Zillow Offers Reviews and Fees: Should You Sell to Zillow?

Andrew Whytock

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Andrew Whytock

October 18th, 2021
Updated October 18th, 2021

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What is Zillow Offers? | How it works for sellers | How it works for buyers | Fees | Locations | Zillow Offers reviews from customers | Alternatives | Should I sell to Zillow Offers?

Zillow Offers logo

🚨 Note: As of October 18, 2021, Zillow Offers has temporarily stopped purchasing houses. Read our guide to the top ibuyer companies to discover more options near you.

🔑 Key takeaways

  • Zillow Offers can present home sellers with a cash offer in just two days.
  • The service fee for selling a home to Zillow Offers averages 7.5%, but can be as high as 9%. There are also selling costs of up to 6%.
  • Zillow Offers can close in as little as seven days, depending on the seller's timeline. That's much faster than the national average closing time of 30-45 days.
  • It's difficult to find Zillow Offers reviews from customers, so we encourage sellers to compare the service to alternatives that offer similar convenience for fewer fees.

Zillow Offers is the iBuying division of popular online real estate marketplace Zillow.

An iBuyer is a company that makes quick cash offers on houses, then resells them on the open market. Zillow Offers currently has the second highest transaction volume, with a total of more than 6,000 transactions in 2019. It's currently available in only 25 cities across the U.S., but has plans to expand.

Despite its popularity, Zillow Offers isn't available in as many locations as other iBuyers — and its potentially high fees can drain sellers' profits. Compared to its competitors, it's also surprisingly difficult to find Zillow Offers reviews from customers.

To figure out if Zillow Offers is the best choice for you, we recommend talking with a real estate agent who can offer insight into pricing trends in your market. An agent can let you know how much your home could sell for — without Zillow fees.

If you're ready to learn more, Clever can connect you with full-service agents who know how quickly homes are selling in your market and how to get the best price possible on your sale. Best of all, if you list with Clever you'll pay just $3,000 or 1% in listing fees!

» MORE: Find a great local agent with Clever and save thousands on commission!

Or, keep reading to learn more about Zillow Offers' reviews, fees, and how the process works for both buyers and sellers!

What is Zillow Offers?

Zillow Offers, at a glance
💰 Zillow fees
1.5-9% (7.5% on average)
📍 Locations
25 metro areas across AZ, CA, CO, FL, GA, MN, NV, NC, OH, OR, TN, and TX
⏱️ Time to close
Sellers: 7-90 days | Buyers: Negotiable
☎️ Contact
Phone: 1 (833) 963-3377 | Email: zosupport@zillowgroup.com

In 2018, Zillow launched its iBuying service, then called Zillow Instant Offers. Today, Zillow Offers provides a fast, hassle-free option for eligible home sellers by providing a cash offer in just two days.

In exchange for this convenience, Zillow Offers charges a service fee that range from 1.5-9% — a wide range, with an average service fee of 7.5%. The service fee covers Zillow's carrying costs when reselling homes.

Unlike other major iBuyers, Zillow Offers is intended to help its existing network of premier agents close more deals. For example, if a premier agent's client wants a quick, predictable sale, the agent may recommend Zillow Offers. Then, sellers pay Zillow Offers' fees, plus their agents' commission (usually another 3%).

In this case, Zillow can collect fees from:

  • The premier agent (for marketing)
  • The home seller (for commissions and service fees)
  • The home buyer when it resells the house

Put simply, Zillow Offers is not great for home sellers. In total, Zillow Offers fees can soar as high as 22% of your sale price!

Looking for Zillow Offers reviews from customers? Find them here!

✍️ Editor's take

Zillow Offers can be a quick, convenient option for home sellers, but its service fees are nearly double competitors' rates. If there are multiple iBuyers in your area, we recommend comparing offers — or hiring a qualified real estate agent who can make sure you get the best price for your home.

How does Zillow Offers work?

If you want to sell your home to Zillow Offers, the process is very simple:

  1. Apply online. To start, Zillow Offers collects basic information, such as your address and the condition of your home, through an online form. Data from Zillow transactions suggests Zillow only purchases around 2% of the homes that are submitted for offers.
  2. Review the initial offer. If your home is eligible, your home's Zestimate will serve as the initial cash offer in most markets. (Keep in mind: This is not the final offer, which will likely be thousands less after inspection, and Zestimates can be thousands of dollars off.)
  3. Complete an inspection. If you decide to move forward, Zillow Offers will schedule an on-site home inspection to identify any necessary home repairs.
  4. Review the revised offer. Zillow Offers presents a final cash offer that includes deductions for repairs. At this point, you can accept and sign a purchase agreement, or decline with no penalty or obligation.
  5. Close the deal. Once you sign the sale contract, you can schedule a closing date in as little as seven days, or up to 90 days if you need more time.

