\n<\/div><\/div>\n<\/div>\n<\/div>\n

By Catie Wegman<\/div><\/div>\n

Zillow\u2019s shutdown of \u201cZillow Offers\u201d quickly added some new listings to the market but buyers\u2019 agents say they\u2019re frustrated by slow response times and other issues.<\/span><\/span><\/p>\n<\/div>\n

PORT ST. LUCIE, Fla. \u2013 Treasure Coast residents eyeing the real estate market likely have spent many hours searching the online marketplace Zillow. But did you know the Seattle-based company has a stake in the game too? Zillow bought thousands of properties amid the nationwide real estate boom and is still trying to sell them. Many listings are cheaper than comparable homes \u2013 but there\u2019s a catch.<\/span><\/span><\/p>\n

Working with Zillow has been difficult, Treasure Coast residents and real estate agents told TCPalm, citing issues with communications, a lengthy contracting process and much-needed renovations not being addressed.<\/span><\/span><\/p>\n

\u201cI\u2019ve showed many Zillow-owned homes and (the company) essentially Band-Aided the property to make it presentable,\u201d said Suzanne Healey, with RE\/MAX of Stuart. \u201cA global conglomerate cannot do a local real estate agents\u2019 job. They tried.\u201d<\/span><\/span><\/p>\n

