Here’s what you need to know about Zillow’s recent news and what it means.
In case you haven’t heard, Zillow is canceling its home-buying program. What happened, and why didn’t their program end up working? Let’s talk about it.
Zillow was using their algorithm to determine which homes were a good deal. If you’ve ever used their Zestimate feature, it’s the same system. They would come into an area, snatch up all the homes they thought were a good deal, and refer the rest of the homes to real estate agents in the area. It would have been a great business model, except for one big flaw.
An algorithm can’t replace a human being. “
It turns out that Zillow’s algorithm isn’t that great at valuing homes. This is a little crazy considering how big the Zestimate is to their brand. In our experience, the Zestimate is an okay place to start, but nothing can truly replace an experienced agent seeing your home in person. Zillow lost a ton of money, and their stock price has tanked.
The main takeaway for you is that an algorithm can’t replace a human being. There are other iBuyers out there who want to buy your home, but based on this Zillow news, we’re not sure how much you can trust them. Buying or selling a home is a big deal; don’t leave it up to an algorithm.
If you have questions about the Zillow news or anything else related to real estate, please call or email us. We are always willing to help.