Offerpad and Zillow Stopped Buying Houses, What Now?

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Following restaurants and retails stores, now real estate major real estate companies are announcing that they will suspend operations amid the Coronavirus outbreak. To date, nearly half of all U.S. states have put in place severe lockdown restrictions limiting gathering and social contact by shutting down non-mandatory businesses and operations. By and large the industry most heavily affected by the lockdown measures has been the service industry for restaurants and retail. However, now the real estate industry is beginning to close its doors as well. That leaves many asking where to go now to sell their house.

 

Real estate companies suspend buying during Corona outbreak

After other companies such as Redfin and Open Door, both Offerpad and Zillow declared that they would suspend their iBuying programs during the pandemic to comply with new state laws. In a statement released on Monday, Zillow announced, “To comply with California’s ‘Stay at Home’ order, we are temporarily pausing purchasing homes through Zillow Offers in the state while the order is in effect. […] Given the concerns for public safety and rapid developments by governments that restrict local real estate activities, we determined it was prudent to pause our home buying to preserve our capital.” This move from the real estate company comes after months of expanding its iBuying program ‘Zillow Offers,’ a move the company sought after to further increase its scope in the market. Despite the news that Zillow would be temporarily ending its service, Zillow stock actually increased 8% the day of the announcement. 

 

 

Offer Pad and Zillow Stopped Buying Houses, What Now?

 

 

Last week, Redfin Corp. also announced that it would suspend its iBuying program, Redfin Now. According to The Real Deal, the program accounted for 42% of the brokerages Q4 revenues. In recent months companies like Open Door, Redfin, and Zillow all bet big on the iBuying market, and now are forced to bring those services to a grinding halt. Cortney Read, Offerpad’s director of communications said in a statement regarding the companies decision, “Due to health concerns for customers and employees, the uncertainty of the economic impact, and to ensure we are complying with proper local municipalities, protocols and CDC requirements related to COVID-19, we are not currently providing offers to new sellers.” 

 

Even with the moratorium on buying, these real estate companies are still in a bind as they retain all the homes they’ve already purchased which are now that much harder to sell as more and more American face the prospect on unemployment. “If you own one house in Phoenix and the market goes down, 5%, you’re out a couple thousand dollars. The problem is, if you own 3,000 houses and the markets seize up everywhere at once you’re potentially in a lot of pain,” said Mike DelPrete, an independent analyst who tracks the iBuying market.

 

What is iBuying for Real Estate?

The concept of iBuying is relatively new and a way to ease the strenuous process of selling your home. Trying to sell a house is a long and complicated process that takes time and lots of patience. iBuying takes the stress and hassle out of the equation and allows people to get instant cash-offers on their home and affords them the luxury to sell their house on their own time frame. Rather than go through finding an agent, listing your home, making repairs, and dealing with negotiations and closing fees, iBuying provides sellers with a fast and easy way to sell their homes. Simply contact an iBuyer and within no time you’ll receive a fair competitive cash offer for your property. The concept of iBuying is to make selling your house fast and easy. According to the CEO of Open Door, “The goal of an iBuyer is to help you sell your home in a simpler, more convenient, and less stressful way.”

 

 

homes in arizona

 

 

Unlike the traditional way of selling your home, iBuying gives you total control of when you sell. On average, it can take 60 days to complete a sale. With iBuying you can sell your house in as little as 10 days. Selling your home with an iBuyer, you’ll receive your offer within 48 hours. From there, it’s up to you to accept or not. Once you begin the process of selling to an iBuyer, it’s entirely up to you how quickly the sale moves. With an instant guaranteed offer, you also don’t have to worry about hidden fees, secret closing costs, or the sale falling through. What you see is what you get. In many instances you can sell you house as is, without having to spend time and energy doing repairs and fixing your home’s curb appeal. For those looking to sell their house in a fast and efficient way, this is certainly a great path to take.

 

Where to go to sell your house during the Coronavirus

The traditional market as has begun to take a hit as the effects of the Coronavirus take hold. Both the Washington DC and Atlanta real estate markets as well as many others have taken dips in recent weeks. Additionally, Caliber Home Loans CEO Sanjiv Das recently wrote for Market Watch that the Coronavirus outbreak could severely threaten the stability of the housing market. Certainly, just as was the case in 2008 and the years leading up to it, a crisis doesn’t negate the need of people to move. Even with companies like Redfin and Open Door all suspending their iBuying programs, there are still several companies that are continuing to buy houses. Real estate never sleeps and even during times like these, people will still may need to sell their house fast. With the market slowing down and iBuyers putting a halt on their operations, you may be left wondering where to go to sell your house.

 

Fortunately, several companies based in Arizona such as National Cash Offer, Offer Key, and Offer Home, are all still actively buying houses in Arizona and elsewhere. If you need to sell your house, there are still several options. Each of these three companies operating in various locations will still provide you an offer on your home. If you need to move for any reason, you can still rely on these real estate companies to sell your house. 

 

Offer Key currently operates in Arizona, Nevada, and California. National Cash Offer has service areas in Arizona, California, Florida, Nevada, North Carolina, Ohio, Texas, and Washington. Offer Home also is currently buying houses in Arizona, California, Nevada, Oregon, Ohio, Texas, and Washington.

 

Each company has years of experience buying and selling houses and can more than help you out if you need to sell your house. With so many headlines of similar companies ending their house buying programs, National Cash Offer, Offer Key, and Offer Home are still going strong and have kept their doors open for business during this time. 

 

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Joshua Cruz

Joshua Cruz

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