Zillow CEO on getting out of the home-flipping business
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- Опубликовано: 1 ноя 2021
- Zillow is no longer flipping homes due to labor and supply shortages, and its inability to renovate and flip houses fast enough. Rich Barton, Zillow CEO, joins 'Closing Bell' to discuss. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
Zillow, the digital real estate company, said on Tuesday that it’s exiting Offers, its business that buys and flips homes, and eliminating 25% of its workforce.
The announcement was attached to Zillow’s third-quarter earnings report. The company’s revenue and earnings missed analysts’ estimates.
“We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated,” Zillow CEO Rich Barton said in the release. “Continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.”
The stock dropped about 7.5% in extended trading following a 10% plunge during regular market hours. The shares are now down about 10% for the year as of Tuesday’s close.
Here are the key numbers from earnings:
Earnings per share: loss of 95 cents adjusted vs. profit of 16 cents per share expected in a Refinitiv survey of analysts
Revenue: $1.74 billion vs. $2.01 billion expected by Refinitiv
Revenue in Zillow’s Offers business, which competes with Opendoor, climbed to $1.17 billion in the quarter. That’s way up from $186 million a year earlier, which was in the middle of the pandemic and in a dry period for transactions. However, the homes segment, which is mostly Offers, lost $422 million in the quarter, producing an overall net loss at the company.
Shares of Opendoor rose 7% in extended trading. The stock plunged alongside Zillow earlier in the day, dropping 15% at the close.
Zillow launched Offers in December 2019, starting with Southern California markets. The iBuying, or instant buying, product allowed homeowners to sell their home to Zillow for cash, eliminating a lengthy bidding, sales and closing process. They also didn’t have to worry about costly repairs before putting their house on the market.
“After closing on a home, Zillow will take care of necessary repairs, working with local contractors to complete projects like a fresh coat of paint, servicing HVAC units and other work a typical homeowner would do to get their home ready for sale,” Zillow said in a press release at the time.
But the home-flipping market proved to be a drag for a company that had built its brand on listing homes across the country and helping buyers and sellers connect through a marketplace. Prior to shuttering the business, the company said on Monday that it would stop buying houses through the end of the year, citing tight labor and supply markets.
“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” said Jeremy Wacksman, Zillow’s operating chief, in a statement this week. “We have not been exempt from these market and capacity issues and we now have an operational backlog for renovations and closings.”
Barton told CNBC’s “Closing Bell” after the report that Zillow’s ultimate failure was its inability to predict housing prices accurately. At the start of the Covid-19 pandemic, the market dried up. It then bounced back dramatically, and prices in many markets have climbed to record levels.
For the home-flipping business to be profitable, a company has to be able to sell a home for more than the purchase price and have enough margin remaining to cover all the other costs, such as maintenance and sales and marketing expenses. Barton said the company realized that it’s not in a position to accurately predict where home prices will be in six months “within a narrow margin of error.”
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They were buying high, they purchased my sisters home for 425,200 when the max local agents would list for was $330,000-350,000. My sister took the Zillow offer of course bc it was much more money but Zillow is still sitting on their old home. Zillow listed for $429,200 and have lowered several times and have been sitting on it for a couple months now. Their actions have artificially inflated home prices in many areas
What city is your sister in?
@@Brandon-sr2bl Hey there, she’s Northwest of Atlanta. The house she sold was in Powder Springs, GA. Zillow’s holding 2 properties on her old block that we know of. One they’ve had sitting on the market at for over a year. It was listed at $385K and larger than hers. Initially we thought maybe they were buying her house to create a comp now we don’t know what they were thinking
100% agree with you. Zillow overpaid to create comps that allowed markets to dramatically run up in price with said Zillow comp. Zillow offered my friend $470k no closing costs when comparable are going for $450k. He said no. I said your crazy as it nets you $50k more than regular sale.
