[ad_1]
Homebuyers in Los Angeles may soon be competing with one of the country's largest online real estate databases.
Zillow announced Thursday its intention to expand its growing Zillow Offers program to six new cities, including Los Angeles.
Through the program, homeowners can sell properties directly to Zillow, rather than entering the traditional real estate market. The company pays money, then repairs the property and lists it quickly for sale, using its own website to advertise the house.
Zillow Offers is one of the many instant buyer platforms launched in recent years by technology companies like Redfin and Opendoor. The concept is similar to a traditional home rollover, but on a scale that few individual investors could match.
According to a Zillow press release, the company receives "every two minutes" cash offer requests under the program launched last year and available until now in nine cities. Zillow also announced earlier this year its intention to buy and sell 5,000 homes a month in the cities where the program is available.
Los Angeles is the largest real estate market in which the company has announced its intention to establish itself so far.
Dana Cuff, professor of architecture and urban planning at UCLA, tells Curbed that the program could be of interest to sellers who want to get by with what could be a lowball offer from the company in exchange for a less stressful sales process.
But Cuff argues that the flipping process can artificially inflate the value of homes as investors risk lowering costs when they repair properties.
"We already have a housing crisis," she says. "It will not improve things. He considers housing only as an investment. "
Matt Kreamer, spokesperson for Zillow, does not agree.
"If anything makes the market more stable," he writes in an email. The program, he explains, "allows people to sell (and buy) more easily, and creates a more reliable balance."
According to Kreamer, homes sold through Zillow offers will also be "turnkey", which will make them more attractive to potential buyers.
Cuff says the Los Angeles area is already flooded with speculators doing this job and those in the home market might be interested in buying from a local seller.
"I think buyers have to be wary of the circumstances, because it's a big company that manages them," she says. "Everything is remote. There is no human there.
[ad_2]
Source link