It only took eight days for a petition to stop Zillow’s Instant Offer to get over sixteen thousand signatures. The petition, which is online, was spearheaded by Greg Hague. The article https://www.linkedin.com/pulse/battle-save-real-estate-greg-hague details the plan to save the drowning real estate business. Before jumping into the petition, here is a summary of Zillow; a real estate research company that dominates articles on sites like www.businessobserverfl.com/.
The company is an online home search portal. Though the firm has not shown any profit as of yet, forecasts predict a more than One Billion Dollar revenue this year. The portal has already acquired established businesses like www.RealEstate.com. The Instant Offers program by the company gives property owners cash offers upon selling. Investors buy the house with deep pockets, flipped and then sold for a huge profit. The program is available in two cities right now:
• Orlando, Florida
• Las Vegas, Nevada
There are no real estate middlemen involved in the program. As a service charge, a homeowner who uses the Instant Offer program, needs to pay almost eight to nine percent of the total. This is far more than the commission of a real estate’s complete service.
The creator of Real Estate Mavericks circulated the viral petition to save the real estate industry and to protect homeowners. The petition’s website has received over one hundred thousand views already. It has a simple goal. The National Association of Realtors (NAR) should advise the Zillow to put a stop to their new program because it is a blatant robbery of property owners who are clueless about the value of their homes. The equity that should land in the pockets of the owners flows to institutional investors.
Homeowners rarely have an ear to the ground. This means they are unaware of the local real estate market. Therefore, under pressure, they sell homes to investors’ only prices that are way below the market level. The sellers do not realize that they are funding the thousands of dollars into the pockets of profit-hungry investors. Investors aim to increase profits and stock value. They do not care about the impact on the sellers. The end goal of the petition, once it reaches a hundred thousand signatures, is to insist NAR put a stop to the Zillow program.
The web portal has seen constant support and help from real estate company. It was built on the listing provided by realtors for free. Therefore, it is a shock to see the platform create a program that takes the very bread and butter from the sector. It not only hurts the professionals of the real estate company by reducing the number of clients and potential clients but also violates American homeowners. The owners would have earned more by selling their homes if they would not have opted for the instant offer program.
The petition is meant to ask the National Association of Realtors to take a very public stand. If Zillow fails to discontinue the program even after warnings, realtors all over the country will begin to use rival portals for the listings.