Absolutely correct. Any potential home buyer needs to sit and wait, and then wait longer. Things are about to correct substantially.
@@kylemurray8662 yes waiting patiently.
He said there won’t be a fire sale that means there’s almost certainly going to be a fire sale
Harris Biden oh he’s definitely panicking
@Harris Biden I think that’s just a way he talks. CEO of a company like Zillow can’t show emotion swings easily like that.
yup!
Unfortunately, they are currently holding several thousand fire sales.
Zillow will probably package those houses and sell them to a Blackrock or Koch Brothers so they can rent those houses at an outrageous rate.
This dude should be part of the 25% cut.
One of the dumbest things I've seen in real estate in over 40 years. Ya he should be out but... No one but little guy is accountable anymore
Carrying costs, transaction fees are eating his lunch. Zillow has always said your home was worth more than the real comps. Local Realtors that knew the market always had to try and get home owners to realize the internet magic number is not correct. I'm glad they are getting cash called.
Their comps are always a complete joke
Agreed zillows price was for a perfect updated house. In 2021 people paid that price even when it was a dump
@@RealLifeFinance not really...their comps were always outrageously high.
@@RealLifeFinance and with those fake comps im wondering how much it fueled appreciation. I bought a duplex 2000 miles away based on comps...
Lol..big mistake!
The housing market has peaked and they’re caught holding way too much inventory. The longer it takes them to dump inventory the more they’ll lose per sale.
Rent it - but they don't have the infrastructure to do it.
I used to be in realestate and Zillow prices always made my hair stand up.
I hope you’re right, because I still see bidding wars in major markets
Sw Florida - no inventory but also not that many buyers . Compared to the insanity of the last 4y .
@@frankyhonnolus5528 In a major market here. It's really cooled down.
@@TBrown-zy2dr Do you mind sharing the location?
His demeanor shows a person who is in over his head.
Look like it
They're getting out now because they know what's coming.
The music is about to stop and they can feel the heat
what's coming!?
@@christopherdennis4280 those eviction moratoriums have ended. A fire sale and everyone trying to unload inventory
@@googlebanmetoomuch2601 could you explain a little more
@@oscarsegura2112during eviction moratoriums landlords had no income coming in and they prevented the landlords from not only from selling thier properties or profiting from the soaring home prices(prices kept going up cause there were no available properties). Now that the moratoriums have ended after almost 2yrs there's a massive backlog of inventory coming online. I wouldn't necessarily say that the housing market is going to crash but it is definitely going to have a price correction. Both commercial and residential. Probably mostly in democratic states with high taxes(places everyone with money fled from.) Zillow is left holding the bag.
Pure greed at it's finest, driving up the prices! I hope they all tank!
Tank!!! Tank!!!
Me 2🤬 Greedy MFS
Let them bleed!
He looks lost. When the leader looks confused, the battle is over.
He screws up the stock price and badly misjudged the market. So of course, he will be given a raise.
Agree, sadly, that seems how the upper ladder always works.
If you buy a lot of trash blindly you will be underwater. "Flipping house" is a very low marginal market. You need to work very hard to make money there. It involves a lot of people and personal attention even more then new construction. These high-tech guys got used to work in high marginal markets so they failed.
Really feels like housing has peaked, where I live in just one year housing went up from $600K to $1.5 million can’t get anymore ridiculous than that.
My $50,000 home is now worth a hundred and seventy-five. To me it's still only worth $50,000
Sounds like Denver! I agree, this can't go on. Not many people went from being able to afford a 600K house to a 1.5M house during COVID. Doesn't make sense.
Is this Denver?
In Seattle went from $600k to $800k thats bad enough
That's mental!!!
Melbourne, Australia actually. We have the same housing madness going on as US/Canada
Simply amazing that they failed to flip homes in such a hot real estate market.
They timed it wrong, got in at the top. Flippers all over are holding the bag now if they didn’t get in before like June-ish
Horrible entry point makes the deer froze at the headlight.
