Listings with Zillow Special Offers appear at the top of search results, and receive special treatment to capture the attention of home buyers.
Who pays for it -- the seller, or the agent?
The seller pays for the Zillow Special Offer. The buyer must ensure that the Zillow Special Offer is included in the Purchase and Sale agreement when the home is sold.
Why add a Zillow Special Offer?
A listing agent and home seller can include a Zillow Special Offer on a home to bring added visibility to a listing. Some reasons include:
What are other advantages of a Zillow Special Offer?
It can give a buyer more means to improve or furnish their home after the sale. Getting a loan can often require a sizable down payment, and after closing costs, the buyer may be left with little cash left over to buy items for the house.
Here’s an example:
A buyer has saved $45,000 in cash. He wants to buy a $200,000 home, and needs $40,000 for a down payment (20%) and $5,000 for closing costs. If the home’s price was cut by $5,000 to $195,000, he still needs to pay $44,000 to cover the reduced $39,000 down payment and $5,000 in closing costs. He would be left with only $1,000 to spend on the home.
However, if he buys a home with a $5,000 Special Offer that covers all of the closing costs, he would only need to cover the $40,000 down payment, and he would have $5,000 left to spend on the home after the sale is complete.
What if someone finds the home through a Zillow Special Offer and then negotiates a lower sale price?
When you place a Special Offer on a home, you agree to include this offer as part of the Purchase and Sale Agreement, if you sell this house to a customer who contacts you about the home through Zillow. If the buyer and seller explicitly agree to remove or replace the offer in the negotiation process, then that agreement should be documented in the Purchase and Sale Agreement instead.