Zillow's House Flipping Disaster Explained

There is nothing wrong with no growth company. When a company reaches its max growth potential, it should enjoy collecting its profit and pay out dividends. Why engage in risky venture?

God is GREAT🙏✝️👏👏 The greedy big corporate lost their ass🖕👏👏 They tried to get rid of realtors and home inspectors 🤯😂🤣 Look what happened 🙏❤️⚖️🎉

Flipping houses? They were watching too much HGTV.

"Pride goes before a great fall." -- God

The American Dream is to own a house eventually turning into a home. Zillow came in and turned it into a more profit into their pockets and big time greed. When avarice comes into play all bets are off, not surprised 😮 this happened.

It's AI fault. The CEO should fire the Zillow software engineers.

Like anything else, reality TV has made house flipping look simple; a loving couple with a high school education can turn a profit. Any problem is overcome in the final minutes of the show.

I have to wonder if someone from Zillow watched too much television and decided to try it on a grand scale. I can't imagine what dim wit thought it was a good idea to risk investor's money in such a risky venture.

There are 16 empty and abandoned homes for every homeless person in Amerika. The only reason homes have any capital worth is because of parasites like landlords and house-flippers creating artificial scarcity on the backs of a larger and larger body of desperate, disenfranchised people. I can't wait for it all to collapse. I'm going to enjoy the taste of billionaire flesh.

what a terrible idea. companies sometimes need to stay in their lane and be happy with what they've got, especially considering it wasn't an original idea to begin, it was just taking a tool professionals use that helped add value to their services and basically made it public on the interwebs.

why do these guys always have a weak face like an emotionally damaged wimp whose motivation in life is to get revenge on the people who makes them feel inferior? zuck, bezos, gates... they all stink of the same rot. anyhoo, when ignorance and arrogance collide it's the investors who suffer.

i've never understood how these laughably bad ideas to even regular folk are acted upon. i understand when plausible ideas are just mishandled. i understand when ridiculous influences makes you go tits up. what i'll never understand is when an entire group of 'educated' pencil-pushers ignore the giant flashing neon sign on the wall give their thumbs up.

oh, i think the idea could have worked to a certain extent if they spent the time building it up over several years and shown that their work was of good quality.

They screwed up the market. Not only did they buy house and overpriced them driving up prices everywhere. Now most regular people can't purchase home they normally can. I saw a house purchased for 200k and a few months later listed for $430k. Insane.

So your telling me 2 Microsoft guys started Zillow……….. This is a game to them. They are purposefully playing the market, and everyone else.

“the difficult business of predicting housing prices”. that’s a funny spin.

ヤバいですね。

This is obviously in hindsight but shouldn't they have ran the system for a while without actually buying any houses then compare the prediction of the system versus the actual sales prices?

This happened because Donald Trump loosened regulations which allowed it to happen in the first place

Was Zillow responsible for the decrease in inventory? Were they responsible for the increase in house prices due to the low inventory?

your voice!! alex I'll take monotone for 800

Can't give an accurate value in real time, was going to predict values six months from now. Lmmfao.

And i was watching these shitty homes getting flipped and everything looks cheap from the paint to the cabinets to the bathroom , its look soo awful...

They should know the ying & yang principal: follow the Enron playbook. Don’t flip by itself. Fund a few competitors. 🤩👌

Wanna be a millionaire? Easy. Buy any house, upgrade the electric, install a 50amp charge port near the vehicle parking. Resell it with EV ready as a tag line. Done. Seriously go look for EV ready homes... they are almost nonexistent.

i think they didnt go big enough. i dont think people should sclae house flipping but if you are going to you need to own/secure inspectors and renovators and a set price . if you cant there is no point

How about we use homes as a form of shelter instead of a game chip at a casino?

My home value went up 30% but that's less than nothing when you account for inflation.

is anyone else wondering what will all those houses do when unleashed in the market? theyre just sitting on hundresds of thousands of houses and as they get desperate prices will drop. Will it combined with all the current economic issues cause another housing market crash?

their hubris also helped drive up home prices artificially in certain markets, hurting consumers - now local property owners will be hurt as Zillow unloads their properties at fire sale prices, driving down prices on comps. I hope they face many lawsuits!

Or did they try to drive up neighborhood home prices by buying houses in large numbers, leading to reduced supply and higher demand? 😒💫

Wait wait wait wait, they had bots, just buying thousands of houses based on an algorithm? Full send minimal supervision? I gotta tell you fellas this is insanity.

There's no explanation..
It's was a scam on the ppl and again no one will do anything about it.

It doesn’t take a genius to figure out that this plan wasn’t going to work

What could go wrong when a large company buys house to speculate...

Good name. Sound like pillow.. soft and harmless

Their algorithm and the people who created it chose the wrong data. If someone chooses the correct data then it would be successful.

The only problem with this business is management. Managing repairs on a house is damn near impossible unless you have a person physically there to ensure that subcontractors are doing what they’re suppose to do and not wasting your money. Basically babysitting. You can’t expect someone in Seattle to manage a project in North Carolina. This why real estate is different than paper assets and is hard to implement technology and automation.

It’s like the Zillow CEO went to one of those free real estate seminars back in 2018 and got hooked

I have to say, flipping houses is inherently a problematic business for the economy regardless of the scale you do it on. House prices should be a function of what goes into making the house (the materials), where the house is situated (the land) and what the purchasing power of the local population is (economic potential of the area). Assuming the economic potential of the area is stable (which it is in most places with slight variation) and assuming a relatively stable land valuation (which in principle it should be with slight variations), the whole business model simply doesn't make sense on the long term because people don't become richer enough over night to buy these houses in the area if you renovate them too much and still need to make a profit on them and assuming you bought at fair market value. 2 things can happen, either a richer population needs to move in with little economic incentive (because of the stability of the local economic potential) which is unsustainable or you eventually lose your client base when you put too much inflationary pressure on the market, which is unsustainable because you will lose your business and accumulate too much debt in the process of buying houses. This whole industry has the potential to create bubbles and tank the housing market if left unchecked. Investing in housing should be illegal or heavily taxed into oblivion to discourage it.

Zillow thank you for interfering in my business. Now stay in your lane. Love how society thinks I'm unskilled labor.

They got greedy

Now Zillow has to make commercials with gays in them? Time to boycott them also. This is getting ridiculous already.

Models would be only one factor. Buying a property that you can sell in 6 months for a big profit requires an extremely hot market. These are infrequent in history, don't last very long (5 years maybe max) and end rather suddenly. Even with a good model you can get stuck with a lot of properties when the down turn happens. Real estate has traditionally been only profitable when held long term.

House flipping contributes to inflation.

A 2007 University of Texas at Arlington study quotes researcher Ada Focer, who states that flipping homes has a harmful effect on housing prices: As the price of flipped homes goes up, other sellers raise their prices, which can result in a low-income neighborhood with affordable housing becoming much more expensive.

They were better off financing deals like a bank instead of flipping homes LOL.

Real estate is a boots on the ground type of business where agents can help protect the client.

Growth at all costs reaching it's inevitable conclusion in my opinion.

El tema es fenenal me gustó mucho bravo q temaso

"Click here to add $10M mansion to your shopping cart."

Love it!

Wait so in the USA if you want to buy a house you have to hire an agent?? weird

I hate Zillow

Trying to predict the future was his first mistake