Exactly which means something else is going on, I suggest he's privy to information we're not and so they're getting out of the property market now for a reason.
@@Thyalwaysseek The rich have exhausted buying 3rd homes, and the middle class and poor can't even afford to buy one home. Something has to give.
@@CommanderRiker0 a lot of first time home buyers
This is the definition of a fire sale. He's selling his entire inventory for a loss and wants to be out ASAP. Ifk what else that could mean.
How does this guy still have a job?
Hes well connected.. theres a secret club for CEOs
Cause he is the largest stockholder in Zillow. They still have over 3 billion in reserves, Zillow is down but not out
As a retail trader...i find this very troubling. I see this as one of the first cracks developing in the RE market
How? This one company completely misunderstood a business they were trying to get into. Most RE investors saw the flaw in Zillow's model because of their sole use of algorithms. Could you explain your comment more please?
@@bauttiet.h.u.g.5900 I mean for me, why not sell the properties at comparables? Why unload at huge losses?
@@johnnycastaneda2371 that would make sense if they had licensed professionasl to help guide their home purchasing and selling decisions but they don't. Zillow uses data analyst to help make these decisions and that's why they over purchased over priced home. That's why they have trouble finding contractors to update and improve homes. As a business, they may have over extended and now the need the cash therefore they are selling some of the homes at a loss. I'm just not quick to think zillow's issues suggest issues in the broader RE market.
@@bauttiet.h.u.g.5900 of course that may not mean there will be a housing crash, but the CEO said the market is so volatile currently that they can’t see 6 months out. That is a concern and begs more questions… everyone can make what they want with this data
@@johnnycastaneda2371 i see you point but the fact that the market is volatile and not being able to predict 6 mo out is something experienced licensed RE professionals already knows. Markets change and they're relatively unpredictable.
Zillow stock just keeps falling after the company’s shift in its strategy away from homebuying and selling. I think I made a bad choice trading on them. Still contemplating if this is a minor setback and worth keeping long term.
I doubt it’s worth it, just checked the stock price and to be honest it isn’t doing any better and based on technical analysis the graph doesn’t show any sign of the stock rising in the near future.
@@marcobernie8285 That’s true but most traders won’t be fully affected by this pull back especially those that bought into Zillow stocks two to three years ago.
@@johncritter1095 How so?
@@timothyducky4861 Although the company might be going through a bad situation at the moment. Comparing their stock prices within two years, you will notice a significant rise in the stock price.
@@johncritter1095 Seems you really know your way around the stock market.
Dear Zillow, why do you disrespect listing brokers by hiding our info so you can charge brokers with ad fees for their name to appear on the listing and win the buyer who is coming to me. AS A RESULT- I have brokers bringing people to my listings that have never met their buyer and know nothing about the property. 4 out of 5 times the buyer asks me for a card. You have scrambled the process and lowered the professionalism in the business. Congrats!
Zillow bought most of their houses in the Phoenix area. Right in the middle of a 100 year drought. What good is a house if there is no water left??? When 60% of the entire population leaves the area due to drought prices will drop by 85%.?
Was wondering if anyone was thinking about the lack of water down thar. But they had to claim their water allocations before Cali steals it.
Yikes
I'm a recently retired 32 year real estate veteran. In my humble opinion this market is overbought. Interest rates are more risky to the upside. The economy is not strong. Conclusion: Wait. Rates must go higher and that will put downward pressure on prices.
Wise.
You wait.
Fed will start to taper soon and interest rates will rise. Inflation is NOT transitory.
Even if interest rate rises, where is the inventory for people to buy? No options will again lead to over list pricing
Wait till when though?
I wouldn't buy a zillow owned home. Let them eat up the losses.
This tells you right there... the homes are over valued and nobody wants to touch them.
