Notes

Zillow Buying Homes Like Nobody's Business
When Bán đất Khu đô thị Mỹ Gia Nha Trang gói 5 roared back to life during the Covid-19 pandemic, Zillow began buying homes like nobody’s business. It poured more than $1 billion into Zillow Offers, its tech-enabled home-buying program, betting that it could make big profits by mass purchasing houses and doing some light renovations to turn them around for resale.

But flipping homes this way isn’t exactly the most stable business model, especially when you’re doing it on a large scale during a housing boom. So, in November 2021, Zillow decided to shut down the iBuying division and lay off 25 percent of its staff—among them the bots that overpaid for thousands of houses this summer.

It didn’t help that the company was doing this during a period of shaky economic growth and tight labor markets. It also didn’t help that it was losing money on some of the properties it bought and sold. But most importantly, it didn’t help that the iBuying business reached only a small sliver of the overall real estate market.

The way it works is pretty straightforward: You sign up with the Zillow Offers app and provide a few basic details about your home and what you want in a new one. Then a local representative will take a tour of the property, do some research, and send you a cash offer for your home. You can then accept or reject the offer and decide whether or not you’d like to work with a professional contractor to undertake some repairs. If you do, your local Zillow team will schedule an onsite inspection and provide you with a revised cash offer for the house. Then, if you accept the revised offer, you’ll get a loan from Zillow Home Loans and close on the home within seven to 90 days.

If you don’t, the house will go on the open market and you’ll pay a standard buyer’s agent commission. But what if you just want to move in right away? Zillow can help with that, too, by listing the home and putting it in a “move-in ready” program where its contractors will handle all the cosmetic upgrades.

But, as Bán đất Khu đô thị Mỹ Gia gói 6 points out, it’s still not a great idea for people who aren’t planning on moving in the near future to get involved with this type of iBuyer. It smacks of the high-risk mortgage issues that helped fuel the financial crisis nearly two decades ago, and it creates an incentive for low-income buyers to borrow too much.

Zillow knows this and that’s why it’s already shifting its focus to a new product: a real estate super app, which will connect potential buyers with local agents and lenders. But even that shift is a bit of a risky proposition—if the housing market crashes again, it will leave Zillow with far fewer customers to serve and more losses to swallow.
Website: https://nhadatmygianhatrang.com/nha-dat-my-gia-goi-6/