scarcity of third-party Zillow Offers reviews makes it difficult to evaluate whether past customers had a good experience.
After you sell your home to Zillow, the company will repair and list it on the open market — typically for more than what they paid. The best way to make sure you’re not leaving money on the table is to speak with a realtor first.
Our friends at Clever Real Estate can introduce you to qualified real estate agents in your area. You’ll learn how quickly homes are selling and how much you might earn from your sale. Best of all, sellers who list with Clever pay pre-negotiated, low rates of just $3,000 or 1% — helping you earn more from your sale!
» CONNECT: Meet top-rated real estate agents near you!
What is Zillow Offers?
Zillow Offers, at a glance
|💰 Total Zillow Offers fees||9.5-22%|
|📍 Locations||25 cities in AZ, CA, CO, FL, GA, MN, NV, NC, OH, OR, TN, and TX|
|⏱️ Initial cash offer||48 hours|
|🤝 Closing timeline||1 week to 3 months|
|☎️ Contact||Phone: 1 (833) 963-3377 | Email: email@example.com|
In 2018, Zillow launched Zillow Instant Offers to compete with other iBuyer companies. Its biggest competitor is Opendoor, the nation’s largest iBuyer. The service was later rebranded under its current name, Zillow Offers.
Zillow Offers makes all-cash offers and purchases properties directly from home sellers. Like other iBuyers, Zillow Offers:
- Makes fast offers and closes on your timeline
- Handles any necessary repairs
- Eliminates the uncertainty of selling to an individual buyer
While some Zillow Offers reviews say the process is seamless, others were shocked by lowball offers and expensive repair costs. We also found that Zillow Offers fees can be up to double its competitors’ rates. At the end of the day, it will cost as much or more than selling with a realtor.
How much does Zillow Offers pay for houses?
In most markets, your home’s Zestimate will serve as the initial cash offer for eligible homes. However, your final proceeds could be thousands less once repair costs and service fees are factored in — plus, Zestimates can be off by an average of $5,500-19,800.
Additional research by real estate expert Mike DelPrete found iBuyers (including Zillow Offers) pay approximately 1.4% less than fair market value. Though that may sound like an insignificant difference, you’d earn $5,600 less on a $400,000 home sale!
Beyond the disparity between offer prices and fair market value, you’ll also have to factor in Zillow Offers fees, including a service fee, selling costs, closing costs, and realtor commission (if applicable).
Altogether, Zillow Offers fees can add up to as much as 22% of your home’s sale price — much more than you’d pay while selling on the open market.
For a $400,000 home, we found that Zillow Offers could cause you to lose up to $76,200, compared to what you might earn on the open market.
|Cost||Zillow Offers||Listing on the open market|
|🏡 Sale price||$394,400||$400,000|
|💵 Total fees||9.5-22% | $37,468 - $86,768||6% | $24,000|
|💰 Closing costs||1-3% | $3,944 - $11,832||1-3% | $4,000 - $12,000|
|Final proceeds||$295,800 - $352,988||$364,000 - $372,000|
We found Zillow Offers reviews from customers who declined their cash offer — and later earned thousands more by listing on the open market.
Zillow Offers fees
The biggest drawback to using Zillow Offers are its costly fees, which can be as much as 9.5-22% of your home’s sale price.
Additionally, the service was designed to aid Zillow’s in-house agents, whose clients might want the speed and certainty of a cash offer. If you’ve already signed with an agent, you’ll have to pay their commission — which could be as much as 3% of your sale price, just for submitting an online form.
Below, we broke down the cost of selling to Zillow Offers versus listing your home on the open market.
|Cost||Zillow Offers||Traditional cost to sell|
|🤝 Service fee||1.5-9% (average: 7.5%)||-|
|💵 Realtor commission||0-3%||6%|
|🏡 Selling costs||6%||-|
|💰 Closing costs||1-3%||1-3%|
As you can see, Zillow Offers’ fees can add up to a significant portion of your proceeds. Zillow Offers also charges almost double its competitors’ rates — for example, Opendoor’s fees range from 5-10%.
By contrast, you could earn thousands more by listing on the open market. Our friends at Clever can match you with agents from major brokerages such as RE/MAX, Coldwell Banker, and Keller Williams. Even better, you’ll get top-rated service AND save thanks to pre-negotiated low rates of just $3,000 or 1% in listing fees.
How Zillow Offers works
Selling your home to Zillow Offers is simple, with just four steps:
- Request a Zillow cash offer online. This is as simple as entering your property’s full address and providing basic information about your home’s age and features.
