❗ Zillow Offers is no longer buying houses
On November 2, 2021, Zillow announced that Zillow Offers would be permanently shut down. But there are other ways to get fast cash offers on your home — including selling to an iBuyer or cash investor. Requesting a cash offer is free, and you're under no obligation to accept it.
To save time, we recommend starting with an offers marketplace like Clever Offers, which helps you find the highest cash offers for your home. The platform is free to sellers, and there's no obligation to move forward.
Why did Zillow Offers shut down?
Zillow decided to shutter its iBuying program largely due to a flawed business model.
In an announcement to stakeholders, Zillow CEO Richard Barton said the proprietary algorithm the company developed to buy and sell houses caused it to overbid, and Zillow ended up with thousands of homes worth less than what they paid for them. On an earnings call, Barton said the company was "unintentionally purchasing homes at higher prices."
From the beginning of July 2021 through September 2021, Zillow Offers lost more than $420 million, which is approximately as much as the company earned overall through the 12 months prior to July.
What's the best alternative to Zillow Offers?
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Clever Offers helps you find and compare offers from leading cash buyers in your area — all with a proven track record of closed deals and high customer satisfaction.
Because Clever's network includes local/national investors, iBuyers, and agents with experience listing homes as is, you get a range of offers to choose from — including alternative deal types that deliver a higher payout.
The 5-star rated company gets top marks for helping you make an informed decision without roping you into a specific deal. See our full Clever Offers review.
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Opendoor is for home sellers who want to skip the hassles of a traditional home sale — without sacrificing too much on price.
You can get an initial offer within 24–48 hours, choose your closing date, and skip repairs and showings. The company also pays much closer to market value than traditional house flippers.
Opendoor does charge a 5% service fee, and some customers complain that final offers are lower than initial estimates. See our full Opendoor review.
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Homeward is a solid choice if you want the benefits of a fast cash offer without sacrificing your home equity — or need to unlock the equity in your current house to buy a new one.
While most cash buyers aim to buy low in order to sell high, Homeward gives you up to 89% of your home value upfront and lets you keep the additional upside on your property by listing it on the market after you accept its cash offer.
In exchange for this convenience, Homeward charges service fees of up to 7% and deducts the costs of both its original offer and any expenses associated with maintaining your home while it's being sold.
The company maintains an above-average customer rating. However, its complicated service and fee structure have led to some customer complaints. See our full Homeward review.
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As an iBuyer, Offerpad stands out for its perks, including free local moves and a 3-day grace period to wrap up your move after closing.
You can choose between listing with an agent and getting a cash advance for home prep/repairs or taking a competitive cash offer with flexible closing dates, ranging from 8–90 days.
If you accept a cash offer, be prepared for an 8% service fee, plus variable repair costs — which customers report can substantially reduce your final offer. See our full Offerpad review.
What was Zillow Offers?
In 2018, Zillow launched its iBuying service, then called Zillow Instant Offers. Until it shut down in November 2021, Zillow Offers provided 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 charged an average service fee of 7.5%.[1]
Zillow once had the second-highest transaction volume among iBuyers, with a total of more than 6,000 transactions in 2019.
However, Zillow Offers wasn’t available in as many locations as other iBuyers — it only operated in 25 cities across the U.S. — and its variable fee structure could drain sellers' profits. Compared to its competitors, it was also surprisingly difficult to find Zillow Offers reviews from customers.
Unlike other major iBuyers, Zillow Offers was intended to help its existing network of premier agents close more deals. For example, if a premier agent's client wanted a quick, predictable sale, the agent may have recommended Zillow Offers. Then, sellers paid Zillow Offers' fees, plus their agents' commission (usually another 3%).
In this case, Zillow could 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 was not great for home sellers. In total, Zillow Offers fees could soar as high as 22% of your sale price!
Zillow Offers vs. Zestimate
The Zestimate is Zillow’s proprietary home value estimation tool. In February 2021, Zillow began using the Zestimate as a starting point for their cash offer through Zillow Offers. But the final offer was likely to be lower than the Zestimate after taxes, fees, and information from the home inspection was taken into account.
The Zestimate uses public information, MLS listings, and user-submitted data to place a value on a home. Zillow cautions that it’s not an appraisal, nor should it be used in place of a physical appraisal.
The Zestimate tool isn’t perfect. The company says[2] that the nationwide median error rate for the Zestimate is 1.94% for on-market properties, but this varies greatly by location. For off-market properties, the median error rate jumps to 7.06%.
Incomplete or flawed data will lead to an inaccurate Zestimate. This is why talking to a local real estate agent with an in-depth knowledge of your home and the area is the best way to find an accurate market value for your home.
How did Zillow Offers work?
If you wanted to sell your home to Zillow Offers, the process was very simple:
- Apply online. To start, Zillow Offers collected basic information, such as your address and the condition of your home, through an online form. Data from Zillow transactions suggests Zillow only purchased around 2% of the homes submitted for offers.
