Timing the housing market is notoriously difficult—just ask
Zillow Group. The Seattle-based real estate technology company shuttered its Zillow Offers platform this past week after paying too much for homes it intends to sell. The blunder was Zillow’s; the so-called iBuying business isn’t going away.
When Zillow (ticker: Z) started buying homes, it followed a model similar to that of other iBuyers. Homeowners solicit an offer by providing information about their house online. The property is assessed by a proprietary algorithm, and a preliminary offer is made. Zillow evaluates the home in person and makes a cash offer. Should the seller accept, they set a closing date. Zillow makes repairs and updates, then lists it with an agent. If the seller rejects the offer, Zillow refers the homeowner to a partner agent for a traditional sale.
For sellers, the process saved time and provided flexibility….