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At the same time Zillow managed to lose a billion dollars last year buying and selling homes (the so-called “iBuy” program that they were forced to terminate).
by pavlov 5y ago
At the same time Zillow managed to lose a billion dollars last year buying and selling homes (the so-called “iBuy” program that they were forced to terminate).
Something doesn’t add up? But maybe it’s just a question of most homes on the market actually not being desirable enough to get these high bids.
- timy2shoes 5y agoThe bidding up is exactly why Zillow lost money. Algorithmic house buying suffers from the winners curse. When Zillow thinks they are getting a good deal, there are usually extenuating circumstances that are apparent to local buyers which cause them to not bid up the price. That and the iBuy program was expanded way beyond the original scope.