Zillow iBuying ClassicBusiness Mistake
Zillow's iBuying program is going down in flames. They are unloading $2.8 Billion worth in homes across the country and $12 million in Palm Beach County. Their mistake is overpaying for homes and competing with buyers in this very heated sellers' market. A classic case of a company getting into a business it knows very little about and failing. Zillow is an advertising business who decided to become a real estate investor. As we are now seeing it isn't as easy as it looks to be a real estate investor. I have always had to battle with Zillow estimated values with clients since this Zillow estimates or Zestimates were not accurate but simply a computer algorithm coming up with a value for homeowners. Zillow will stick with advertising and leave it to experienced real estate investors to handle real estate investing. The good news is less competition for buyers who want to live in the home! There could be some opportunities to purchase these Zillow properties since they will probably unload them at a discount.