Quick tip

You don't need a real estate agent to request a cash offer from Zillow. In fact, we recommend against it. If you've already signed a listing agreement, you'll still have to pay your agent's commission — usually around 3% of the sale price — plus Zillow's fees. That's a lot of money to pay someone who's essentially submitting an online form!

Buying a home from Zillow Offers

Picture of listings owned by Zillow

If you're browsing homes on Zillow, look out for the "Owned by Zillow" icon. It means the home was purchased and repaired by Zillow Offers and is now up for resale.

In fact, if you want a move-in ready home with a flexible closing date, you can shop Zillow-owned homes exclusively instead of sifting through all of the listings on Zillow.

You (or your real estate agent) can submit an offer and hear back as quickly as 48 hours. Plus, Zillow-owned homes are vacant — so you won't have to worry about coordinating the move-in timing with an occupant.

If you end up purchasing a Zillow-owned home, Zillow will pay your agent's commission when the deal closes.

Quick tip

If you want to buy a Zillow-owned home, ask for a short closing time! The faster Zillow can resell the home, the lower its carrying costs will be — so a quick closing could help your offer stand out.

Additional Zillow services

Zillow has partner lenders in every state, so you can apply for a mortgage through Zillow Home Loans and get prequalified in just a few minutes.

While interest rates may vary based on the amount of your loan, one benefit of using Zillow Home Loans is that you'll get a $1,500 lender credit when you buy a Zillow-owned home.

Further, Zillow Closing Service provides title and escrow services during a real estate transaction, which can speed up and simplify the process if you're doing a transaction with Zillow.

While this service streamlines the transaction, it's also an added cost that nets Zillow more money during a sale, so it may be worthwhile for customers to shop around and compare prices.

Zillow Offers fees

In total, Zillow Offers fees usually range from 9-22% of your home's purchase price. That's substantially higher than competing iBuyers' fees — for example, Opendoor fees range from 5-10%.

Here's a full breakdown of Zillow fees if the company buys your home:

Fee
Percent of purchase price
🤝 Service charge
1.5-9%*
🛠️ Repairs
1-2%
💰 Closing costs
1-2%
💵 Realtor commission (if applicable)
3%
🏡 Resale costs
6%
Total
9.5-22%
*The average seller pays 7.5%

It's impossible to know exactly how much you'll pay until you receive a line-by-line breakdown after Zillow Offers completes your home inspection.

By comparison, sellers who list with Clever can work with a top-notch agent at a fraction of the traditional cost. For just $3,000 or 1% (depending on your home value), a Clever agent will provide full-service support so you can reach your selling goals — whether that's a fast sale, the best possible price, or both.

💰 Incredible savings, none of the hidden fees

If you're weighing your options, Clever can help! Our fully-licensed concierge team can help you decide if working with an agent is the right choice for your sale.

✅ Connect with great local agents for free, with zero obligation
✅ Interview agents about their strategies for selling fast without compromising on price
✅ Save thousands on commission when your home sells

Enter your zip code to find a top local agent today!

Where is Zillow Offers available?

Zillow Offers is available in 25 cities across 12 states.

State
Metro areas
Arizona
Phoenix, Tucson
California
Los Angeles, Riverside, Sacramento, San Diego
Colorado
Colorado Springs, Denver, Fort Collins
Florida
Jacksonville, Miami, Orlando, Tampa
Georgia
Atlanta
Minnesota
Minneapolis-St. Paul
Nevada
Las Vegas
North Carolina
Charlotte, Raleigh
Ohio
Cincinnati
Oregon
Portland
Tennessee
Nashville
Texas
Austin, Dallas-Fort Worth, Houston, San Antonio

Though Zillow Offers plans to expand in the future, it does not currently purchase homes outside of these locations.

» Not available near you? Find the best Zillow Offers alternatives.

Zillow Offers reviews by customers

Most online reviews focus on Zillow's website, app, or agents — so it's hard to find Zillow Offers reviews by recent customers. This makes it difficult to determine exactly how customers feel about the service.

