Selling solution

Houston homeowners first in Texas to showcase Zillow's new cash offer homebuying program

A new service from Zillow helps Houston sellers get cash fast. Photo courtesy of HAR

Local car owners looking to rid themselves of their ride know the no-hassle ease that CarMax and TrueAuto offer. But what about those looking to quickly unload their home? Fortunately, a new service has made it easier for homeowners to score some fast funds from their domiciles.

Houstonians can now use a new program from real estate marketplace Zillow to sell their home. With Zillow Offers, local sellers can request a free, no-obligation cash offer. Once the seller accepts, they can pick a close date that works best for them.

The idea is to give consumers more control and certainty in the home-selling process and allows sellers the opportunity to sell their house on their own timeline, according to a statement. Zillow notes that timing the sale of a home with the purchase of a new one is a top concern for sellers and that 61 percent of sellers are buying a new home at the same time, which adds significant stress and financial complexity to the process.

Houston is the first Texas market and the seventh market nationwide where Zillow directly buys homes, prepares them for showings, and quickly lists them for resale.

Zillow Offers is currently available in Phoenix; Las Vegas; Atlanta; Denver; Charlotte, North Carolina; and Raleigh, North Carolina. Zillow Offers has also announced plans to launch in Dallas; Miami; Minneapolis; Orlando, Florida; Portland, Oregon; Nashville, Tennessee; Riverside, California by fall 2019.

"Texas is home to some of the largest and most vibrant housing markets in the country, and we're thrilled to bring Zillow Offers to Houston today," says Zillow brand president, Jeremy Wacksman, in a statement. "In just nine months, Zillow Offers has already helped thousands of homeowners sell their home in a simple and stress-free way."

While direct-sell in theory, local real estate agents are still very much part of the Zillow Offers process. The service works with local agents and brokers on every transaction and pays commission to agents when it buys and sells each home, according a Zillow release.

"What we've overwhelmingly heard from these consumers is that they love the control we give them over the entire process," Wacksman says. "Starting today, Houston-area homeowners are able to use this innovative, consumer-first service for one of the largest financial transactions of their lives."

The program also gives local brokerages and premier agents the opportunity to acquire new listings by connecting them with motivated sellers who have taken a direct action to sell their home, according to Zillow. These motivated sellers who request a Zillow Offer, but opt instead sell their house traditionally with an agent or do not receive a Zillow Offer, will still be connected with a local brokerage or agent.

In a city where certain neighborhoods are moving a blistering pace, this new program could be an easy sell for savvy homeowners.

More and more real estate companies are using technology for the homebuying and selling process. Houston-based Entera uses machine learning, for instance, in the process, and Offerpad, an ibuyer, recently announced its expansion to Houston.

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This article originally ran on CultureMap.

Reda Hicks create GotSpot — a digital tool that helps connect people with commercial space with people who need it. Courtesy of GotSpot

It only took a natural disaster for Reda Hicks to make her startup idea into a reality.

"I had been thinking on what it would be like to help people find space to do business in and how businesses find a way to stay in business a long time," Hicks says. "But, I was afraid of the tech."

Hicks, who has practiced law for almost 15 years, wanted to create a website that allows for people with commercial space — a commercial kitchen, conference room, spare desks, etc. — to list it. Then, space seekers — entrepreneurs, nonprofits, freelancers, etc. — can rent it. When Hurricane Harvey hit, Hicks was kicking herself for not acting on her idea sooner.

"It was really Harvey and having so many people desperate to find space for emergency purposes that made me realize there are so many contexts in which people need space right away for something specific," she says. "Certainly the primary user is the entrepreneur trying to grow their business, but there are so many other reasons why a community would need better access to the space it already has."

GotSpot Inc. soft launched last June with 17 listings. The company now has 37 and new listings are generated daily. Hicks has won two pitch competitions and is headed to Silicon Valley in March for Women's Startup Labs.

"In 2019, we're going to be working with local business partners, like the chambers. We'll be working on building out a team. I'll be hitting the road in March headed to Silicon Valley for Women's Startup Labs."