Their arrogance is catching up to them. Hard for Zillow to make money when they pay top dollar for homes then flip them within weeks for 10-20% more and get no offers. Add to that they are notoriously difficult to communicate with during the transaction process. Word is getting out, the general public want to know a dedicated person will get them over the hurdles of buying and selling a property. This ain't booking a flight or hailing a cab on your phone app.
The housing market lead inflation because of the low interest rates and the federal reserves endless printing. Consumer goods follow home prices up. Home prices have peaked and zillow still needs to renovate in an environment where building materials are still inflating and people have quit there jobs or are being fired for not being vaccinated. Zillow is screwed.
this CEO is looking for a new job right now I think
I can see it on his face ..he ashamed! ashamed!
Hilarious is he gets million dollar severance despite destroying ZILLOW 😂
They bought high and now they’re selling low. Definitely opposite of what Warren Buffett says.
What if they sell low and buy lower again..Is this any strategy in making..
Oh, they got burned. Next comes those that went and offered over asking prices. After that the housing market.
Why were you in that market in the first place? Greed! Don't blame it on the pandemic. You are part of the reason this housing bubble has gone this big!
Yeah, it has nothing to do with low interest rates, just the couple of thousands of homes zillow owns compared to the millions of homes on the market, makes sense, lmao.
@@JS-bk4pn Well, when you bid up the price of all those homes thinking you can sell them at even higher prices, pumping the housing market bubble bigger and bigger, if you cannot offload those properties, it's your problem, your bad business decisions. Nobody's stuck a gun in your head and forced you to be greedy and flipped at least 7k houses at a time. Another Bill Hwang in the making.
@@bbitsme7971 They are a very very small reason, if any.
One has to wonder if they see the writing on the wall and are trying to shed as much bad assets before it hits the fan.
Of course they do, there is no way you can't make money in this property market, he has access to some info we don't and he's getting out now.
All rates have to do is rise a little further and a lot of people won’t be able to pay their mortgage and will have to sell which will send prices lower. Already sales are slowing
Meanwhile his compensation goes up 90%
Not impressed by the CEO, stock will go down to the mid 70’s
$50.00 in 30 days. If the drought get's worse than it is in Phoenix (100year bad drought). All bets are off could go into the teens.
Ill buy maybe 30's or 40's.
30s, prepandemic levels more like it
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Wow this CEO makes such a strategic blunder which costs company billions and 25% of employees to lose their jobs. Firing this CEO is necessary but the board of directors of this company should also be fired for not doing their duty to protect the company's employees and shareholders. Corporate accountability is flat out missing in Zillow's executive management in this case!
Apparently AI can't predict the future of homes always going up. Ie, why would they sell in a hurry/and to investors when houses always go up? Might as well slowly sell or hold at higher prices.
Cause they probably bought at a high price and maintenance and other costs rise the longer they keep the property.
@@antoniocolella1445 Should've just rented it out. Make the whole world their apartment complex but they wanted near instant money+data instead.
It's kind of amazing that with prices going up so fast Zillow couldn't make money. In hot markets flippers make most of their money on appreciation with the longer the flip takes the more they make.
Contractor costs and inventory issues. Plus they were over paying drastically
Not necessarily.
Wow, cringing while I watch this guy! Sorry not sorry
Maybe I'm a victim of Dunning-Kruger, but the pricing algo Zillow shows on their site always seemed to overprice houses. At least in my market. It seemed obvious to me their algo was way off.
Waaaaay off
I consider myself smarter then Zillow CEO Rich Barton, I would not dismantle Zillow Home Flipping Business, but I would Separate it and created as a different company managing it self... Not firing the people...it is a damn simple solution. That anybody can come up with. On the other hand, can anybody compete with Zillow flipping homes. So good they are doing that.
Wall Street has no business in destroying our housing market.
People need homes. These greedy soulless opportunistic predators really belong in prison.
They are dangerous.
Zillow killed its profit margin by 1)hire internal for iBuyer program, and 2) showing sellers inflated zestimates.
