Zillow planning expansion of its home buying business in Southwest

Lending

It’s been just over a year since Zillow expanded its business from simply facilitating the home sale to actually buying houses itself.

Since then, Zillow expanded its iBuyer business and is now operating in nine markets with plans to continue expanding.

In fact, Zillow has big plans for its home buying business, recently revealing that its current goal is to be able to buy 5,000 homes per month within as little as three years.

To get there, Zillow will have to fortify and expand its home buying operations, and this week, the online real estate giant took a step in that direction.

Earlier this week, Zillow announced that it is opening what it calls a “Southwest hub” for its iBuyer business (called Zillow Offers) in Arizona.

Zillow Offers allows homeowners to request a no-obligation cash offer from Zillow to buy their home. If they accept it, Zillow directly buys a seller’s house, prepares it for showings, and lists it for sale.

Consumers selling or buying a house to/from Zillow can also get a mortgage from Zillow, thanks to Zillow’s newly launched mortgage operation, Zillow Home Loans.

Phoenix was one of the first two markets where Zillow initially launched Zillow Offers last year.

And now, one year later, Zillow plans to expand its footprint in the Phoenix area substantially.

According to Zillow, it is opening a 25,000-square-foot office in Scottsdale, which will eventually house nearly 300 employees who will focus on direct buying and selling.

“Since we launched a year ago, we have received more than 80,000 requests for offers, and have helped thousands of home sellers move into their new home on their own timeline, without the hassle and uncertainty of a traditional home sale,” Zillow Brand President Jeremy Wacksman said. “We are transforming the way people buy and sell homes, and bringing the magic and simplicity of e-commerce to real estate.”

Zillow said that it plans to add 160 employees this year across various job titles, including recruiters, corporate counsel, human resources, project coordinators, analysts, loan originations, business operations, and employee trainers.

“Arizona wants to be the place where these technologies come to evolve and flourish,” Arizona Governor Doug Ducey said of Zillow’s announcement. “I thank Zillow Group for their investment in our state and look forward to growing our 21st-century economy together.”

Zillow’s move was also welcomed by Scottsdale Mayor W.J. Lane. “Scottsdale is proud to welcome Zillow Offers to Old Town, a thriving business hub that has experienced tremendous growth for innovative technology companies due to their ability to attract and retain talent and operate in a favorable business environment,” Lane said.

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