Zillow, The Devil?
Is Zillow the Devil?
In case you haven't heard the news that rocked the real estate world recently-- Zillow is no longer buying homes.
What started out 20ish years ago as a real estate search website turned lead generation website for Realtors, turned homebuyer--all while annoying many Realtors for "taking their leads and selling them back" has now announced a $1,000,000,000 loss in 3.5 years and removing themselves from buying homes (Ibuyers).
They bought more homes in Q3 than the previous 18 months combined!
Most Realtors are loving it right now. LOL'ing in their office while surfing Facebook that Zillow got what was coming to them.
Here's the short version. Even though it isn't that short.
For whatever reason(s) they got so aggressive in buying everything for as high of a price as possible. I saw this, as did many others, firsthand. Offering crazy high offers for homes that ordinarily would not sell for anything close to that (even in this market).
Every action has a reaction, right? Ever since really COVID happened, buyers have exprienced bidding wars, horrible experiences of losing out or not even having a chance at a home. Sure, there are many reasons why. But one of them is how can a first time buyer using an FHA loan that they have worked their asses off for for years to buy a home listed for 400k, get close to offering 500k and have a chance to compete. The answer is usually they can't. And many times, that home never even hit the market, or when it did, it comes in the Devil.
And all of these employees that are now having to look for work somewhere else. What a damn shame--seriously.
In my video I mention how Zillow isn't the only one to blame here. Remember that home that you tried to buy-well that owner had a chance to put it on the market and allow you to make an offer. They chose not to. That's their right. But now, if those same homeowners come back to the market complaining about cash investors and IBuyers-BACK OFF. You are the cause of the problem. Zillow just helped you get there.
Let's also discuss their world famous algorithm. When you go online and want to find out your home's value you click on their Zestimate, which then magically gives a number that so many homeowners think is the appraised value of their home.
It's some random number that their computer spits out based on whatever it pulls from. Which by the way is the same number they used to figure out their acqusitions values which they are now stopping because of their losses and greed.
So to those homeowners who use/rely on/trust the Zestimates for anything of relevance. Cool. But guess what? It has no bearing on anything. The ONLY thing that matters is a trusted local Realtor who knows the market.
And also what matters is a Realtor who will give you all options. I am not fearful of IBuyers taking over the entire business. They may or may not gain more market share. I know what I know. And I know it well. None of us can predict the future. So, are they Devil? I'll let you decide.