Really they couldn’t handle flipping houses. Hard to believe maybe big is not all that great lol lol
real estate is local, and the AI didn't get that message
Zillow is trying to cancel my contract due to this. They are so unethical. They just waisted my time and have put my family under stress.
Some portion of the economy (most? all?) needs to be open to small (mom and pop) operators. Happy to see Zillow and other large behemoths exit industries typically left to small biz and enterprising individuals.
Instead of Employees they should get rid of management including this man.
The term “pirates” comes to mind. Reality is the broadside that sinks their ship.
If you watch HGTV, most of their flippers have changed what they do now. They're focusing on remodeling home already occupied by homeowners but what to remodel. That's when I knew something was about to burst in the housing market.
He has made his money and now set for life.
Thanks for the free money on puts
Everyone (but Zillow it seems) knows Zillow can't tell us the current price, much less the price 6 month from now. Unfortunately, the CEO believed their own BS.
he believed the AI bs
@@angelaj8958 Their algorithm didn't apply and AI, as far as I've heard. It just matched comps against houses. Anecdotally, in my experience, it doesn't choose comps very well.
How about actual management getting out of the Company?
Zillow sells advertising to real estate agents and brokers based off of the traffic they receive (which is a lot). ... This was how they got started. The over estimate of properties prior to Covid19 was an issue. Now the challenge with upside down with properties under water....now looks like short sales! It's time to see a healthy real estate market.
They got greedy and tried to artificially raise housing prices. Now it’s time to pay the price. Housing prices are over way inflated. 20-30 percent is insane. It’s going to avg out over the next five years, which means for majority of people we won’t be buying but saving, and renting. Good for home owners.
This CEO does not instill confidence. I sold out of Z and put it all in bitcoin and my plan was to get back at some point but I'm not sure now. I really thought Ibuying was the future but the margins are not great.
Please bring in munster and cathy as they have been big proponents of this company. It seems like this fancy AI tool they used couldnt predict anything.
CW is still buying Z.....I don't know what to think of her at this point to be honest. Tesla is at all time highs and her funds are still doing terrible this year
@@method341 people kept saying she was a one trick pony but this shows that her fund isn’t just about Tesla. Her fund will do well moving forward. People were literally just buying every stock she bought so it would shoot up off the news she bought. That was unfair. Now she can buy and hold and let the companies grow into their valuations.
I'm actually happy he admitted Zillow's mistakes. They thought they could predict home prices, they thought they could offer "good" prices, and they missed badly on both.
This is absolutely unacceptable! Rich Barton should be working at Wendy's not leading Zillow into the ground.
Time will tell if this guy is telling the truth and if Zillow is exiting because of a poor business plan or maybe because they finished successfully their role as the carrier in a real estate "dark pool"?!
You are 100%
Zillow is Black Rock
Cant afford to buy a house, prices are crazy high and not worth the house and omg to rent a house here in AZ is killing me my salary is not enough this is insane
Everyone being so critical of a self made billionaire entrepreneur and finding him unconvincing is interesting. Rich apparently founded Expedia & Glassdoor. He’s also on the board @ Netflix and Avvo.
This guy has been very successful & in the tech industry for thirty years and he seems unusually uncomfortable. Makes me think we’re in for a very serious crash….Yes I know his situation obviously but this seems like a canary in the coal mine & his discomfort may tell something more than meets the eye?
Its Silicone Valley. Anything goes.
Zillow just turned Archegoes in the housing market. Would love to see all the speculators end up holding the bags.
Local realtors will be happy
Zillow has borrowed over $1.5 Billion for their Home flipping scheme and just lost $381 Million (Q3) because of it. Oops!
Zillow is the only entity to lose money on homes in the past decade! Real estate is extremely local and can't be predicted or understood by a computer. 2 houses next to each other can be identical on paper but be $100k different in value! That's why you need a local expert!