- Receive an initial cash offer. Zillow Offers will contact you within 48 hours. If your home qualifies, your Zestimate will serve as the initial Zillow cash offer.
- Schedule a home inspection. Zillow’s inspectors will identify any repairs or defects that impact your property’s value.
- Review the final offer. The offer will be reduced by the amount Zillow deems necessary for repairs.
- Close the deal. Closing can occur in as little as seven days, or up to 90 days for sellers who need extra time.
Where does Zillow Offers buy houses?
As of August 2021, Zillow Offers is available in 25 cities throughout 12 states.
|California||Los Angeles, Riverside, Sacramento, San Diego|
|Colorado||Colorado Springs, Denver, Fort Collins|
|Florida||Jacksonville, Miami, Orlando, Tampa|
|North Carolina||Charlotte, Raleigh|
|Texas||Austin, Dallas-Fort Worth, Houston, San Antonio|
Zillow Offers may expand to new locations, but so far it doesn’t buy properties outside eligible service areas.
Buying a home from Zillow
After Zillow Offers purchases homes, it lists them on the open market for more than what it paid the previous seller.
Purchasing Zillow-owned homes is relatively streamlined compared to a conventional transaction:
- You’ll submit an offer for the property and get a reply within just 48 hours.
- Your closing date is based on your schedule.
- Homes are recently repaired and vacant, so you can move in right away.
- The sale isn’t contingent on a seller’s ability to close on their next property.
- Zillow will pay a standard buyer’s agent commission.
However, there are some drawbacks to buying a home from Zillow. It’s unlikely that you’ll have much room to negotiate over the sale price or repairs.
Other Zillow services
Zillow offers additional in-house services that can streamline your transaction, whether you’re buying or selling a home:
- Zillow Home Loans: Zillow partners a network of mortgage lenders, allowing buyers to get pre-qualified for loans at competitive rates. Buyers who purchase Zillow-owned homes and also obtain a loan through a Zillow partner lender will receive up to a $1,500 lender credit.
- Zillow Closing Services: Zillow’s in-house closing services allow the company to hold the buyer’s deposit in escrow, arrange the exchange of funds, conduct a title search, and provide title insurance.
⚡ Quick tip
If you sell your home to Zillow Offers, you aren’t required to use Zillow Home Loans or Zillow Closing Services. In fact, you may be able to get better rates by shopping around!
Zillow Offers reviews
One of the biggest downsides of working with Zillow Offers is that there are so few verified customer reviews on third party websites, where most reviews focus on Zillow’s agents, website, or app. That makes it difficult to determine past customers’ experience with Zillow’s cash offers.
While the Zillow website does have testimonials, they’re curated by Zillow — so we don’t consider them objective.
We were able to find a positive Zillow Offers review from a customer who found the process to be a quick, simple alternative to a traditional home sale:
However, Zillow Offers complaints focused on issues with its low offer prices and expensive repairs.
For example, one customer decided not to sell their home to Zillow because the final cash offer dropped by thousands of dollars after their inspection:
Similarly, another Zillow Offers complaint focused on exorbitant repair costs that would have slashed the seller’s proceeds:
Alternatives to Zillow Offers
Low commission real estate agents vs. Zillow Offers
If you want to avoid Zillow Offers’ high fees and get the best possible offer price, the best alternative is listing with a low commission real estate company.
These companies allow you to list on the open market while also saving thousands on commission fees. Lower selling costs keep more money in your pocket — plus, there’s always a chance that competition on the open market can drive your sale price up, too.
Our team researched the best low commission real estate companies to help you choose the best fit for your sale.
Opendoor vs. Zillow Offers
Opendoor and Zillow Offers both make fast cash offers on homes — but the two companies differ in their fees, availability, and customer reviews.
Below, we broke down similarities and differences to help you decide which is best for your home sale.
|💰 Total fees||9.5-22%||5.5-10%|
|📍 Locations||25 metro areas across 12 states||40+ metro areas across 17 states|
|⏱️ Timeline||Offer: 48 hours | Closing: 7-90 days||Offer: 24 hours | Closing: 14-60 days|
|⭐ Customer reviews||Unavailable||4/5 stars (840+ reviews)|
Overall, Opendoor charges lower fees, serves more locations, and has stronger customer reviews — making it steep competition for Zillow Offers.
» Interested in Opendoor? Get a cash offer today!
Zillow Offers vs. other iBuyers
Although Zillow Offers is the second-biggest iBuyer company by transaction volume, its high fees make it an expensive choice.
