usctrojancpa
Well-known member
Ready2Downsize said:
Is it me or was the Phoenix area the testing grounds for these iBuyers? I remember reading that's where Opendoor, Offerpad, and Zillow started.
Zillow stop buying homes (for now)
- Thread starter eyephone
- Start date
NEW -> Contingent Buyer Assistance Program
Is it me or was the Phoenix area the testing grounds for these iBuyers? I remember reading that's where Opendoor, Offerpad, and Zillow started.
They outsmarted themselves and now will pay the price (literally). I hate Zillow, they call me like once a week pestering me to pay for advertising on their website. I've told them they have need me more than I need them and would hang up most times but a few times I asked them if they can guarantee that I would see a return on the proposed advertising spend...I got nothing but dead air and crickets with that question. Trying to sell a sales guy, huh? hahaha
Could be. That area you can still find houses that will break even renting them because rents have gone up so much. Used to be that anyone could save up enough for a down payment and buy a house but that is over.
I don't know what is going to happen down the road to people who are renting and have little saved for retirement. One spouse dies or has major medical issues and there goes half the social security. Already people are having a hard time when their leases come up. I think there is a big huge problem brewing.
Next time they call you, tell them. Hell Yeah, I would love to put my name on Zillow. How much will you pay me?
Yeah, looks like the large rental company vultures will pick up the remaining homes that Zillow has so no additional inventory for sale because rents are also increasing.
The CEO set a goal of 5,000 purchases per month. The only way to achieve that was to overpay for homes, so this really isn't the algorithm's fault per se. He was trying to implement the high growth model that tech companies follow, which is forgoing profit in the quest for rapid growth and market share. It works when you have a deep pool of capital and committed investors willing to sustain losses for many years, but it doesn't seem that Zillow had the financing they needed or a very well thought out plan.
Nothing to see here, they are going BK.
Not sure who manages running comps for them but it's almost as if they are pricing it off comps that closed 3-4 months before the listing. Then these listings linger on the market and send up selling way less than what they paid for the homes.
Is it me or was the Phoenix area the testing grounds for these iBuyers? I remember reading that's where Opendoor, Offerpad, and Zillow started.
usctrojancpa
Well-known member
Liar Loan said:
They outsmarted themselves and now will pay the price (literally). I hate Zillow, they call me like once a week pestering me to pay for advertising on their website. I've told them they have need me more than I need them and would hang up most times but a few times I asked them if they can guarantee that I would see a return on the proposed advertising spend...I got nothing but dead air and crickets with that question. Trying to sell a sales guy, huh? hahaha
Ready2Downsize
Well-known member
USCTrojanCPA said:
Could be. That area you can still find houses that will break even renting them because rents have gone up so much. Used to be that anyone could save up enough for a down payment and buy a house but that is over.
I don't know what is going to happen down the road to people who are renting and have little saved for retirement. One spouse dies or has major medical issues and there goes half the social security. Already people are having a hard time when their leases come up. I think there is a big huge problem brewing.
Ready2Downsize
Well-known member
Ready2Downsize said:
usctrojancpa
Well-known member
Sell out of the money puts n let the price come to you.
Cornflakes
Active member
USCTrojanCPA said:
Next time they call you, tell them. Hell Yeah, I would love to put my name on Zillow. How much will you pay me?
Pretium Partners picks up 2,000 Zillow homes to kick off iBuying wind-down
https://therealdeal.com/2021/11/10/...0-zillow-homes-to-kick-off-ibuying-wind-down/
I expect Zillow to do more large offloads like this instead of selling it back to the market. This isn't doing new buyers any favors as inventory is still locked up.
https://therealdeal.com/2021/11/10/...0-zillow-homes-to-kick-off-ibuying-wind-down/
I expect Zillow to do more large offloads like this instead of selling it back to the market. This isn't doing new buyers any favors as inventory is still locked up.
usctrojancpa
Well-known member
Cares said:
Yeah, looks like the large rental company vultures will pick up the remaining homes that Zillow has so no additional inventory for sale because rents are also increasing.
