Homeowners who want to sell their existing home and buy a newly built home can now do so all in one transaction and wait as long as eight months to move out, thanks to a partnership between Zillow and nearly a dozen homebuilders.
Zillow announced this week that it is partnering with homebuilders Ashton Woods, Brookfield Residential, Fischer Homes, H&H Homes, Hartford Homes, Kerley Family Homes, M/I Homes, Mattamy Homes, Oakwood Homes, PulteGroup, and Shea Homes on a program where homeowners who want a newly built home can sell their existing home to Zillow but stay in the house for as long as eight months while their new home is being built.
“When home shoppers buy a new construction home from one of Zillow's homebuilder partners, they will have the opportunity to sell their existing home directly to Zillow, on their own timeline, through Zillow Offers,” the company said in a release.
One of the advantages of the program, according to Zillow, is an extended closing period – between seven days and eight months – which could prevent buyers from having to move twice or carry two mortgages simultaneously. Buyers would also not have to worry about the traditional home sales process of showings, open houses, staging, and the like, features touted by all iBuyers.
“One of the last things buyers want to deal with when searching for a new home is the stress and hassle that comes along with selling their existing home,” said Zillow Brand President Jeremy Wacksman. “With Zillow Offers, we are allowing homeowners a quick and efficient way to sell their current home and buy a brand new house – all on their timetable – so they can focus on what really matters: getting settled into their dream home.”
According to Zillow, the company’s homebuilder partnerships will be “prominently marketed on all new construction home listings on Zillow and in all homebuilder showrooms.”
And while Zillow Offers, Zillow’s iBuying program, is currently available in Phoenix; Las Vegas; Atlanta; Denver; Charlotte, North Carolina; Raleigh, North Carolina; Houston; Riverside, California; Dallas; Minneapolis; Orlando, Florida; Portland, Oregon; Colorado Springs, Colorado; Fort Collins, Colorado; Nashville, Tennessee; Miami; and San Diego; the homebuilder program is only available in certain markets.
“We are excited to be one of the first builders to partner with Zillow Offers and we've already seen a great response from home shoppers looking for a more convenient way to sell their existing home,” said Shea Homes Arizona Vice President of Sales and Marketing, Ken Peterson. “An offer from Zillow enables our buyers to confidently move forward with their purchase of a new Shea home. They also love the convenience of choosing a closing date, so they don't have to move into a rental while their new home is being built. The ability to offer this program to our customers is just one more way we can help them take the next step on their new home journey.”
Zillow’s move to partner with homebuilders is not a first among iBuyers. In fact, it only deepens the competition between Zillow and Opendoor, which already has a homebuilder program. Opendoor’s program, which initially launched with Lennar before expanding to all homebuilders, enables buyers to extend their closing date by as much as nine months while they wait for their new home.