Cheaper Zillow listings entice buyers<\/span><\/span><\/h3>\n
Over 60 Zillow-owned homes have been listed for sale on the Treasure Coast since June 1, according to market data. Ten were still available as of Feb. 2. A majority of these properties were listed at or slightly below the company\u2019s \u201cZestimate,\u201d meaning the home\u2019s predicted market value. That\u2019s a rare sight, as median, single-family home sale prices reached record highs last year.<\/span><\/span><\/p>\n
\u201cI think that (Zillow) was purchasing high, and because they ended up being wrong about the way the market was going to pan out, they\u2019re just dumping properties now,\u201d said Tracey MacLeod, with Premier Realty Group based in Stuart.<\/span><\/span><\/p>\n
Affordability is what initially enticed Jupiter native Natasha Biggie and her husband, Stephen, to tour two Zillow-owned homes in Port St. Lucie. The couple made an offer on both houses, but Zillow declined one offer with no explanation and didn\u2019t respond to the other offer until after it had closed with another buyer, she said.<\/span><\/span><\/p>\n
Of the Zillow-owned homes still for sale on the Treasure Coast, only one had an asking price higher than its Zillow market value: a three-bedroom home on Southwest Coral Tree Circle, listed at $599,000 \u2013 $200 more expensive than its $589,800 Zestimate. Still, the St. Lucie County property is less expensive compared to the two other three-bedroom homes Zillow listed for sale in the same Vitalia at Tradition neighborhood, listed at $669,900 and $699,500.<\/span><\/span><\/p>\n
Zillow is selling some homes for significantly under the area\u2019s average sale price. For example, the average single-family sale price in the 34894 ZIP code during the fourth quarter last year was $362,006, according to market data. Half the Zillow-owned properties in the area were up to 32% cheaper \u2013 at $260,000, $312,648 and $331,214.<\/span><\/span><\/p>\n
\u201cWe would\u2019ve been willing to increase our offer or see what we needed to do to make that deal happen \u2026 and we just got no response,\u201d said Biggie, 32, who has two daughters ages 5 and 7. \u201cThe complete lack of communication was just amazing.\u201d<\/span><\/span><\/p>\n
Realtor: Zillow is \u2018frustrating\u2019<\/span><\/span><\/h3>\n
Working with Zillow was a challenge, according to MacLeod and at least five other Treasure Coast Realtors whom TCPalm interviewed for this story. Each property they showed had varying renovation needs, ranging from chipped paint to exposed electrical wires.<\/span><\/span><\/p>\n
But the biggest issue was the lack of communication between Zillow agents, which prolonged repairs and the contracting process, Realtors said.<\/span><\/span><\/p>\n
The only Zillow-owned home MacLeod closed on was a St. Lucie West condominium that was in \u201cworking condition,\u201d but had no washer, dryer or refrigerator, she said. It also took multiple days for Zillow to respond to her client\u2019s offer, MacLeod said. Sellers typically respond in 24 hours or less.<\/span><\/span><\/p>\n
\u201cIn this market, you don\u2019t have time to be waiting around,\u201d she said.<\/span><\/span><\/p>\n
Stephanie Zaqqout, a Realtor with NextHome Treasure Coast, had a similar experience. She has shown at least six Zillow-owned properties, but has closed on only one: a Jensen Beach single-family home, she said. <\/span><\/span><\/p>\n
Exposed wires and leaks under the sink found during the inspection were promptly addressed, but only because those issues would have affected the buyers\u2019 ability to get homeowners insurance, Zaqqout said. Other renovations have been minimal, she said, adding that one Zillow employee told her the company does not fix any issues unless it\u2019s detrimental to the sale.<\/span><\/span><\/p>\n
Biggie described the two Zillow-owned homes she toured as decent but \u201cneeded work,\u201d adding the infrastructure was dated and there was water damage in one property.<\/span><\/span><\/p>\n
\u201cIt wasn\u2019t exactly like we were unaware of how much work the Zillow-owned home needed,\u201d Biggie said. \u201cNo complaints on that front, but we definitely would\u2019ve had to bump our budget up.\u201d<\/span><\/span><\/p>\n
Zillow didn\u2019t have dedicated agents working directly with buyers throughout the process, Zaqqout said, so communication was unorganized. Her client was set to close on Jan. 14, but Zillow never sent her the paperwork, which delayed the closing by five days, she said. It took about six weeks to close.<\/span><\/span><\/p>\n
\u201cNo communication. No nothing,\u201d Zaqqout said. \u201cAs an agent, it\u2019s very frustrating \u2026 How do you tell your buyer that\u2019s ready to get the keys that you don\u2019t even know if we\u2019re closing? \u201cI\u2019m glad they\u2019re getting out of the home-owning and selling business,\u201d she said. \u201cThis market is stressful to begin with, but this just heightened it very much.\u201d<\/span><\/span><\/p>\n
Zillow-owned homes<\/span><\/span><\/h3>\n
Zillow purchased homes through its Zillow Offers business, a house-flipping operation offering instant cash. Its website advertised those homes to buyers as \u201cmove-in ready.\u201d<\/span><\/span><\/p>\n
However, the company purchased overpriced homes and then faced delays in renovations and cost increases due to labor and supply constraints. Not seeing a return on its investment, Zillow announced in its Nov. 2 shareholder letter that it was stopping its home-buying program. Zillow cited a roughly $304 million loss in the third quarter because the company had to list these properties at a price that would exceed its own market-value estimates, the letter says. The company also laid off 25% of its employees.<\/span><\/span><\/p>\n
Realtors\u2019 problems with Zillow could be the result of the program ending, according to a prepared statement a spokesperson provided TCPalm.<\/span><\/span><\/p>\n
\u201cWe have been experiencing some issues related to heavy offer volume due to high buyer demand in the housing market and a labor- and supply-constrained market complicating our operational capacity,\u201d the statement says.<\/span><\/span><\/p>\n
Zillow was selling about 8,000 houses nationwide when it decided to end the program.<\/span><\/span><\/p>\n
TCPalm doesn\u2019t know exactly how many homes Zillow purchased on the Treasure Coast. The Zillow spokesperson said he was unable to provide that data, and the area\u2019s metropolitan service area data was not readily available.<\/span><\/span><\/p>\n
Though Realtors didn\u2019t advise against buyers purchasing Zillow-owned homes, all the ones TCPalm interviewed suggested having an experienced agent to stay on top of the sale.<\/span><\/span><\/p>\n
\u201cThe inventory is so low right now that it\u2019s kind of like you have to take your shot,\u201d Zaqqout said. \u201cWe don\u2019t love (Zillow), but we have to play in the sandbox with them.\u201d<\/span><\/span><\/p>\n
\u00a9 2022 Journal Media Group. Catie Wegman is TCPalm\u2019s community and real estate reporter.<\/span><\/span><\/p>\n<\/div><\/div>\n
