Spencer Rascoff explains Zillow’s house-flipping strategy

CEO says it's all about providing sellers with liquidity

New York Weekend Edition /
Jun.June 24, 2018 02:27 PM

Spencer Rascoff and a residential area near Phoenix, Ariz. (Credit: Getty)

Spencer Rascoff believes Zillow’s “Instant Offers” program will appeal to sellers who want, or need, to line up the sale and purchase of their home.

The company announced their new house-flipping strategy this spring to pushback from agents who argue such deals can’t be done 100 percent online, but Rascoff sees it differently. In an interview with Marketplace, he said that Zillow’s Instant Offers will help smooth out sellers experience switching homes.

“For most people, lining up the sale of their home with the purchase of the next home is almost impossible and it’s a requirement for them to buy that next home,” he said on the segment. “So we look at our service as basically providing liquidity to the seller so they can have an all-cash offer and a hand for their existing home and then go buy their next home.”

To those who say you need boots on the ground to sell a house, Rascoff advises them to “think about what you do on your smartphone: You press a button and magic happens,” as he told Marketplace. “For the seller, we’re trying to provide that convenience and ease where they take an all-cash offer without having to ready their home for sale.”

Zillow has a market cap of over $10 billion and saw its revenue in the first quarter of 2018 jump 22 percent, in large part due to its Premier Agent program. In April, the company said it would invest up to $250 million to buy 1,000 homes in 2018 for the Instant Offers program. [Marketplace]Erin Hudson


Related Articles

arrow_forward_ios
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Placeholder image
Zillow to pay $50M for StreetEasy
Zillow to pay $50M for StreetEasy
Ulster County, NY (iStock)
Ulster County home prices spiked 20 percent last year
Ulster County home prices spiked 20 percent last year
Ben Hakimian, founder, Hakimian Organization; 244 West 49th Street (Google Maps, KSU)
Hakimian changes Midtown hotel plans to residential
Hakimian changes Midtown hotel plans to residential
53 Downing Street (Compass)
Gut-renovated West Village townhouse tops Manhattan’s priciest contracts
Gut-renovated West Village townhouse tops Manhattan’s priciest contracts
East Hampton Town Supervisor Peter Van Scoyoc and 395 Pantigo Road in East Hampton (EHamptonNY.gov, Zillow, iStock)
East Hampton Town officials vow affordable housing action
East Hampton Town officials vow affordable housing action
Barstool Sports founder Dave Portnoy (Getty)
Barstool Sports’ Dave Portnoy bought a Hamptons beach house
Barstool Sports’ Dave Portnoy bought a Hamptons beach house
$1B in Rent Reduction Available to Select Blackstone Tenants (Blackstone)
Blackstone to spend $1B in affordable single-family rental expansion
Blackstone to spend $1B in affordable single-family rental expansion
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...