I think they failed to consider adverse selection. For instance, if I'm selling my home, I will check Zillow instant offer and try the traditional market. The Z

I think they failed to consider adverse selection. For instance, if I'm selling my home, I will check Zillow instant offer and try the traditional market. The Zillow offer will be my floor plus some value for convenience. So they will likely be overbidding. The other thing is that running a website and being a data aggregator is an entirely different business than speculating on houses. Matt Levine pointed this out last week [0], but its not making markets if the turnover takes 6 months. [0] https://www.bloomberg.com/opinion/articles/2021-11-03/zillow-is-done-trading-houses https://www.bloomberg.com/opinion/articles/2021-11-03/zillow...