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Zillow Seriously Miscalculated


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2021 Sep 18, 9:20pm   3,602 views  129 comments

by Malcolm   ➕follow (0)   💰tip ($0.10 in tips)  

Zillow's new business of flipping houses may have created this recent price surge in California. Unfortunately, that means that they have to be the high bidder in bidding wars. It is a very dangerous business model to be such a large player in a self perpetuated price bubble. I am seeing major discounting in San Diego and this example could signal a real problem for Zillow.



Note the current asking price. Note that it is a Zillow owned home.




Note what Zillow paid for it on July 9th.




Now note what they listed it at, the prices changes, and the current asking price.

How many million dollar homes can Zillow afford to buy, to rehab, and then to sell for less than they paid for it in the first place?

« First    « Previous    Comments 107 - 129 of 129   

107   Malcolm   2021 Nov 3, 3:35pm  

My all-time favorite real estate quote: “We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility,” said CEO Rich Barton in a statement.

https://therealdeal.com/2021/11/02/zillow-calls-it-quits-on-ibuying-will-lay-off-25-of-staff/

So, that begs the question. If Zillow can't forecast home values, isn't that a problem for those who rely on Zillow forecasts?
108   Booger   2021 Nov 3, 3:55pm  

$65.47/sh -21.73 (-24.92%)
At close: 4:00PM EDT
109   Patrick   2021 Nov 3, 3:57pm  

Wow.
110   mell   2021 Nov 3, 11:00pm  

Zillow bought houses in shit areas for shit prices cause their "AI" told them so. This is not a red flag for the real estate market, it just once again proves how much better humans are at activities that require instinct such as house flipping
111   Malcolm   2022 Jul 25, 4:50pm  

Seattle-based Zillow faces another shareholder suit over failed house-flipping business

https://www.seattletimes.com/business/real-estate/seattle-based-zillow-faces-another-shareholder-suit-over-failed-house-flipping-business/

It looks like this is going to keep haunting them for years.
112   cisTits   2022 Jul 25, 5:13pm  

Looks like we now know where our PatNet 'housing experts' work.

Er,...worked.
113   Patrick   2022 Jul 25, 5:47pm  

Thanks @Malcolm

I'm happy to hear that Zillow is still going downhill. I did not enjoy working for them, especially not after they figured out that I'm the patrick.net guy.
114   cisTits   2022 Jul 25, 5:50pm  

Patrick says

I'm happy to hear that Zillow is still going downhill. I did not enjoy working for them, especially not after they figured out that I'm the patrick.net guy.


You worked for them?

Did they fire you?
115   just_passing_through   2022 Jul 25, 7:48pm  

Patrick says

especially not after they figured out that I'm the patrick.net guy.


What was THAT like? haha
116   Patrick   2022 Jul 25, 7:49pm  

Yes, I was ultimately fired, no reason given. But I knew.
117   Patrick   2022 Jul 25, 7:50pm  

just_passing_through says


What was THAT like? haha


It was fun at first, like being a secret agent. But later it was just uncomfortable.
118   Malcolm   2022 Jul 25, 10:11pm  

Patrick says

I'm happy to hear that Zillow is still going downhill. I did not enjoy working for them, especially not after they figured out that I'm the patrick.net guy.

Awkward!!!!!
119   Malcolm   2022 Jul 25, 10:12pm  

Patrick says

Yes, I was ultimately fired, no reason given. But I knew.

When was that?
120   Patrick   2022 Jul 28, 4:42pm  

2017
121   Booger   2022 Jul 28, 4:47pm  

Patrick says

Yes, I was ultimately fired, no reason given. But I knew.


How did they find out?
122   Booger   2022 Jul 28, 4:48pm  

Patrick says

Yes, I was ultimately fired, no reason given. But I knew.


Congratulations! I figure that there is probably something wrong with you if you haven't been fired at least once!
123   Booger   2022 Jul 28, 4:50pm  

Zillow down to 34.69 / sh.
125   RWSGFY   2022 Sep 29, 9:42am  

zzyzzx says




They did shut it down many months ago.
126   stereotomy   2022 Sep 29, 10:03am  

RWSGFY says

zzyzzx says





They did shut it down many months ago.

Did they shut it down, or just turn it clockwise (to tighten, instead of loosing).
127   Eric Holder   2022 Sep 29, 10:58am  

stereotomy says

RWSGFY says


zzyzzx says






They did shut it down many months ago.


Did they shut it down, or just turn it clockwise (to tighten, instead of loosing).


Shut down as in "fired everybody involved in".
128   zzyzzx   2022 Oct 26, 11:28am  

https://techcrunch.com/2022/10/26/zillow-layoff-300-employees/amp/

Zillow lays off 300 employees in latest workforce shift

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