Positive Zillow Offers reviews do mention the service's fast, hassle-free alternative to listing on the open market.

Positive review of Zillow Offers

However, other Zillow Offers reviews come from sellers who felt they'd been duped by a bait-and-switch.

For example, one customer's cash offer was slashed by $23,000 after Zillow Offers completed the inspection.

Negative Zillow Offers review - lowball offer

Another customer had the same experience according to this Zillow Offers complaint. Because of their experience, they ended up selling with a real estate agent.

Negative Zillow Offers reviews - unfair repair costs

You can also browse customer reviews and testimonials on Zillow Offers' site — but since these are curated by Zillow, we can't consider them to be truly objective.

Between potentially high fees and Zillow Offers reviews that document inaccurate price estimates, it often makes more sense to work with a traditional real estate agent. If you don't have to sell immediately or live in an area where homes are selling fast, Clever can help you save thousands on commission while getting top-quality service!

👋 Clever can help you sell fast and for top dollar!

Before selling your home to an iBuyer like Zillow Offers, it pays to talk to a real estate agent about your options.

Our licensed concierge team can connect you with top-rated agents who know how fast homes are selling in your area — and how to find a buyer quickly while earning the most money from your sale.

Zillow Offers alternatives

If Zillow Offers isn't available in your area — or if you just want to avoid potentially sky-high fees — there are plenty of alternatives to explore.

For example, Opendoor is another leading iBuyer that's available in more locations and charges lower fees than Zillow Offers. You can also sell to a traditional real estate agent.

Or, if you don't need to sell immediately and want to save on fees, a discount company like Clever may be a better choice. You'll get the support of a full-service agent and likely sell for a higher price than you could with an iBuyer.

Zillow Offers vs. selling with a real estate agent

Though Zillow Offers delivers speed and convenience, sellers usually end up compromising on price.

According to Zillow, the difference between its cash offers and what sellers could earn on the open market is "typically less than 1%." Another study from iBuyer expert Mike DelPrete found that Opendoor and Zillow Offers purchased homes for 1.4% less than market value.

However, even if this holds true, Zillow Offers' fees are substantially higher than what you'd pay with an agent who lists your home on the open market.

The total cost of selling to Zillow Offers can cost as much as 9-22% — compared to the 7-10% average cost of listing with a realtor.

If you sell with a discount company, you could save even more. Sellers who list with Clever pay just $3,000 or 1% in listing fees — keeping thousands of dollars in their pocket without compromising on service.


Zillow Offers
Traditional realtor
Listing with Clever
💰 Fees to sell
7.5% avg. service fee + up to 3% commission
3% buyer's agent commission + 3% listing fees
3% buyer's agent commission + $3,000 or 1% listing fees
🏡 Sale price
Fair market value at most
What the highest bidder is willing to pay
What the highest bidder is willing to pay
📅 Closing date
Flexible
Negotiated with buyer
Negotiated with buyer

» MORE: With Clever, you can sell fast, for top-dollar, AND save thousands on commission!

Opendoor vs. Zillow Offers

Along with our deep dive into Zillow Offers, we also reviewed Opendoor — the largest iBuyer in the business.

Both companies buy homes for cash, but there are some important differences to consider.

📍 Locations
Opendoor is more widely available, serving more than 40 locations
💰 Fees
Opendoor fees cost 5.5-10% of a home's sale price — far less than Zillow Offers
🔎 Specialty
Opendoor's main focus is on iBuying — unlike Zillow, which uses iBuying as one of many strategies for turning a profit
📊 Volume
In 2019, Opendoor purchased 3x more homes than Zillow Offers

If you're trying to choose between Zillow Offers and Opendoor, it's important to consider how the fees, locations, and customer reviews compare.

Below is a quick breakdown of some of the two companies' key services and benefits.


Opendoor
Zillow Offers
No showings, listings, open houses
Pick your own closing date
Cancel the sale at any time with no penalty
Offer valid for 5 days
Free offer within 24 hours
X (48 hours)
Home trade-in program
X
Partnerships with major homebuilders
X
14-day "late checkout" option
X

» READ: What To Know About Opendoor (Our 2021 Review)

Other iBuyers vs. Zillow Offers

Zillow Offers and Opendoor aren't the only iBuyers on the market. Zillow's fees are among the highest in comparison to competitors, but they do offer perks that other iBuyers don't--like no cancellation penalties. Find out how Zillow Offers stacks up against other iBuyers.

