Breaking down the reasons why Zillow’s iBuyer program failed.
What went wrong with Zillow’s iBuyer program? Zillow attempted to get a market share by buying houses and reselling them. They lost $880 million in the process.
Zillow has explained that their Zestimate algorithm isn’t accurate and that they used it to buy billions of dollars worth of real estate. Unfortunately for them, they used it to buy billions of dollars worth of real estate at the national level without consulting the local real estate communities. They didn’t find out what the trends were in the market or learn which neighborhoods were better to buy in. Throwing money at the wall and hoping that it sticks isn’t a great way to manage a billion-dollar business, so what’s different when you hire an agent?
Our job is to get you the most amount of money. We know the nuances and trends of the local market. We can give you tips on marketing strategies to set your house up for success. If you want to get the most money, you can’t just put your home on Zillow or the MLS and wait.
Long story short, you can’t simply buy real estate at the national level because it’s a good market, put it back on the market, and expect to make money. You need to know the local trends and marketing strategies. If Zillow had done that, then they could’ve received an average of 104% of their asking prices like our team does.
If you have any questions, don’t hesitate to reach out to us by phone or email. We look forward to hearing from you.