Go to Source<\/a>
\nAuthor: kerrys<\/p>\n","protected":false},"excerpt":{"rendered":"
By Catie Wegman Zillow\u2019s shutdown of \u201cZillow Offers\u201d quickly added some new listings to the market but buyers\u2019 agents say they\u2019re frustrated by slow response times and other issues. PORT ST. LUCIE, Fla. \u2013 Treasure Coast residents eyeing the real estate market likely have spent many hours searching the online marketplace Zillow. But did you know the Seattle-based company has a stake in the game too? Zillow bought thousands of properties amid the nationwide real estate boom and is still trying to sell them. Many listings are cheaper than comparable homes \u2013 but there\u2019s a catch. Working with Zillow has been difficult, Treasure Coast residents and real estate agents told TCPalm, citing issues with communications, a lengthy contracting process and much-needed renovations not being addressed. \u201cI\u2019ve showed many Zillow-owned homes and (the company) essentially Band-Aided the property to make it presentable,\u201d said Suzanne Healey, with RE\/MAX of Stuart. \u201cA global conglomerate cannot do a local real estate agents\u2019 job. They tried.\u201d Cheaper Zillow listings entice buyers Over 60 Zillow-owned homes have been listed for sale on the Treasure Coast since June 1, according to market data. Ten were still available as of Feb. 2. A majority of these properties were listed at or slightly below the company\u2019s \u201cZestimate,\u201d meaning the home\u2019s predicted market value. That\u2019s a rare sight, as median, single-family home sale prices reached record highs last year. \u201cI think that (Zillow) was purchasing high, and because they ended up being wrong about the way the market was going to pan out, they\u2019re just dumping properties now,\u201d said Tracey MacLeod, with Premier Realty Group based in Stuart. Affordability is what initially enticed Jupiter native Natasha Biggie and her husband, Stephen, to tour two Zillow-owned homes in Port St. Lucie. The couple made an offer on both houses, but Zillow declined one offer with no explanation and didn\u2019t respond to the other offer until after it had closed with another buyer, she said. Of the Zillow-owned homes still for sale on the Treasure Coast, only one had an asking price higher than its Zillow market value: a three-bedroom home on Southwest Coral Tree Circle, listed at $599,000 \u2013 $200 more expensive than its $589,800 Zestimate. Still, the St. Lucie County property is less expensive compared to the two other three-bedroom homes Zillow listed for sale in the same Vitalia at Tradition neighborhood, listed at $669,900 and $699,500. Zillow is selling some homes for significantly under the area\u2019s average sale price. For example, the average single-family sale price in the 34894 ZIP code during the fourth quarter last year was $362,006, according to market data. Half the Zillow-owned properties in the area were up to 32% cheaper \u2013 at $260,000, $312,648 and $331,214. \u201cWe would\u2019ve been willing to increase our offer or see what we needed to do to make that deal happen \u2026 and we just got no response,\u201d said Biggie, 32, who has two daughters ages 5 and 7. \u201cThe complete lack of communication was just amazing.\u201d Realtor: Zillow is \u2018frustrating\u2019 Working with Zillow was a challenge, according to MacLeod and at least five other Treasure Coast Realtors whom TCPalm interviewed for this story. Each property they showed had varying renovation needs, ranging from chipped paint to exposed electrical wires. But the biggest issue was the lack of communication between Zillow agents, which prolonged repairs and the contracting process, Realtors said. The only Zillow-owned home MacLeod closed on was a St. Lucie West condominium that was in \u201cworking condition,\u201d but had no washer, dryer or refrigerator, she said. It also took multiple days for Zillow to respond to her client\u2019s offer, MacLeod said. Sellers typically respond in 24 hours or less. \u201cIn this market, you don\u2019t have time to be waiting around,\u201d she said. Stephanie Zaqqout, a Realtor with NextHome Treasure Coast, had a similar experience. She has shown at least six Zillow-owned properties, but has closed on only one: a Jensen Beach single-family home, she said. Exposed wires and leaks under the sink found during the inspection were promptly addressed, but only because those issues would have affected the buyers\u2019 ability to get homeowners insurance, Zaqqout said. Other renovations have been minimal, she said, adding that one Zillow employee told her the company does not fix any issues unless it\u2019s detrimental to the sale. Biggie described the two Zillow-owned homes she toured as decent but \u201cneeded work,\u201d adding the infrastructure was dated and there was water damage in one property. \u201cIt wasn\u2019t exactly like we were unaware of how much work the Zillow-owned home needed,\u201d Biggie said. \u201cNo complaints on that front, but we definitely would\u2019ve had to bump our budget up.\u201d Zillow didn\u2019t have dedicated agents working directly with buyers throughout the process, Zaqqout said, so communication was unorganized. Her client was set to close on Jan. 14, but Zillow never sent her the paperwork, which delayed the closing by five days, she said. It took about six weeks to close. \u201cNo communication. No nothing,\u201d Zaqqout said. \u201cAs an agent, it\u2019s very frustrating \u2026 How do you tell your buyer that\u2019s ready to get the keys that you don\u2019t even know if we\u2019re closing? \u201cI\u2019m glad they\u2019re getting out of the home-owning and selling business,\u201d she said. \u201cThis market is stressful to begin with, but this just heightened it very much.\u201d Zillow-owned homes Zillow purchased homes through its Zillow Offers business, a house-flipping operation offering instant cash. Its website advertised those homes to buyers as \u201cmove-in ready.\u201d However, the company purchased overpriced homes and then faced delays in renovations and cost increases due to labor and supply constraints. Not seeing a return on its investment, Zillow announced in its Nov. 2 shareholder letter that it was stopping its home-buying program. Zillow cited a roughly $304 million loss in the third quarter because the company had to list these properties at a price that would exceed its own market-value estimates, the letter says. The company also laid off 25% of its employees. Realtors\u2019 problems with Zillow could be<\/p>\n","protected":false},"author":4,"featured_media":6149,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/6148"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=6148"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/6148\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/6149"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=6148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=6148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=6148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}