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I think the title is highly misleading. The main point here is that Zillow simply had no idea what it takes to be a market maker and their pool was picked off b

by abiro 5y ago

I think the title is highly misleading. The main point here is that Zillow simply had no idea what it takes to be a market maker and their pool was picked off by savvy traders. Good tweetstorms with technical explanations on how that happened: https://twitter.com/macrocephalopod/status/1455887352371597312 https://twitter.com/macrocephalopod/status/14558873523715973... https://twitter.com/0xdoug/status/1456032851477028870?s=21 https://twitter.com/0xdoug/status/1456032851477028870?s=21

treis 5y ago
I'll second that this article is just wrong. Zillow burned plenty of money in their Offers business. The problem is that all that spending revealed that they performed poorly in a questionable market segment. Ultimately they were really bad as flippers. More often than not paying more than market price for the homes they bought. I think the root problem is that this was a panic move. They saw Open Door's success and thought they had no choice but to try and replicate it. But its a questionable business move for Zillow and ultimately they couldn't make it work
MisterBastahrd 5y ago
Zillow offered to buy my home at 30% more than everyone else in the market for cash, without an inspection, and I wasn't even looking to sell it at the time.