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Isn't another problem that people who would use their automated service to sell their houses will skew towards those whose houses have some value-diminishing pr
by supernova87a 5y ago
Isn't another problem that people who would use their automated service to sell their houses will skew towards those whose houses have some value-diminishing problem (which their algorithms have a hard time accounting for) or for other odd reasons have lower than usual market price?
People who can fetch a premium for their houses probably wouldn't use an automated algorithm, which tends towards the mean?
E.g. a self selection of those who would use this service tends to give Zillow a bunch of houses of lower value than average.
- swalkergibson 5y agoWithout question this extends to the other iBuyers in the market. Zillow exiting because they could not make it work should be a massive alarm bell. Not only are they no longer buying new properties, they are liquidating their existing assets. You would not do that if you thought the market would come back to you.
- zebraflask 5y agoIf social media is to be believed, firing 2,000+ employees is also a bit concerning. At a bare minimum, that does not show much confidence in the organizational structure they put together, either.
- everybodyknows 5y agoSo I would think too, yet Opendoor has popped back up within 5% or so of its level prior to the Zillow news: https://www.marketwatch.com/investing/stock/open?mod=over_search https://www.marketwatch.com/investing/stock/open?mod=over_se...