Offerpad

Offerpad

Full Review

Service Fee

6-10%

Closing Date Window

10-90 days

Average Rating

1.8/5 (57 reviews)

Editor's Take
Pros & Cons
Locations
Reviews
Contact

Offerpad promises the certainty of a cash offer and a fast closing on a date you choose. But its restrictive purchase agreement, hidden cancellation fee, and negative online reviews suggest it's riskier than other iBuyers.

Pros

  • Generous closing window compared to competitors
  • Late checkout option gives sellers up to 3 days to move out after closing
  • Access additional services, such as free local moves within 50 miles


Cons

  • You'll have to sign a binding contract before knowing the final offer price
  • You might face a 1% cancellation fee
  • Offerpad reserves the right to back out at any time

Offerpad is currently purchasing homes in 14 locations.

  • AZ: Phoenix, Tucson
  • AL: Birmingham
  • FL: Jacksonville, Orlando, Tampa
  • GA: Atlanta
  • NV: Las Vegas
  • NC: Charlotte (+ neighboring parts of SC), Raleigh
  • TX: Austin, Dallas-Fort Worth, Houston, San Antonio

As of February 15, 2021, Offerpad's average customer rating is 1.8/5 based on 57 reviews.

  • Website: www.offerpad.com
  • Phone: 844-388-4539
  • Email (Sellers): info@offerpad.com
  • Email (Buyers): buyers@offerpad.com
SHOW MORE

RedfinNow

RedfinNow

Full Review

Service Fee

6-12%

Closing Date Window

10-30 days

Average Rating

Not available

Editor's Take
Pros & Cons
Locations
Reviews
Contact

Compared to its competitors, RedfinNow handles a relatively small volume of iBuyer sales. However, RedfinNow shines in several niches, thanks to its willingness to accept older homes and its availability in a wide range of California cities.

Pros

  • Expanded presence in cities across California, including several not served by other iBuyers
  • Large and trusted corporate brand
  • Older homes (built after 1930) are eligible in select cities


Cons

  • Relatively expensive services fees (up to 12% of the offer price)
  • Relatively limited flexibility on closing window, compared to competitors
  • Verified customer reviews are unavailable

RedfinNow is currently purchasing homes in 14 locations.

  • AZ: Phoenix
  • CA: Inland Empire, Los Angeles, Orange County, Palm Springs, Sacramento, San Diego, San Francisco
  • CO: Denver
  • TX: Austin, Dallas, Houston, San Antonio
  • WA: Seattle

As of February 15, 2021, RedfinNow does not have any verified customer reviews on reputable third-party review sites.

SHOW MORE

Service Fee

1.25%

Closing Date Window

Varies

Average Rating

4.8/5 (710 reviews)

Editor's Take
Pros & Cons
Locations
Reviews
Contact

Knock allows customers to purchase a new home before selling their old one. Unlike typical iBuyers, you'll sell on the open market with a traditional real estate agent. Knock will cover your old mortgage until your home sells — but you'll still eventually have to settle up, and costs can add up fast if your home sits on the market.

Pros

  • You'll sell on the open market, potentially receiving offers above fair market value
  • $25,000 advance for home repairs before selling
  • Compared to competitors, Knock accepts older homes (built after 1930)


Cons

  • Fees can add up quickly if your home sits on the market
  • You'll have multiple points of contact rather than one dedicated agent
  • Buyers will need to be proactive and independent in their home search

Knock is currently operating in 15 locations.

  • AZ: Phoenix
  • CO: Denver
  • FL: Fort Lauderdale, Jacksonville, Miami, Orlando, Tampa, West Palm Beach
  • GA: Atlanta
  • NC: Charlotte, Raleigh-Durham
  • TX: Austin, Dallas-Fort Worth, Houston, San Antonio

As of February 15, 2021, Knock's average customer rating is 4.8/5 based on 710 reviews.

SHOW MORE

Service Fee

6%

Closing Date Window

14-60 days

Average Rating

4.6/5 (97 reviews)

Editor's Take
Pros & Cons
Locations
Reviews
Contact

Orchard is a home trade-in service that allows you to purchase a new home by getting access to your current home's equity. You can then list your old home on the market with an Orchard listing agent.

If you need to move quickly, but still want to get top dollar for your home, Orchard is worth considering. However, Orchard only accepts newer homes compared to its competitors.

