The Advantages of Selling Your House for Cash
Selling a house can often be a long and complex…November 29, 2023
The recently launched Zillow homes for sale by owner model allows homeowners to list a property on their site to appeal to millions of potential buyers who use Zillow to search for their next home. This Zillow by owner listing product is limited in that the listing does not syndicate anywhere else. On the surface, Zillow seems to be offering a product that enables sellers to represent themselves, but underneath it all, it’s more of a proverbial mousetrap. Zillow FSBO business model places real estate agents in front of listings so that they can earn revenue. The For Sale By Owner market is growing rapidly. Zillow lets For Sale By Owners list their homes to advertise real estate agents to them. How do I post on Zillow for sale by owner, and should I?
Many who post for sale by owner on Zillow are inundated with telephone calls from agents who want to represent them as a seller’s agent. As a result, houses for sale on Zillow by owner services have become troublesome for sellers because they become frustrated with the real estate agent who keeps calling.
These real estate agents use Zillow Sell by Owner as a lead generation service. Zillow enables this behavior to remain relevant among real estate agents so that Zillow can sell advertising space to them. This is why Zillow for sale by owner fees are kept so low – because they’re charging agents to have access to them.
Real estate agents think they have the advantage over Zillow houses for sale by owner because they place home listings on the Multiple Listing Service, where properties syndicate to hundreds of websites. However, home sellers have become more competent because they have more options today than a few years ago. Zillow for sale isn’t the only place where they can list without an agent.
When homeowners consider how to list a house on Zillow, what they’re really trying to do is:
Zillow’s priority is to place a form in front of buyers to contact real estate agents who will then contact the homeowner. This is why the cost to list on Zillow is free – because they’re in the game of “selling information.” However, as you scroll down a Zillow For Sale By Owner listing, you’ll notice there’s a text that says ‘Property Owner’ and a phone number next to it. If you click on ‘Property Owner,’ a box will show a form to contact the property owner. From there, homebuyers can fill in a form and know that their buyer’s information will be sent directly to Zillow For Sale By Owners. Consider that once a homebuyer’s information is sent, Zillow For Sale By Owners will receive the homebuyer’s information. The homebuyer’s data will be sent to Zillow or their agents, who may contact homebuyers to sell their services.
There are flat fee brokerages that will offer real estate agent services for a fixed price. There are modern home flipping companies called iBuyers that will buy from sellers in 30 days or less for cash. These iBuyers charge more than real estate agents in commissions by swapping commissions for finance fees at around 10% of the home sale price. Listing services will charge a $300 fee or less for listing on the Multiple Listing Service. Sometimes these listing services mislead sellers by saying it’s commission-free but charge an upfront fee and a one-time fee on the seller’s closing statement.
The process is just as simple as other third-party services when it comes down to how to list on Zillow. You’ll need:
Next time you consider Zillow list for sale by owner, compare your options with free online services that can get you on the MLS for free too.
Zillow is an online database of homes for sale, showing properties’ listing history and details about the neighborhood. Not to be mistaken with being on MLS! They have their own online platform that doesn’t connect to the central system. They are famous for their widely inaccurate “Zestimates,” which allows homeowners to ballpark what their house could sell for.
You can list for free on Zillow by uploading a description of your property as well as some photos and videos. However, complaints are on the rise of homeowners being bombarded with calls from agents who aren’t looking to buy – but instead have personal gain and take over the listing.
Zillow has been a popular choice for many, mainly because of its Mainstream Marketing. It’s easy to list your home for free, and you see their advertising everywhere. Once a homeowner realizes it’s not their only free option to post them home online, third-party services like Richr become a much better option so you can actually list on MLS for free.
Selling your home using a free MLS service is a great idea – however, using Zillow alone may cause some frustrations, especially when paired with their other services. First of all, you’re not going on MLS. You’re going on Zillow’s own website and possibly missing some key Realtors noticing your home. When it comes to Zillow Offers, the company’s own Chief Marketing Officer admitted the seller could lose 10-15% of the sale price.
Zillow does not charge for listing as a For Sale By Owner. They provide you with a free listing that does not go on the primary MLS. Consider that because Zillow is not registered as a broker with NAR, Zillow must show MLS Listings as a priority over Zillow For Sale By Owner listings. This means that when buyers go to Zillow to search for homes For Sale By Owner, listings will not be in the primary search column.
While it may not cost any dollars or cents to list your home on Zillow, you’ll be paying the price of giving up your privacy. Zillow’s business model is to place real estate agents in front of listings so that they can earn revenue. Many For Sale By Owners who list on Zillow are inundated with telephone calls from agents who want to represent them as a seller’s agent. As a result, Zillow’s For Sale By Owner service has become troublesome for sellers because they become frustrated with the real estate agent who keeps calling.
Realtors don’t like Zillow because of two significant reasons. The first is that homeowners can now list on the MLS for free, opting not to pay a commission to a listing agent or even denying buyers’ agents commission when putting in an offer. The second is that homeowners will often argue the sale price to the inflated Zestimate, making it harder to have an honest conversation about the potential sale price. Realtors may also miss great properties for their buyers as any FSBO listings won’t show up on MLS.