Liar Loan
Well-known member
Goriot said:
The CEO set a goal of 5,000 purchases per month. The only way to achieve that was to overpay for homes, so this really isn't the algorithm's fault per se. He was trying to implement the high growth model that tech companies follow, which is forgoing profit in the quest for rapid growth and market share. It works when you have a deep pool of capital and committed investors willing to sustain losses for many years, but it doesn't seem that Zillow had the financing they needed or a very well thought out plan.
sleepy5136
Well-known member
Zillow's zestimate algorithm was incorrectly projecting future home prices. The ML model they had was fine until management started asking for manual overrides to screw things up. So I guess in a nutshell, bad management is the true cause of Zillows downfall.
Liar Loan
Well-known member
tic, tic, tic...
As IHO astutely pointed out, listening to me could have saved $1 billion.
www.inman.com
As IHO astutely pointed out, listening to me could have saved $1 billion.
Opendoor CEO and president out as iBuyer shakes up executive team
Weeks after it reported losing nearly $1B in Q3, leading iBuying company shook things up as founder Eric Wu was replaced as CEO by CFO Carrie Wheeler, and the president has resigned
Opendoor CEO and president out as iBuyer shakes up exec team
Weeks after it reported losing nearly $1 billion in the third quarter, leading iBuying company shook things up as founder Eric Wu was replaced as CEO by CFO Carrie Wheeler, and the president has resigned.
www.inman.com
usctrojancpa
Well-known member
tic, tic, tic...
As IHO astutely pointed out, listening to me could have saved $1 billion.
Opendoor CEO and president out as iBuyer shakes up executive team
Weeks after it reported losing nearly $1B in Q3, leading iBuying company shook things up as founder Eric Wu was replaced as CEO by CFO Carrie Wheeler, and the president has resigned
Opendoor CEO and president out as iBuyer shakes up exec team
Weeks after it reported losing nearly $1 billion in the third quarter, leading iBuying company shook things up as founder Eric Wu was replaced as CEO by CFO Carrie Wheeler, and the president has resigned.
Nothing to see here, they are going BK.
sleepy5136
Well-known member
Opendoor bought these two homes around my area:
Purchased by Opendoor for 1.094m. Listing for 1.048m
https://www.redfin.com/CA/Lake-Forest/236-Siena-92630/home/182956332
Purchased by Opendoor for 1.034m. Listing for 1.065m
www.redfin.com
Good luck selling those for these prices! An attached condo went into escrow for 949k down the street.
Purchased by Opendoor for 1.094m. Listing for 1.048m
https://www.redfin.com/CA/Lake-Forest/236-Siena-92630/home/182956332
Purchased by Opendoor for 1.034m. Listing for 1.065m
381 Bellver #13, Lake Forest, CA 92630 - 3 beds/3.5 baths
(TheMLS) Sold: 3 beds, 3.5 baths, 1711 sq. ft. townhouse located at 381 Bellver #13, Lake Forest, CA 92630 sold for $1,000,000 on Jun 20, 2023. MLS# 22-222961. Come see this charming home now on the market!...
Good luck selling those for these prices! An attached condo went into escrow for 949k down the street.
usctrojancpa
Well-known member
Opendoor bought these two homes around my area:
Purchased by Opendoor for 1.094m. Listing for 1.048m
https://www.redfin.com/CA/Lake-Forest/236-Siena-92630/home/182956332
Purchased by Opendoor for 1.034m. Listing for 1.065m
381 Bellver #13, Lake Forest, CA 92630 - 3 beds/3.5 baths
(TheMLS) Sold: 3 beds, 3.5 baths, 1711 sq. ft. townhouse located at 381 Bellver #13, Lake Forest, CA 92630 sold for $1,000,000 on Jun 20, 2023. MLS# 22-222961. Come see this charming home now on the market!...
Good luck selling those for these prices! An attached condo went into escrow for 949k down the street.
Not sure who manages running comps for them but it's almost as if they are pricing it off comps that closed 3-4 months before the listing. Then these listings linger on the market and send up selling way less than what they paid for the homes.