Pros

  • You'll have a generous 7-day window to consider Orchard's offer
  • Use Orchard's Offer Boost program to make a cash offer on a new home
  • If your home doesn't sell in 120 days, you can accept Orchard's guaranteed cash offer


Cons

  • Homes must be relatively new, compared to competitors (built after 1972 vs. 1930-1960)
  • Orchard's cash offers will likely be much lower than what you'd be able to sell for on the open market

Orchard is currently operating in nine locations.

  • CO: Colorado Springs, Denver
  • GA: Atlanta
  • NC: Charlotte, Raleigh-Durham
  • TX: Austin, Dallas-Fort Worth, Houston, San Antonio

As of February 15, 2021, Orchard's average customer rating is 4.6/5 based on 97 reviews.

SHOW MORE

Should I sell my home to Zillow Offers?

Pros
Cons
Free, zero-obligation offer, with no penalty if you decline
Fees can be as high as 22% depending on the market and whether you have an agent
Flexible closing date (7-90 day window)
Little to no negotiation on sale price or repairs
Personalized customer service from a dedicated Zillow Offers Advisor
Homes that need significant repairs aren't eligible
Zillow-owned homes are move-in ready
Only available in 25 markets

iBuyers offer a fast, convenient solution for sellers who want an instant cash offer and a flexible closing timeline.

However, Zillow Offers lags behind competitors in both its availability in nationwide markets and its unusually high fees. There also aren't many Zillow Offers reviews from customers, making it difficult to gauge people's experiences with the service.

Depending on where you live, homes may also be selling fast on the open market. It's always best to speak with a few real estate agents to make sure you're getting the best possible solution for your goals — whether that's selling fast, earning the most cash from your sale, or both!

👋 Next steps: Talk to an expert

If you're weighing your options for buying or selling a house, Clever can help!

Our fully-licensed concierge team is standing by to answer questions and provide free, objective advice on getting the best outcome with your sale or purchase.

Ready to get started?

Give us a call at 1-833-2-CLEVER or enter your info below. Our concierge team will be in touch shortly to help.

Remember, this service is 100% free and there’s never any obligation.

FAQs

How much are Zillow fees?

Zillow purchases homes through its iBuying service, Zillow Offers. Eligible sellers can receive a cash offer within 48 hours — but be aware that Zillow Offers fees can be as much as 9-22%.For FSBO sellers, it’s free to list your home on Zillow — but you’ll still need to pay a flat-fee MLS company to get maximum visibility. Because of that, working with a low commission agent may be a better choice for some sellers.

Is Zillow Offers legitimate?

Yes, Zillow Offers is a legitimate service that purchases homes for cash. However,  some Zillow Offers reviews warn of high fees and repair costs that can eat into sellers' profits. Read Zillow Offers reviews from customers.

How does Zillow Offers work?

If you want to sell your home to Zillow Offers, the process is very simple. You can submit your information online to get an initial cash offer within 48 hours, then schedule an inspection. After the inspection, Zillow will adjust its offer to account for repairs. Learn more about how Zillow Offers works.

Is selling your house to Zillow worth it?

Zillow Offers makes near-instant cash offers on homes — but its maximum service fees can be as much as 22%. Compare Zillow Offers to other companies that buy houses for cash.

Does Zillow give good offers?

A study from Zillow found that sellers who rejected a Zillow Offer only sold for 0.09% more on the open market. However, given Zillow's hefty service fees, sellers may net more on the open market. Keep in mind that if Zillow agrees to purchase your home, it's because they believe they can resell it for more.

Can you negotiate with Zillow Offers?

Zillow claims they make their best offer upfront to simplify the process and speed things up for sellers. Because of this, you can't really negotiate since Zillow's offer factors in the costs that they anticipate having to pay to resell the home.

Does Zillow buy homes at market value?

In some cases, Zillow may pay close to market value for your home — but there's no simple answer to this question. To establish a price for your home, Zillow evaluates a variety of factors, such as:

  • The estimated time to resell

  • The cost of repairs to the home

  • Market conditions

  • Potential for profit from resale

  • Closing costs

  • Holding costs

What is a Zillow cash offer?

A Zillow cash offer is an offer from Zillow to purchase your home. The offer takes into account Zillow's service fee, selling costs, and repairs that Zillow will have to make before reselling the home. Zillow cash offers are valid for five days from the date of your initial request.

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