Zillow 360 - Bundling (or Bungling) Selling and Buying
After Zillow Homes Failed...
In recent headlines Zillow was in the news because on their site they now advertise that some sellers visiting Zillow will be able to request an Opendoor offer. Shockingly, it has also been in the news recently that the FTC alleges that Opendoor told consumers they could make more money selling to Opendoor than on the traditional open market selling through a real estate agent in the MLS. In fact, the FTC fined Opendoor $62M for deceptive practices.
This in itself would make me feel a little unnerved about doing business with Zillow as to a quick sell of my home!
Now Zillow creates Zillow 360
This is being marketed as a way to bundle your buying, selling, and mortgage financing together. They say it will save time and stress along with thousands! What's interesting is that only Zillow paid advertisers (real estate agents) will get these buyer contacts or leads from Zillow. Not necessarily the best, most experienced agents, but the one who is paying Zillow to be in this program. Same with the selling or listing side, but what they are offering on your listing is "1.5% back on the sale price."
At face value, for some the idea of bunding services may sounds great, except for the fine print at the bottom of their web page entitled,
How will the Zillow 360 benefits impact my taxes?
So you will get a 1099 and have to claim that rebate off your listing commission in taxes. That means on a $400,000 sale, you've just got another $6,000 you have to claim as income!
Why not do this a better way? See my listing page for Sellers. If you list with me, and I assist you in buying a home, instead of a 5-6% commission, I lower the commission rate to 4%. That means simply that you keep more equity in your hands at closing. No playing games and sending out tax forms for you to pay taxes on your own equity like you would with Zillow 360. You simply pay a lower commission rate and that translates in your keeping more of your equity at the closing table. Also, not waiting like with Zillow 360 to get a check within four weeks after closing to get paid!
If you're looking to buy and sell a home, contact me! I'd love to be of help in a straightforward way that has earned me hundreds of reviews across Zillow and Google over the years! It would be my pleasure to be of service!