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Online real estate company Zillow, has announced that it will no longer be running a program in which it bought, renovated and resold homes itself. Zillow operated an iBuying service called Zillow Offers.

An iBuyer, which is short for “instant buyer,” is a real estate company that buys and sells homes through technology. These companies are able to instantly calculate the AVM to make an offer on a home, which at times can only take minutes, or less. And many times the property is sight unseen.

Zillow Offers had recently been bogged down by a backlog of renovations, which saw closings delayed due to labor and supply shortages. On Tuesday, an official document from the company disclosed that it lost about $304 million in the third quarter from the iBuyer program. The company had been purchasing homes at higher prices than it now expects to sell them at with a total of 9,680 purchased homes. Out of their purchases, they only sold 3,032, the company told investors.

Jerusalem Demsas of Verge, says “This news made a splash in the world of iBuying, a relatively new industry in which companies like Zillow, Redfin, Offerpad, and Opendoor allow homeowners to avoid the tedious process of listing and staging homes by selling directly (and quickly) to them.”

Although Zillow has stopped buying homes, Redfin, Offerpad and Opendoor are still purchasing. For home sellers, there are some pro’s to accepting these iBuyer offers.

Home seller Pros of accepting an offer from an iBuyer

Real Estate Agent, Matt Dubas of Dubas Property Group says, “When you’re selling your home there are some pros to selling to an iBuyer for sure.” He continues, “Unlike a traditional sale, selling your home to an iBuyer promises a speedy, simpler, and convenient process. It takes away the hassle of preparing your home for sale, thus you don’t need to stress about staging your home or boosting your curb appeal. You also don’t need to have any showings and wait for potential buyers to send an offer.”

For some home sellers, the possibility of skipping any disruption caused by preparing their home or making it available for showings can be a huge plus and time saver. Dubas says, “iBuyers often offer quick and flexible closing dates. You have the ability to close at your convenience or when it works best for you, meaning, you can close as quickly as 10 days, or as long as 90 days.”

So what’s next for the real estate market?

Before Zillow shut down its iBuying arm, it was looking to offload 7,000 homes to an unnamed buyer — or buyers — for $2.8 billion, Bloomberg reported. 

A source at Business Insider continues, “If Zillow does sell the homes to investors, that could exacerbate a lack of supply in the market. Institutional buyers have already been prolific in their home purchases over the past year.”

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