Zillow Instant Offers: Why It Shut Down for Good

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By Shannon Whyte Updated September 19, 2025
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Edited by Steve Nicastro

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Zillow shut down its iBuyer service, Zillow Offers (formerly Zillow Instant Offers), in November 2021 after racking up massive losses.[1] The program was designed to give homeowners quick, no-obligation cash offers, often within just two days.

The downfall came from Zillow’s pricing algorithm. To compete, the company had to make fast offers — but speed came at the cost of accuracy. Zillow overpaid for thousands of homes, many of which later sold for less than the company paid.

As CEO Richard Barton admitted, Zillow was “unintentionally purchasing homes at higher prices” than they were worth.[2] In other words, the very algorithm meant to make Zillow profitable became its biggest liability.

If you’re looking for the speed and certainty of a cash offer today, you still have options. Clever Offers lets you compare multiple cash offers from vetted buyers — so you can pick the best deal without pressure to sell. Fill out this short form to get free cash offers today!

What was Zillow Instant Offers?

Zillow Instant Offers was the earlier name for Zillow Offers, Zillow’s iBuying program. Homeowners listing on Zillow could sell their home directly to Zillow for cash if their property qualified.

How it worked: Zillow made cash offers on homes, aiming for a fast and hassle-free sale. Within 48 hours, Zillow would offer home sellers an initial cash offer, often based on the Zestimate. Interested sellers would schedule an in-person home inspection. Then, they’d receive a final cash offer that they could accept or decline without penalty.

Zillow Offers allowed homeowners to sell fast and for all cash, similar to other iBuyers like Offerpad and Opendoor. However, Zillow Offers service fees were often higher, especially when combined with potential repair costs.

Zillow Offers alternatives

Company Service type Markets Customer rating*
Clever Offers Offers marketplace Nationwide 4.9/5 (4,132 reviews)
Opendoor iBuyer 50+ markets 4.26/5 (4,361 reviews)
Offerpad iBuyer 23 markets 3.92/5 (2,679 reviews)
We Buy Ugly Houses Franchise cash buyer Nationwide (franchises) 4.66/5 (2,836 reviews)

*Customer ratings and review counts are accurate at the time of publication and are subject to change.

While Zillow Offers is no longer available, home sellers do have other viable iBuying alternatives to choose from.

Clever Offers is a free, nationwide service that lets you compare multiple cash offers side by side. By seeing what different buyers are willing to pay, you can choose the best deal and maximize your sale proceeds. The service is always free to use, though the buyer you select may charge its own fees.

Opendoor is one of the largest iBuyers, operating in over 50 markets across the U.S. Opendoor typically offers competitive pricing and lets you choose your closing date. Opendoor fees include a 5% service fee plus repair deductions and closing costs. Its purchase criteria can be stricter than traditional home flippers.

Offerpad operates in 23 U.S. markets and charges a 5% service fee plus repair deductions and closing costs. The company offers flexible selling options and additional perks like free local moves. However, it charges a 1% cancellation fee if the seller backs out after accepting the final offer.

We Buy Ugly Houses is a nationwide cash-buying franchise that works through locally owned offices. The company makes as-is offers, often at 70% or less of a home’s after-repair value, and can typically close in two to three weeks. While it’s a quick solution for sellers who need to move fast or unload distressed properties, the trade-off is getting significantly less than market value.

Why did Zillow Instant Offers shut down?

On November 2, 2021, Zillow Group announced it was closing its iBuying service, Zillow Offers.[3] The company stated the model was flawed and, as a result, Zillow bought too many homes at too high a price.

According to CEO Richard Barton, difficulties forecasting home prices were a major reason for shutting down Zillow's house-flipping service. Essentially, Zillow ended up with homes worth less than what the company paid for them.

Additionally, the big price swings in the real estate market would create more risk than return. Zillow estimated more than $500 million in losses related to flaws with the Zillow Offers program.[4]

Why Zillow Offers wasn’t always a good deal

Zillow Offers wasn’t always a good deal for home sellers due to the program’s high fees. Additionally, offers were likely to be below fair-market value, which is common for iBuyers, which need to sell the property for more than they spent to buy it to make a profit.

Based on available data, Zillow’s service fees could vary anywhere from an average of 2.5% to 7.5%. That’s before adding in other expenses like closing costs, agent commission, and repair costs. Sellers working with an agent would still have to pay realtor fees.

FeeZillow OffersListing on Open Market
Zillow service fees2.5-7.5% on average*-
Agent commission fees0-3%5-6%
Selling costs6%**-
Repairs1-2%1-2%
Closing costs1-2%1-2%
Total amount10.5-20.5%7-10%
* Zillow reported the service fee average as 2.5%,[5] but other sources quoted Zillow fees were 7.5% on average.[6]

** According to Zillow, the selling costs included the buyer’s agent commission. As of August 2024, as part of the NAR settlement, sellers are no longer required to pay buyer’s agent commission.
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Sellers wouldn’t know the exact amount they would pay in fees until they received a line-by-line breakdown after the home inspection was completed. While sellers could turn down the offer without penalty at that point, the process might dissuade them from pursuing other options, such as listing traditionally or with low-commission agents.

