It is all over the news and internet, Zillow is canceling hundreds of iBuyer contracts to purchase homes. Homeowners are left in a financial bind after many based their new purchases on the premise that Zillow would be purchasing their current home. Many homeowners delayed the closing on their current home to coincide with their new construction home closing. If it doesn’t happen before January 31, 2022, hundreds of sellers will be out of luck and could possibly have two mortgages or lose the deposit on their new build. Zillow is offering return of deposits plus a nominal incentive to sign a termination agreement.
If it looks too good, it probably is. Zillow was overpaying for homes and then realized the market was softening up. Homeowners will now have to decide to relist with a conventional Realtor, most likely getting a lower, but more market friendly price, or cancel their new purchase. Some scorned sellers are considering a class action claim, but that could tie up their homes longer than they want to remain in them.
What was so attractive about using Zillow as an iBuyer? The offer came quickly, for a high price, there was no need to hold open houses, keep the house clutter free, no staging and the seller could time the closing to their own schedule. Now, those that postponed their closing until after January 31, 2022, are in a pickle.
So, what is the next step? Owners that still want to sell should contact a Realtor®. A professional Realtor® will price your home to sell in the current market, offer suggestions on how to declutter and stage your home, and market your home for the quickest sale and highest price. A Realtor® will negotiate with buyers for the price and terms that meet your needs resulting in the most positive outcome for all involved.
To sell your home now or to buy a new one (or both) contact me – a licensed Realtor®.