Working with Zillow or with a Realtor has pros and cons, but the primary indicator of what could be better for you is if you have some extra time to dedicate to the sale of your home so you can keep the commission. Many online resources allow you to list your home for free if you can clear your schedule during the sale process.
Your first rental listing on Zillow is free until it expires. After that, you’re looking at $9.99 per week or a flat fee of $30 for up to 90 days.
Zillow doesn’t charge a commission when you list your home on their database, but because their business model is catered to placing real estate agents in front of listings, they’ll try to introduce you to a buyer working with one of their broker partners.
It’s easy, fast and simple. List your home for free with Richr with Richr’s happiness guarantee.
You can’t list all your rentals on Zillow for free, but your first listing is complimentary until it expires. After that, you’ll have to pay a fee.
Zillow helps sellers that need to sell fast and be able to depend on it to close smoothly. However, sellers aren’t always getting what their home is really worth. They can lose 10-15% of the sale price if they go this route.
Zillow offers may not be as competitive as other iBuyers in the area, and the service fee goes above what a listing agent would charge you in commission. With Zillow’s 9.5-22% cut, you may as well go to an old-fashioned brokerage that will spend marketing dollars for you.
Realtors don’t like Zillow. Realtors are bashing Zillow “Zestimates” and are frustrated by the misinformation it causes for buyers. No longer just a property listing website, agents pay astronomical fees for leads that are often dead-end FSBO.
Redfin services are often higher than Zillow’s because of the various tools that they use for accurate estimates and property information.
Listing your property on Zillow as an FSBO is not enough to get your home sold. You’ll still need to put some dollars behind your marketing and have a title settlement service that takes care of the transaction details.
You can list your house on Zillow without an agent – but they’ll definitely contact you. As a lead from Zillow, agents will receive your information, pestering with calls to convince you they could sell your home for more.
Zillow doesn’t charge homeowners a penny unless they’re putting up their second rental. However, they push your listing in front of brokers looking for you to cover their commission when representing a buyer.
Redfin and Zillow offer similar services that may be more beneficial depending on the seller’s need. If you’re looking for total freedom and concierge service, Richr is the best way to go.
You can fall victim to a scam on Zillow, just like any other rental property. The most common scam is “long-distance” landlords requesting you to wire the money for a home they haven’t shown you in person.
There are better free services than Zillow. Richr offers sellers the opportunity to list for free on MLS, getting exposed to over 750 major websites (Zillow included). You also have the option to pay a nominal fee for title and settlement services.
Zillow will buy your house through a program called Zillow Offers. However, their own Chief of Marketing admitted it could come at 10-15% less than market value.
Does Zillow have all listings? Zillow listings don’t include all MLS memberships, so you won’t always see everything available. Just like you can “edit my Zillow listing,” you can also update your information whenever you need to with free MLS services like Richr.
Zillow buys homes to flip them for a higher profit while benefiting sellers who don’t have time for the unknown. It’s often best for sellers that need cash and closing fast, often not having the time to market their homes themselves properly.
According to Forbes and even Zillow themselves, they are never 100% accurate, and this could even cost you the quick sale of your home.
Technically, Zillow and Redfin do not have the same listings. The short answer is that Redfin is a real estate brokerage, whereas Zillow is a third-party database. Redfin uses data from its membership, whereas Zillow relies on data-sharing agreements from MLS systems.
Zillow estimates are only as robust as the data behind them. They can fluctuate between too high or low depending on if it’s a home in a central metropolitan area or if it’s in an old neighborhood with little turnover.
Zillow instant offers are not ideal for property owners looking to get the most money from their home sale. They are typically accepted by sellers who are in a rush and would rather lose 10-15% of the sale price than wait for the next offer.
It is free to sell your home on Zillow, but there could be costs associated when it comes to who you sell to. Other free services protect your privacy without pushing it to agents that will expect a commission.
It can take anywhere from 24-48 hours for your property to start showing up on Zillow’s property website after it’s activated.
Richr is the first company to offer free Multiple Listing Service access to For Sale By Owners. For Sale By Owners gain the same access that real estate agents have but without relying on a real estate agent or paying a fee to use the service. Richr wants to empower home sellers to sell their homes independently without using a real estate agent. When home sellers list through Richr, they don’t get hassled as they may with Zillow’s For Sale By Owner service because real estate agents are not allowed to poach other real estate agents’ listings. Home sellers that list with Richr sell their homes within eight weeks on average. For Sale By Owners also get to keep more equity because Richr does not charge hefty commission or finance fees that real estate agents charge. If you’re thinking of taking control of your listing and would like to keep more equity, then go to Richr.com to list your home. As a bonus, you also get access to our For Sale By Owner guide that offers the latest tips to For Sale By Owners to sell their homes faster and with ease.
Richr’s new service also enables For Sale By Owners to list for free on the MLS, pay $499 at closing, and include their title settlement services. This new way of selling homes is the future of home selling where all For Sale by Owner’s needs are met from listing through to closing.
If you’re looking to buy or sell a house and would like to discuss your option, Richr can help you!
Our fully licensed Concierge Team is here to answer questions and provide free, objective advice on how to get the best outcome with your sale or purchase.