11/03/2021
Have you heard about Zillowโs catastrophe?
A couple years ago, they created their iBuyer program where they infiltrated cities across the US, buying and โflippingโ homes and by โflippingโ I mean a shabby paint job, leave the nails and TV wall mount up for you to remove so they can make a profit.
Hereโs the scenario: they go into a neighborhood and purchase 3 homes at $450,000 then buy the 4th home at $500,000. All 4 homes are similar in location, style, size, and amenities. Zillow can then use that โcompโ for the other 3 homes and turnaround to sell the other 3 homes at a profit for doing absolutely nothing.
Well, their formula did NOT work at all and theyโve been losing millions of dollars, they cut their iBuyer program and are laying off 25% of their workforce as a result of this debacle! Zillow definitely contributed to the housing market inflation so Iโm glad to see this program kick dust.
Picture above is a Zillow home in McDonough, GA I viewed with a client Monday and this was a prime example of putting lipstick on a pig.
Have you heard of this hot mess and if so, drop your thoughts below โคต๏ธ