Anyone familiar with Zillow home buying service?

[Steve Viegas]

I have a rental with tenants who are about to come to the end of their lease. I am think about selling and possibly doing a 1031 exchange.

Has anyone here used Zillow's home buying service? Any idea what I might expect? Other than lots of spam...

[porsche4life]

Huge fees. All of those services make their money when they buy the house. They are going to turn around and sell it within 60days. They are going to hit you with fees and inspections and everything they can to make it up on the buy side so they aren’t as dependent on the market going up when they sell.

[look 171]

Why do you want to go through them? Cheaper? I think you have to identify 1031 exchange on the sale if I remember correctly.

[Steve Viegas]

I don't know that I want to go through them as much as they seem to make it easy. Not even sure I want to sell to be honest.

My tenant's lease is coming due, and I went to zillow for a data point regarding rents. They had an estimate on the value of the house, and it seems higher than I expected, so I was curious as to what they would actually put forth in an offer.

Everything is priced so high these days, real estate, stocks, crypto currency, gold...everything. Not sure I could move the money to a better place right now, so not sure I would sell, but it seems interesting to me.

[drcoastline]

Originally Posted by look 171

Why do you want to go through them? Cheaper? I think you have to identify 1031 exchange on the sale if I remember correctly.

If I recall proceeds need to go directly into escrow. Seller can not take possession of the funds. They then have ninety days to identify and close. Also as I recall seller need not buy another piece of real-estate it can be any asset of equal or greater value.

[id10t]

If you really want to ask 'em I'd create a whole new email account, and ask. If you decide to follow through, re-start using your "real" email.

[Dantilla]

Originally Posted by Steve Viegas

... I went to zillow for a data point regarding rents. They had an estimate on the value of the house, and it seems higher than I expected, ....

Any real estate professional, realtor, appraiser, mortgage broker, whatever, will roll their eyes when one mentions Zillow.

Their computer algorithms are notoriously inaccurate.
Compare with the other computer based estimates, and they will all be quite different from one another.

[berettafan]

Zillow's slogan should be 'For Entertainment Purposes Only'

[look 171]

If you want trouble free, sell through an agent. Sign papers, go home have a beer and wait. Money will be in your account in 30 days.

[Steve Viegas]

Well, the tenant just asked to re-up for two years. That works for me. I will not have to sell.

I was a commercial real estate broker for about 10 years. I certainly do believe in letting professionals do the work.

This property has been under management since I purchased it 16 years ago. It has been vacant for less than 30 days during that time. That likely means I am pricing it under market but I haven't had to worry about it either. I am OK with that.

[look 171]

Off topic question for you Steve. Are commercial rentals as slow as people are saying up in the Bay Area due to the damage from Covid?