Made 20k + on Zillow last year and 40k+ on Opendoor profits. It's all about right timing in and out . Playing OPEN earnings and wala 100k + soon. Ibuying isn't for everyone. Cheers to chamath and Eric Wu !
Not smart. He thought he could predict future with narrow margins lol he is funny.
Real assets that we were overpaying for so that we can pass them along to you the new homeowner. :)
I don't understand why they're taking such a loss on these properties. Home prices are still increasing, or at least maintaining their current values. Even if they resold them "as is" they should, at least, break even on them.
theyve overpaid on most of them trying to be the market maker
If Zillow has 3 Billion in cash, they could have waited to offload vs doing a fire sale and taking an accounting writeoff - they are selling ahead of housing crash of their creation. Zillow should investigated for housing market manipulation and the CEO sent to jail.
Damn wish I saw this coming , and we begin a day before the fed talk ..
puts on deck
Morning the homes that have been bought by the folks were not Worth what's folks paid for them , really very sad, hopefully home prices get to where the average person or family don't go over they're heads in high payment that they can't afford, in the long run hopefully all gets better for both seller and buyer,
All their homes selling for less than they purchased, some over -100,000 . What's his definition of appreciation ???
Man he has his resume out to 35 other companies right now. They made a bone headed move based on an arbitrary value that's propped up by a fresh 150-200k NEW realtors pumping listings. He's full of crap and this housing market is far from sustainable at the prices that they've inflated. They, and every other real estate company, have jumped at the opportunity of lower rates and free government money to the population. In a nutshell it bit them in @$$. They had a good run for the investors and that's going to be the story going forward.
Literally everyone talking about Zillow. Marketing 101. Stay relevant. Marketing cost is all it took. Genius 🙌. Buy the dip 💰
He sounds like a used car salesman.
why do all ceos look the same?
Used car salesman makes more money than a new car salesman
@@ericli2936 In this climate, sure! Pandemic and chip shortage really hiked the prices of available cars.
AI is a fantastic tool, but when it malfunctions and there is no self correction you end up like Zillow.
RIP Zillow
It’s Sounds like a big Problem! It’s also seem like other will follow! We’re properties will be upside down!
Zillow thought they could scam and got caught up.
They were pricing out regular folks and it backfired !
it addressed too few customers, wrong idea when sale prices are high, their offers had to be too high. prices got too high for the hedge fund. Cash for realestate was always a low bid, till too many were competing
Vanguard owns Zillow and Black Rock . Vanguard could be taking the loss with Zillow and allowing black rock to sweep up more homes below market for their portfolio then vanguard would take a loss with Zillow as a tax write off for more profits
This explains why houses are so expensive. Dude tried to short squeeze the home buyer
Yep basically
He's a greedy piece of sh*t and he's privy to info that we're not, there is no way in this market you can't make money in property which means he knows something's coming and it getting out ahead of time.
Hi Realtor here 🙋🏽♀️ I’m licensed in 2 states and work across multiple markets. homes are expensive because of the basic economic law of supply and demand. There is not enough supply to meet the bottlenecks demand on homes. There are multiple factors contributing to this but the number one reason is boomers vs millennials. Boomers are living longer and staying in their homes longer, but those who do sell and are buying a replacement property can afford to do so with cash as the owned the home they sold free and clear of any mortgage.
Millennials on the other hand are either fresh out of college, with astounding debt, starting families and have smaller budgets & down payments, how can they compete with cash offers? I work with a lot of first time home buyers and my primary focus is buyer education. I educated my first time buyers on current market conditions and help them get into homes. Every buyer and seller has unique situations and AI buying technology can’t provide the level of catered service Realtors provide. Real Estate is not one size fits all.
