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Saying that management bought at prices higher than model is not the same thing as saying they bought houses expecting to lose money. All that was said was that
by hogFeast 5y ago
Saying that management bought at prices higher than model is not the same thing as saying they bought houses expecting to lose money. All that was said was that management increased the prices they would pay and changed the model so they could pay more. Nothing validates the model (again, this is a common-sense conclusion given the informational disparity that Zillow was at).
- encoderer 5y agoRight, they didn’t expect to lose money. They saw they were only closing 10% of deals and wanted to take a higher share from opendoor. They probably thought the market was going up fast and their models were too slow.