She spoke with InnovationMap on her career and what it takes to be a mom, a wife, a corporate lawyer, and a startup founder — all rolled into one.

InnovationMap: Did you always want to be an entrepreneur?

Reda Hicks: I feel like I kind of grew up the way a lot of small town, lower middle class kids do. The options you're aware of were either people you know or what you see on TV. Growing up there were no people in my life who were entrepreneurs. Even as a professional, it never even occurred to me. It's more about seeing a problem I wanted to be solved more than I just wanted to own my own business.

IM: How does GotSpot work?

RH: I have two types of users. One is the person who has the space — a shop on Main Street or conference rooms you're not using — and you're looking for a way to monetize that space. We call those our spot holders. It's so easy to go on the platform and create your profile and generate a listing. On the other side, I have spot seekers who can go on the site and search the available listings they are interested in booking for hours, days, or weeks at a time. It's not fully automated right now. The booking process and the calendar is all ran by me. In the next two to three months, we'll have it up and running like that, and it will feel a lot like Airbnb.

It's strictly website based right now, and I did that intentionally. Spot holders don't want to build their profile on their phones. But the site is mobile friendly.

IM: What are some early challenges you faced?

RH: My biggest challenge honestly was having a problem and wanting to solve it, but not knowing where to start — especially because I'm not a tech person. From a subject matter and contacts perspective, I felt like I had the resources. My first question was, "Who can I call?" It's a testament to Houston. No one I called said no. We talk often about how we are a new ecosystem, but we also are an extremely generous and connected city. What I see and what I hope continues is that we are an ecosystem that builds by leveraging all the awesome that's already here.

IM: Where did the name come from?

RH: I reached out to three military spouses I know and asked them to help. We spitballed a bunch of ideas. I wanted it to be simple and clear, because so many brands come up with a cute name but it takes forever to explain. We literally pulled out a thesaurus and thought of all the words that mean "space" and "finding," and that exercise is where GotSpot came from.

IM: What makes GotSpot different from anything else out there?

RH: There are a few different marketplaces out there for commercial space, but they tend to be more specialized. But another way GotSpot is different is I'm being very intentionally community driven. I look at GotSpot as your digital sidekick to grow your business — whether it's helping you pay your rent by creating a new way to make money or helping you say yes to more opportunities. But I'm also collecting information on how that same space can be used for the community. Harvey is a part of my origin story. Every time I onboard a new space, I ask if you are willing to be activated in case of an emergency, and if so, how can you be used — industrial space or washer and dryers. In other communities, there are other kind of emergencies. And, I also know half the nonprofits in Texas don't keep their own space any more, because donors don't want their money to go to overhead. I ask my space holders if they are willing to give a discount to nonprofits.

IM: What expertise from your career as a corporate lawyer do you bring to your startup career?

RH: A couple of things. I've spent my whole career working in large corporations. I really understand how the inside of a company works and how to think creatively and mitigate risks. It's so interesting because when I start talking to people about GotSpot, I have to be honest about how this is my first entrepreneurial experience. So when I say that, people tell me, "well, you're going to have to have really good counsel." And I tell them, "well, actually, I am really good counsel." The demeanor of who I'm talking to — whether it's an adviser or a potential investor — fundamentally shifts.

IM: What's been the most challenging aspect of still working full time and having a family?

RH: Probably the thing that has been the most challenging has been access to resources as a female founder. What I mean by that is there's all this great programing and things happening around town are always in the evening. It's hard to make happy hours. What I'm starting to see is more programing is a diversity of when that programing is available. I'm privileged in that I can do my job from anywhere during the day, but if all of the golden opportunities are on a weekday at 5 pm, my mommy duties win. Always.

IM: How has Houston been as a home for your startup?

RH: I think one aspect of the secret sauce is how open and can do of a city it is. It is not the traditional thing you think of when you think of startups. But we know better. In the startup space, what I love, is that I am kind of seeing it like we're building the plane as we're flying it. We have some people who have been around for a long time, but even some of our incubators are startups on their own. We have the ability, since we're still building it now, to have an ecosystem that reflects our city. We have a long ways to go, there are still some things that we are working through — capital is one of them.

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Portions of this interview have been edited.