By contrast, many iBuyer competitors, like Opendoor and Offerpad, have a flat-fee service rate, making the service fee more predictable. Alternatively, sellers also can save on fees by going with a discount real estate broker and selling on the open market.

Customer reviews & complaints about Zillow Instant Offers

One drawback to Zillow Instant Offers was the limited verified customer reviews available on third-party websites. Available reviews typically focused on Zillow’s agents, website, or app, not Zillow Offers.

This made it challenging to understand past customers' experiences with Zillow Offers. However, we were able to find a handful of examples on sites like Reddit.

Of the reviews available, common complaints about Zillow Offers included:

  • The initial offer was fair, but the offer dropped after the home inspection.
  • Fees were high.
  • Repair deductions seemed high.
  • If you don’t accept the offer, a Zillow agent will likely contact you about listing traditionally.

For example, one Reddit user reported the initial Zillow Offer was $450K with net proceeds of $395K, which seemed like a fair offer.[7] But, after the home inspection, the final offer was $420K with net proceeds of about $372K. They did not move forward with the program or with the Zillow agent that followed up about listing traditionally.

“We tried Zillow Offers after struggling to sell our home the traditional way. The initial offer was $450K with net proceeds of $395K, which seemed fair given our situation. But after the inspection, Zillow dropped the offer to $420K (about $372K net) because of the home’s proximity to a freeway and warehouses. We decided not to move forward.”

— Source: Reddit

A review on BiggerPockets.com felt the final offer from Zillow ($30K less than the initial offer) seemed too low, especially since the price reduction didn’t match the cost of repairs.[8] The reviewer declined the Zillow final offer of $181K and sold with a realtor for $224K.

Positive reviews

This Reddit user was happy with his experience, selling for a net profit of $397K.[9] He had only a 1% service fee, no repairs, and $1,480 in estimated closing costs. His initial and final offer was the same.

Another Reddit user was also pleased with the experience, even though they knew the initial offer of $870K would be too high. They felt they had a fair offer with a low 1% service fee. Here is a review portion (see link for full details).

“We accepted an $820k offer (minus 1% service fee, closing costs, and minor repairs) and still walked away with a strong net amount. Other options included $834k from Opendoor (plus 5% commission), $755k from Redfin (plus 5% commission), and two realtor estimates of $730k–$800k. Listing on the open market around $860k would have netted about the same once commissions and costs were factored in. For us, the biggest factor was time and convenience.”

— Source: Reddit

Overall, Zillow Offers reviews were mixed — while some sellers reported smooth, fairly priced transactions, others said high fees, repair deductions, and lowered offers made the program less appealing.

Can you still get a Zillow Instant Offer today?

Zillow no longer buys homes. However, it has a partnership with Opendoor, allowing you to sell directly to Opendoor for an all-cash offer.

Homeowners on Zillow can request an instant cash offer from Opendoor. Sellers who choose the cash offer will then work with Opendoor.

If you want a fast, all-cash offer, consider comparing multiple cash offers before deciding so you get the best price for your property. Clever Offers allows you to find and compare offers from cash buyers in your area, and you can get started by filling out a simple quiz.

Alternatives to selling to an iBuyer

You can sell quickly and conveniently without turning to an iBuyer. Some options include:

  • Selling to local real estate investors
  • Listing with a low-commission real estate agent 
  • Considering home trade-in programs like Homeward

To maximize your profits, consider working with a low-commission real estate agent specializing in fast sales. A local low-commission realtor provides full services but at a reduced cost.

If you’re buying and selling, a home trade-in program, or Power Buyer, can help you buy before you sell so you won’t have to manage two real estate transactions at once. You will have to pay fees for those services.

Final thoughts: Is selling for a Zillow Instant Offer (or an iBuyer) worth it?

Selling to an iBuyer may be worth it if you want to sell fast, need an offer from an all-cash home buyer, or want to avoid aspects of selling on the open market, like hosting showings or living through repairs.

However, this convenience comes at a cost. You’re more likely to get an offer below fair-market value. Additionally, service fees combined with other common transaction fees like repair deductions and closing costs can add up, further reducing your profits.

Before signing a contract, consider comparing multiple offers to select the deal that gives you the most flexibility and profit for your home. You can do this quickly, easily, and with no obligation with Clever Offers by filling out some basic information.

FAQ

No, Zillow Offers is not still available. But Zillow now partners with Opendoor. Homeowners on Zillow can request an all-cash offer from Opendoor through Zillow’s platform. Zillow will receive a referral fee if the sale goes through.

Selling your home to Zillow Instant Offers was straightforward. You would:

  1. Submit an online form providing key details about your home.
  2. Review the initial cash offer if you qualified.
  3. Complete an on-site home inspection.
  4. Review your revised and final cash offer to decide if you would accept it or decline without penalty.
  5. Schedule a closing date in as few as seven days or up to 90 if you signed the sale contract.

You could consider selling to a cash buyer or iBuyer, who may be able to close as quickly as seven days.

If you want a fast sale, Opendoor and Offerpad can be good alternatives to the now-closed Zillow Instant Offers. Both offer similar quick sales with a convenient process and a 5% service fee. Offerpad offers extra perks, such as free moves, while Opendoor is available in more states.

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