Zillow is partnering with once-rival Opendoor in a multi-year deal, the company announced in a press release.
Home sellers using Zillow will be able to request an Opendoor offer to sell their home while on the platform. Customers will be able to use it by itself or package it with other Zillow services such as financing, closing, and agent selection.
Zillow will get a referral fee when a customer accepts an offer from Opendoor.
“Zillow is the most visited brand in online real estate. As we bring the housing super app to life, we’re empowering our millions of visitors to understand all their options and transact in the way that best meets their housing needs,” said Zillow Chief Operating Officer, Jeremy Wacksman.
Opendoor President Andrew Low Ah Kee said the deal is intended to turn home selling, which can be stressful and time-consuming, into “an e-commerce experience that’s simple, certain, and fast.”
By bringing together Zillow’s market-leading audience and Opendoor’s e-commerce platform, more consumers will have the option to sell to Opendoor and save themselves the stress and uncertainty of a traditional sale process,” he said.
“For parents looking to upsize, a young professional moving for a new job, and millions of others who regularly use Zillow to explore their home selling options, we will provide them with the ability to move with a tap of a button.”
Those who remember last year’s Zillow Offers saga may raise eyebrows at the partnership. Zillow and Opendoor were at one time iBuying rivals.
When Zillow was forced to shut down its iBuying arm, a move that was widely viewed as being the result of mismanagement, Opendoor made a point to say it was “open for business and continues to scale and grow.”
At the time, it had purchased 4,689 more homes than Zillow and was active in 44 markets, compared to Zillow’s 25, but was functioning at normal capacity with no delays.
It had its first-ever profitable quarter in Q1 2022.
The deal comes on the heels of Opendoor’s $62 million FTC settlement this week. The Federal Trade Commission argued that Opendoor misled customers by saying they could make more money selling to the company than by the traditional route.