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What was reported by Marketplace and iirc CNBC is that the problem Zillow ran into was a shortage of local labor to renovate the houses they purchased. Which m
by duped 5y ago
What was reported by Marketplace and iirc CNBC is that the problem Zillow ran into was a shortage of local labor to renovate the houses they purchased.
Which makes sense, as anyone who has tried to hire a contractor in the last six months could have told you. I'm not sure if their ML/data tools accounted for that.
But this quote struck something with me :
> “It’s like it’s making decisions two to three months too late relative to the market.”
That's true of everyone buying homes. The only people who have up to date information on what homes are selling for are the local agents, banks, and lenders. If you're trying to understand home pricing from the outside your data is lagging the market by 45-60 days at a minimum.
When I was putting offers on homes over the summer I was astounded how hard it was to find out what a fair price was. For a layperson it was essentially impossible.
- short12 5y agoThat isn't untrue regarding local agents, banks etc having up to date info Pending sales are updated as soon as it's A/O It's usually problematic because people suck at searching for comps. And agents are no better at it than anyone else
- duped 5y agoThe sale price isn't available until close. Knowing that an offer was accepted and how fast it was accepted is useful, but what you really want to know is "for how much." Even if you make an offer and it is rejected or another offer is accepted you and your agent have no idea how far off you were.
- caminante 5y ago> Pending sales are updated as soon as it's A/O The status is updated, but is the purchase price entered when a purchase agreement is signed? AFAIK, the purchase price is eventually entered, but there's a lag.
- nradov 5y ago"Fair" is so subjective as to be meaningless. What is the property worth to you?
- caminante 5y agoThe parent comment is not griping about intrinsic/extrinsic valuation. They're griping about the "lag" (30-60 days) in price discovery of market comparables as a non-realtor/banker.