Author Topic: Zillow to stop flipping homes for good as it stands to lose $550 million+  (Read 467 times)

rcjordan

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ergophobe

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Re: Zillow to stop flipping homes for good as it stands to lose $550 million+
« Reply #1 on: November 16, 2021, 12:23:28 AM »
Why Zillow Couldn’t Make Algorithmic House Pricing Work
The real estate site went into the business of buying and selling homes. But the pandemic messed up its predictions.
https://www.wired.com/story/zillow-ibuyer-real-estate

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In the second quarter, Barton said, Zillow actually was able to sell homes for 5.8 percent more than it expected. In the third quarter, though, Zillow sold homes for 5 to 7 percent less than it forecast... Zillow was also buying homes at a higher price than the market average: $65,000 more in September. In Phoenix, the problem was particularly acute. Nine in 10 homes Zillow bought were put up for sale at a lower price than the company originally bought them, according to an October 2021 analysis by Insider. If each of those homes sold for Zillow’s asking price, the company would lose $6.3 million.

rcjordan

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Re: Zillow to stop flipping homes for good as it stands to lose $550 million+
« Reply #2 on: November 16, 2021, 12:29:36 AM »
At least in our area, anyone with MLS access could tell that Z's pricing algo was too high.  Agents' recurring nightmare has been clients who wanted to list at what Z valued the property.