Additionally, Zillow encourages its Premier Agents to refer customers to Zillow Offers — which can drive costs up even more, since you’ll have to pay commission.
We’ve created in-depth reviews of all the major iBuyer companies so you can decide if Zillow Offers is right for you.
High service feesFull Review
- 6-10% service fee
- Close in just 10 days
- High repair costs
Offerpad can provide home sellers with a fast cash offer and quick closing, but their reputation isn’t as good as other iBuyers, particularly when it comes to their repair costs and their 1% cancellation fee.
- Close in just 10 days
- No need to repair or prep home
- Extended stay option for home sellers
- Customers report high repair costs that reduced their final offer dramatically
- Closing costs and service fees add up to over 10%, in some cases
Offerpad is available in 18 metro areas across 11 states: AL, AZ, CO, FL, GA, IN, NV, NC, SC, TN, and TX.
Broad purchasing criteriaFull Review
- Fees from 6-12%
- Close in 10 days
- Buys vacant or occupied houses
Redfin Now can provide home sellers in select markets with a fast, predictable sale. Unlike most iBuyers, RedfinNow even buys vacant homes, which could be good news for sellers in difficult situations. However, the high service fees and additional closing costs could be expensive.
- Purchases homes as is, with broder eligibilty criteria than most iBuyers
- Flexible closing window of 10-60 days
- Fees can be as high as 12%
- No home trade-in incentive
- No late checkout option
RedfinNow is available in 26 metro areas across ten states: AZ, CA, CO, MD, MA, NV, OR, TX, VA, and WA. It’s also the only iBuyer currently operating in Washington D.C.
Buy a new home before you sell you old oneFull Review
- 1.25% fee to trade your home
- Flexible timeline up to 6 months
- $25,000 cash advance
Knock’s business model is not like typical iBuyers since it’s actually a home trade-in service. For home sellers who are struggling with timing the sale of the old home in order to purchase a new one, Knock can make the situation easier by giving you the ability to make a non-contingent offer. However, you’ll have to pay a 1.25% fee for this service.
- Make a non-contingent offer to buy your next home
- $25,000 interest-free cash advance
- Avoid paying two mortgages at once
- Doesn’t work with owners of distressed properties
- Old mortgage must be repaid after closing
Knock is currently available in 50 metro areas across 10 states: AZ, CA, CO, FL, GA, MN, NC, SC, TN, and TX.
Buy a new home before you sell you old oneFull Review
- 6% service fee
- Backup offer from Orchard
- Full listing service
Orchard makes it easier to finance the purchase of a new home before you sell your old one, but they’ll only purchase their home directly from you if it doesn’t sell on the open market after 30 days. If you want a fast, predictable sale, a traditional iBuyer is still a better option.
- Leverage the equity in your current home to buy a new home
- Avoid paying two mortgages at once
- Sell directly to Orchard if you can’t sell on the open market
- Only available to customers in four states
- High fees — 6% service fee plus closing costs and repayment or old mortgage
Orchard is currently available to home buyers and sellers in 11 metro areas across five states: CO, GA, NC, TX, and VA.
Should you sell your home to Zillow Offers?
|✅ Pros||❌ Cons|
|Get a free, no-obligation cash offer||Expensive repair fees can limit profits|
|Flexible closing dates (7-90 days)||Low offers may be thousands below fair market value|
|No repairs or upgrades||Little opportunity to negotiate the sale price or repairs|
|No need to prepare, list, or show your home to prospective buyers||Not all homes and locations are eligible|
Like other iBuyers, Zillow Offers promises a fast, stress-free home selling experience. You can get an initial cash offer in 48 hours and close within 7 days, with no need to repair, list, or market your property.
However, Zillow Offers’ fees and repair costs can add up fast. You might end up earning thousands less from your sale than you would receive by listing your home on the open market.
Before selling your home to Zillow Offers, we recommend speaking with a real estate agent who knows how quickly homes are selling near you — and how much you might earn from your sale. Our friends at Clever Real Estate have a nationwide network of top-rated partner agents who work for pre-negotiated rates of just $3,000 or 1% in listing fees.
Opendoor, Reviewed and Explained: In our in-depth review of Opendoor, you’ll learn how the iBuying process works — and whether Opendoor might be a good choice for your home sale.
What Companies Offer the Lowest Real Estate Commission Fees?: With so many low commission real estate companies on the market, there’s no reason to pay the traditional 6% commission. Learn how to get the best price without sacrificing on service.
Read This Before You List Your FSBO on Zillow: Thinking of attempting a DIY sale on Zillow? We researched how it works and the biggest risks you’ll face.