I'm still trying to wrap my head around the fact that Zillow is selling houses bought through its iBuyer program, Zillow Offers, at a loss in the current market.
I'm still trying to wrap my head around the fact that Zillow is selling houses bought through its iBuyer program, Zillow Offers, at a loss in the current market. Home prices in the third quarter were up inevery state and every metro, posting their largest-ever yearly gain since the inception of the FHFA's House Price Index.
But as Senior Real Estate Reporter Matt Blake notes in his article, titledInside Zillow's misadventures in iBuying, the company's first mistake was paying too much for the houses at the outset.
One example Matt cites was a Phoenix home where "Zillow sized up a house with a listing price of $509,000 that had been sitting on the market for 57 days. The company bought it for $566,000 in late July, or 10% above its listing price. Zillow has since tried reselling the property on Keymar Drive, by listing it for increasingly less than what they bought it for."
Yesterday Zillow announced that more than half of the roughly 18,000 homes it owns have been bought, are under contract, or have an agreement on "disposition terms," but at an expected 5-7% loss. Read all about thathere.
Zillow said Thursday that more than 50% of its remaining iBuying inventory "has sold, is under contract to sell or has reached agreement on disposition terms."
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