Zillow Offers comes to Miami, plans push into condos

by Andrew Morrell

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Zillow’s recently introduced iBuyer service is officially open for business in South Florida. As of August 19, homeowners in the Miami and Fort Lauderdale area can use Zillow Offers to sell their home in what the company bills as a “stress-free” and “seamless experience.” 

“I’m excited to welcome Zillow and their innovative Zillow Offers program to South Florida today,” Fort Lauderdale Mayor Dean Trantalis said in a news release. “I’m proud that innovative, consumer-oriented companies like Zillow continue to come to the area, and help our economy thrive.”

The Miami metro is the 16th U.S. market where Zillow Offers is available to homeowners. The company hopes to grow that number to 26 next year. Since launching in April 2018, Zillow says at least 170,000 homeowners have requested a take-it-or-leave-it offer on their house.

Miami could also become the first market where Zillow Offers will be eligible to condo owners, rather than just single-family homes. Although that option isn’t currently available, Zillow said in the press release that eligibility will expand to include condo units “as the program grows.”

As in other markets, Zillow facilitates each transaction with the help of a local real estate broker. In Miami, Laurie Finkelstein Reader Real Estate will represent Zillow in each deal.

Zillow is taking a big bet on the iBuyer model with each individual transaction. So far, the company has been able to double the revenue it earns as part of Zillow Offers to nearly $250 million, according to the company’s most recent financial statements. However, this segment of the firm reported a net loss of $56.5 million for the quarter, and said it lost an average of almost $3,000 per home sold after accounting for interest charges.

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