- Review the initial offer. If your home was eligible, your home's Zestimate served as the initial cash offer in most markets. (Keep in mind: This was not the final offer, which would likely have been thousands less after a home inspection.)
- Complete an inspection. If you decided to move forward, Zillow Offers scheduled an on-site home inspection to identify any necessary home repairs.
- Review the revised offer. Zillow Offers presented a final cash offer that included deductions for repairs. At this point, you could accept and sign a purchase agreement, or decline with no penalty or obligation.
- Close the deal. Once you signed the sale contract, you could schedule a closing date in as little as seven days, or up to 90 days if you need more time.
Buying a home from Zillow Offers
If you were browsing homes on Zillow and saw the "Owned by Zillow" icon, it meant the home was purchased and repaired by Zillow Offers and was then up for resale.
In fact, if you wanted a move-in ready home with a flexible closing date, you could have shopped Zillow-owned homes exclusively instead of sifting through all of the listings on Zillow.
You (or your real estate agent) could have submitted an offer and heard back as quickly as within 48 hours. Plus, Zillow-owned homes were vacant — so you didn’t have to worry about coordinating the move-in timing with an occupant.
If you ended up purchasing a Zillow-owned home, Zillow paid your agent's commission when the deal closed.
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 ranged 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 had bought 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% |
It was impossible to know exactly how much you would have paid in fees until you received a line-by-line breakdown after Zillow Offers completed 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 1.5%, 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.
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 was Zillow Offers available?
Zillow Offers was 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 |
» Thinking about using an iBuyer? Here are the best iBuyer companies ranked
Zillow Offers reviews and complaints
Most online reviews focus on Zillow's website, app, or agents — so it was hard to find Zillow Offers reviews. This made it difficult to determine exactly how customers felt about the service.
Positive Zillow Offers reviews did mention the service's fast, hassle-free alternative to listing on the open market.
However, other Zillow Offers reviews came 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.
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.
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, we suggested that it often made 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!
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.
More Zillow Offers alternatives
Even though Zillow Offers is no longer available, there are plenty of alternatives to explore.
Zillow Offers vs. other iBuyers
Opendoor and Offerpad are current leading iBuyers that are available in more locations and charge lower fees than Zillow Offers did.
Or, if you want to compare offers from multiple sources — including iBuyers and investors — a free service like Clever Offers may be a better choice.
Zillow Offers vs. selling with a real estate agent
Though Zillow Offers delivered speed and convenience, sellers usually ended up compromising on price.
According to Zillow, the difference between its cash offers and what sellers could earn on the open market was "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 was true, Zillow Offers' fees were substantially higher than what you would have paid with an agent who listed your home on the open market.
The total cost of selling to Zillow Offers could have been as much as 9–22% — compared to the 7–10% average cost of listing with a realtor.
If you sell with a low commission brokerage, you could save even more. Sellers who list with Clever pay just 1.5% in listing fees — keeping thousands of dollars in their pocket without compromising on service.
» MORE: With Clever, you can sell fast, for top-dollar AND save thousands on commission!
Should I sell my home to a company like Zillow Offers?
| ✅ Pros | ❌ Cons |
| Free, zero-obligation offer, with no penalty if you decline | Fees start at 5%, plus repair costs — while offers tend to be below market value |
| 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, they rarely pay as much as you'd make on the open market.
If you want to sell your house fast, we recommend comparing multiple offers from legitimate cash buyers and asking a realtor or two for a comparative market analysis. That way, you can determine whether the difference in sale price is worth the convenience of a cash sale.
Compare offers from top local investors and iBuyers — plus get an expert realtor's opinion on what your house is really worth. Get offers and realtor proposals sent straight to your inbox — with no added fees or pressure to move forward.
Get Cash OffersFAQs
Was Zillow Offers legitimate?
Now shut down, Zillow Offers was a legitimate service that purchased homes for cash. However, some Zillow Offers reviews warned of high fees and repair costs that could eat into sellers' profits. Read Zillow Offers reviews from customers.
Was selling your house to Zillow worth it?
Zillow Offers (now shut down) made near-instant cash offers on homes — but its maximum service fees were as much as 22%. Compare Zillow Offers to other companies that buy houses for cash.
Did 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 have netted more on the open market. Keep in mind that if Zillow agreed to purchase a home, it's because the company believed it could resell the house for more.
Could you negotiate with Zillow Offers?
When Zillow Offers was operational, Zillow claimed it made its best offer upfront to simplify the process and speed things up for sellers. Because of this, you couldn’t really negotiate since Zillow's offer factored in the costs it anticipated having to pay to resell the home.
Did Zillow buy homes at market value?
In some cases, Zillow paid close to market value for homes — but there's no simple answer to this question. To establish a price for your home, Zillow evaluated 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 was a Zillow cash offer?
A Zillow cash offer was an offer from Zillow to purchase your home. The offer took into account Zillow's service fee, selling costs, and repairs that Zillow had to make before reselling the home. Zillow cash offers were valid for five days from the date of your initial request.
