A couple weeks ago, Zillow® announced it was ending Zillow Offers, their iBuying platform; in the video below, Jeff discusses iBuying and what likely happened at Zillow:
If you go to Zillow’s website and click on the Zillow Offers section today (11.26.21), you are greeted with the following message:
“Zillow Offers is winding down, which means we are not making any new offers on homes. We’re focused on helping existing customers and selling our remaining inventory. If you’re looking to sell, we can connect you with an expert agent in your market. If you have questions about a current contract with Zillow Offers, get answers at Offers & Closings.”
While the CEO might cite things like market unpredictably and balance-sheet volatility, we think it really came down to Sellers not willing to trust an algorithm versus the open market. For most people, their home is overwhelmingly their largest investment and it seems Zillow underestimated how willing they were to gamble a portion of that money on the promise of a slightly easier transaction/process.
It’s hard to imagine betting your life savings on a Zestimate; sure, Zillow might be correct on property values some of the time, but even a broken clock is right twice a day.
In the end, people wanted to ensure that they were getting a fair amount for their home, and for now, the only way to know for sure is to list your home and let potential buyers (ie more than one entity) determine the value. Because at the end of the day, your home is only worth what someone is willing to pay for it, despite what an algorithm computes.
Curious to hear more of our thoughts on this topic? Let’s chat! Connect with Lou & Jeff for the details.
Lou Bitove & Jeff Bortnick, owners of The New Home Experts®, have more than 35 years combined experience in real estate, much of that with builders like Pulte & Toll Brothers. They also provide market research for area builders, developers and national firms. If you’re considering a new home, remember: the builders rep represents the builder, not you. Work with the only local agents in Metro Detroit to specialize in new homes, and save money in the process – ask us how!