Zillow is Quitting the iBuyer Business

Have you checked your Zestimate lately? In the past two years our local, state and national real estate markets have seen spikes in value due to a number of factors. COVID-19, limited inventory, low interest rates – you’ve heard about these factors non-stop from our team and media outlets for some time now.

In a market undergoing such a rapid spike, you may be looking for a quick valuation of your home to see where you stand. Zestimates use an algorithmic approach to estimate the value of your property and provide that information to you for free. In turn, their Zillow Offers program hopes to purchase your property and flip it for a profit.

Well… it turns out their algorithmic approach was inaccurate in predicting home values. Really inaccurate.

Zillow Offers is closing its doors and selling off all 7000 of its currently held properties. Zillow estimates a total write-down of over $304 million in homes currently in their portfolio worth less than Zillow’s estimate of future value. Zillow also expects an additional $240+ million in losses on homes it is in the process of purchasing. $544+ million in total losses. In the third quarter of this year alone Zillow sold 3032 properties with an average gross loss of $80,771 per home.

We bring all of this to your attention to exclaim one major point – your home is more than just numbers in a spreadsheet!! Any service, Zillow or otherwise, that claims to be able to evaluate your home without looking at it or comparing it to specific sales in your area is full of crap. Now more than ever.

Conceptually, Zillow Offers was a strong business model. But, without the local insights to compare your home up-market and accurately project value, Zillow dug itself into an investment hole at an average of $80,771 in losses per home.

Our Refresh program aims to do precisely what Zillow Offers intended, only the profit belongs to you! Starting with our free consultation, we will suggest budget friendly renovations that will increase your profit when selling. Our recommendations are based on comparable sales, contracting knowledge, and fair pricing for our work – not a one size fits all algorithm. 

After your consultation, our contracting team will complete your updates in a timely manner so that you can list your home and collect the profits for yourself! After all, updated homes sell faster and for more money. This isn’t a secret. But, before you consider handing these profits to an iBuyer like Zillow, please give us a call!

Our business operates exclusively on referral business. If you know someone looking for reasonable pricing on their paint, flooring or renovations, or are considering buying or selling real estate, please connect us at this referral link!