Company Is Developing Opportunities for Broker Partners as It Builds Out New Mortgage Technology
Zillow Group’s Zillow Offers (formerly Instant Offers) program continues to make its presence known, expanding into new markets and offering new tools to consumers.
Recently, Zillow made news again with the announcement that they’ll be acquiring Mortgage Lenders of America, based in Overland Park, Kan., a move designed to streamline and shorten the mortgage process for consumers who purchase homes through Zillow Offers. As Zillow builds out this mortgage product, the company says it will make tools and technology available to brokerages, consistent with its goal of providing a superior consumer experience while strengthening partnerships in the real estate industry.
Through Zillow Offers, the company buys and sells homes, always with a local broker and agent representing them in the transaction. As they sell those homes, they put them in the MLS and ensure cooperating brokers get market-rate commissions.
According to Zillow Group, the program is going well. Zillow Offers is up and running in Phoenix, Las Vegas and Atlanta, and will soon be live in Denver. In Phoenix alone, Zillow has purchased dozens of homes so far, with more than a dozen on the market, and more under contract. However, Zillow has found that the vast majority of sellers still prefer to go the traditional route—with an agent—and they report that the program has generated great seller leads for broker and agent partners.
Getting a mortgage is often the hardest, most complicated part of buying a home. Zillow Group believes that the acquisition of Mortgage Lenders of America will allow the company to leverage its technological expertise to provide an easier and faster mortgage experience; Zillow also plans to offer tools and technology to brokerage partners so that they can improve capture rate at their own mortgage affiliates. According to Zillow, these tools are still in development and will be rolled out in the coming months.
While Mortgage Lenders of America will help buyers of Zillow-owned homes have a more seamless experience, the company originates a fraction of the loans requested through the Zillow Mortgages marketplace every year. Mortgage Lenders of America will continue to offer mortgages to homebuyers outside of Zillow Offers, and will continue to participate in their lender marketplace. Zillow Group will also continue to offer lender advertising programs including Connect, Custom Quotes and lender co-marketing.
In 2017, consumers submitted 23 million loan information requests through Zillow Group’s consumer brands. Zillow plans to continue to grow this marketplace and bring tools to industry partners to help them further grow their businesses.
For more information on partnering with Zillow Group as they build out mortgage technologies, please visit www.zillow.com.
For the latest real estate news and trends, bookmark RISMedia.com.