@@Thyalwaysseek Hello Realtor 🙋🏽♀️, I’m licensed in 2 states and work across multiple markets. The COE is not privy to information. Realtors and General Public also have access to the same information. The issue here is that AI technology made an attempt to band-aid over the real estate market and attempted to create a “one size fits all”, and like he said “predict 6mo in the future”. You can’t predict the future. The market changes so quickly, Realtors have to stay on top of it.
I’ve heard the old & and tired “but Zillow’s Zestimate says my home is worth more than what you are saying” and my response is “unless Zillow has walked through, and seen the condition of your home and the neighborhood first hand; if Zillow has pulled comparable properties, contacted those listing agents and really studied how your home compares to those that recently sold in your area, I can honestly say that zestimate is 100% incorrect”.
The main focus of my business is education, both buyer and seller education. I come prepared with data, charts and information so that my clients can make realistic decisions.
@@krystalseeley8341 Thank you for offering clarity on the current state of the housing market.
He seems like still learning how to run home buying business.
He bid up the prices and crashed the company. There should be a rule if a company lays off more than 10% of the workforce, a CEO does not get paid and the previous two years of compensation bonuses are clawed back.
He is so full of it he got into that in order to drive the prices up now he is going to be stuck with them 😂
I hate to judge a man off one interview here, but I also hate to see an American CEO make such a crucial mistake. I flipped a home first quarter this year here in Dallas. I put it on the market in May after renovations and it sold in 48 hours for 30k above asking… I knew then and there this isn’t sustainable. Myself being a low level investor saw the red flags how couldn’t a CEO of a real estate tech firm?
And to add to that I saw reports that they were paying 65k above asking?! Holly crap whoever approved this and even implemented the plan should be … fired.
@@salinascgs The plan was to corner in demand markets. Thankfully it didn't work.
How can you not make money from buying homes in the last year?!?
Globally, every real estate market has been going up
Hahahahaha! he is blaming it on Covid.. wow!.. The Chutzpah is amazing
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I cannot see why a company of this size would go into flipping houses. It seems far fetched to me. As far I could tell Zillow was a pretty solid business. Having a percentage of houses you flipped made some sense. In the weird market it has been seems risky to me. Where I live everybody and his brother is flipping houses. For those of us who live in an old houses it could have worked for us if they had not driven us trying to buy them
Millions are crumbling... I can see it in his face. A quarter of his work force gone like that.
Who does business "On the Bet!" On the bet of projected home value increase? If Zillow would have have had a property management division for property rentals they could have moved a bunch of these properties over as rentals for 3 to 5 years & sell when the margin was right. Seems like lack of long term planning & not having a complete business model.
I wonder whether it's just the potential accusation of anti trust and big tech dominating everything in our lives that stops Google not going into P2P or B2C property business. With what they have including Google Map, it might be a matter of interest on Google's part whether to have such a product or not that will instantly wipe out market share from existing players like Zillow.
This guy oozes "I'm never wrong" vibes. Yikes.
First they ignored Opendoor, then they laughed, then they copied them, then they lost.
Monkey see, monkey do hahaha😂😂
So, that was the reason why housing price went up so much over last year. I thought it just inflation due to Fed printing trillions of dollars. Now, I have already saw the housing prices to do down quite significantly over last month.
When you're losing an average of 30k per house flip ("up" from 75k in 2018) they're quitting while they're "ahead".
Should I invest on quitters?
Cutting losses b4 they become enormous.
They bought all those houses at the top. At least flooding the market with all those homes will lower prices and give buyers more inventory.
Zillow deserves all the pain it's getting... I'm living in my van after selling because my husband passed away and there's nothing to buy. The last 3 properties I have called about in east Tennessee are Zillow owned. They have 7 thousand homes this quarter. Likely every quarter. That's 7 thousand folks and families every quarter that Zillow's greed took away their chance to house themselves.SCREW YOU ZILLOW!
Zillow's board gonna fire this guy. Zillow stumbled big time. The value of Zillow's data is now in doubt. He's blaming covid? Hahaha ... he's fired.