Zillow Shares Rise as Real Estate Services Firm Again Flips Homes in Some Markets

Zillow shares were higher on Monday as the real-estate-services firm reopened its home-flipping program in certain markets.
Author:
Publish date:

Zillow  (Z) - Get Report shares jumped on Monday as the online real-estate platform and brokerage edged back into the business of flipping homes.

The stock rose 3% to $50.23 at last check, as Zillow said it once again would make cash offers on homes in four markets: Phoenix and Tucson, Ariz., and Raleigh and Charlotte, N.C.

The restart comes nearly two months after Zillow paused its Zillow Offers program as coronavirus infections and deaths began to mount across the country. 

Zillow before the pause had been buying and reselling homes in 24 markets across the country since 2018.

Zillow coupled the announcement of its relaunch with the rollout of a new "Move Forward, Stay Safe" initiative aimed at enabling home sales to move forward amid the pandemic.

While open houses are still off the table, Zillow's new safety protocols have opened the door to tours of homes for sale under the Zillow Offers program by potential buyers.

For-sale homes will undergo an "additional cleaning regimen" while Zillow is recommending home buyers don gloves and masks before going on a tour of one of its homes.

Buyers can also tour homes virtually through what Zillow calls 3D home tours, and can book a virtual consultation on the home with a Zillow agent.

The company has also hired a physician and former U.S. surgeon general, Regina Benjamin, to provide health-care guidance for safe buying and selling of real estate.

Zillow's restart of its home-buying business comes as the online real estate company moves ahead with plans to raise roughly $1 billion by selling stock and convertible senior notes.

The company leaving the door open to potential acquisitions of other firms and technologies.