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> Zillow’s exit from the market strengthens the position of companies like Opendoor or Offerpad, which do something similar Does Opendoor just have better algo
by devmunchies 5y ago
> Zillow’s exit from the market strengthens the position of companies like Opendoor or Offerpad, which do something similar
Does Opendoor just have better algorithms/models? What factors allow them to have different outcomes from Zillow?
- bkberry352 5y agoMostly that they no longer have to compete with Zillow
- trixie_ 5y agoThis is a good question. I am long on some company figuring out how to really streamline the home buying/selling process. Everyone dreads it, nothing worse than trying to buy or sell a home. These companies could be great buffers allowing the quick sale/buying of a home with minimal overhead. There is definitely a market for providing 'peace of mind' and the guarantee of not being screwed which today there is a high probability of from all angles. Hopefully Opendoor can figure it out. They're probably going to need a lot of cash, homes, and software to really put it together into something that can be automated and scale.
- philipodonnell 5y agoIf I remember the discussion at the time, OpenDoor and Offerpad are pure-play iBuying while Zillow was an already huge business pivoting into iBuying to make up for declines in its advertising business. Zillow had a reason to scale faster than the others and they didn't do it very well.
- bgentry 5y agoYes. Source: I was employee 24 at Opendoor. Zillow's pricing algorithms are and always were terrible. They tried to paper over this during their iBuying push with humans, and then in an effort to outgrow Opendoor, they incentivized growing at any cost without the proper controls to prevent adverse selection. And due to some unfortunate timing with the market cooling, they got wrecked for it.