DO YOU REALLY KNOW YOUR REAL ESTATE VALUE?
who have we trusted?
Zillow is now selling thousands of Florida properties in the hot markets. What does it mean for potential buyers, then? Where will this large-scale dump go?
The online house-flipping unit of Zillow has turned out to be a disappointing flop. This left the real estate company with no choice to exit the business, dumping thousands of their own properties on the local estate markets.
The company stated in their letter to shareholders about their plans of selling approximately 18,000 homes that they already own or are under contract through Zillow Offers, their home-flipping business. Zillow also told its investors that they expect to lose around 5% up to 7% on this unsuccessful venture.
The culprit behind Zillow’s downfall is none other than its very own algorithm and the fact that they underestimated the obvious risks of masse home purchase for the purpose of earning a profit through quick sales.
However, even though Zillow was able to purchase thousands of Florida homes at inflated prices for the past few months, there is a very small chance for average consumers to snag these bargains moment the company dumps them in the market. There are several reasons behind these hesitations and second thoughts, and some of these are the following:
actual values determined by manual review