[jmaccallum]

Zillow leaves the iBuyer Segment

Zillow just announced they are getting out of the iBuyer segment where companies offer instant cash purchase deals to sellers. These companies then “flip” the house at a price based on some minor improvements/repairs they do and short term appreciation. The Zillow service was called Zillow Offers. Zillow says they are getting out of that business because the price of homes is too difficult to predict.

Interestingly, Zillow’s “Zestimate” has supposedly been doing that, stating the price for yours and your neighbors homes, for years on their website. Hmmm…

The move is also resulting in Zillow laying off 25% of its workforce, and they have almost 7,000 purchased homes to unload.