Zillow surprises investors by buying up homes

Real estate platform Zillow changed up its business model this week, announcing that it plans to purchase and sell homes in Las Vegas and Phoenix.

Zillow will be working with Berkshire Hathaway and Coldwell Banker to make offers on homes before it finds a buyer. Zillow will pay commissions and also “make necessary repairs and updates and list the home as quickly as possible.”

Calling it “Instant Offers,” Zillow says,

“the program gives real estate agents the opportunity to acquire new listings by connecting them with motivated sellers who have taken a direct action to sell their home. Across all testing, Zillow found the vast majority of sellers who requested an Instant Offer ended up selling their home with an agent, making Instant Offers an…

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