Why You Can’t Sell Your House to Zillow

This week Zillow announced that it is shutting down it’s home buying operation, Zillow Offers, and laying off 2,000 employees. News of the iBuying powerhouse exiting the market quickly shot through real estate circles. Here’s our take on the news.

First, many of us in the property solutions business saw this coming from a mile away. In many markets, more traditional real estate investors claimed that Zillow has “overpaid” for properties, and it’s been reported that in some cases, they were forced to resell the property for less than the price they paid to purchase. Many of us in the business of buying homes for cash were left scratching our heads, wondering how this could possibly work as a business model. As it turns out, it’s not a good one.

Officially, Zillow claims that volatility in the housing market is reason for their exit from their iBuying operation. This is another head-scratcher for us, but worth noting. In many markets, a shortage of housing supply has driven up home prices over the past 18 months. In the Greater Philadelphia region, homebuyers have faced steep competition when making offers. Nationally, a shortage of housing is expected to continue due to a lack of new home development over the past decade or so. USA Today reported that 5 million new homes would need to be built in order to catch up with demand. While some have feared another housing bubble like the one that caused the 2008/2009 recession, the economic conditions that sparked the last housing crisis are simply not there.

More likely, we believe that what Zillow got wrong was its algorithm. For the same reasons that the trademarked Zestimate is often not indicative of your home’s actual value, it’s hard to buy properties based on an algorithm. As a local property solutions company, we know firsthand that home condition can vary widely from one house to the next, and the after repair value often changes from one block to the next.

If you’re looking to sell your home fast, the good news is, you still can. Even if your home needs repairs or hasn’t sold in the past. We’re still paying cash, closing on your timeline, and guaranteeing that you won’t have to make any repairs or pay agent commissions when you sell your house to us.

Call 267-435-9999 or click here for fast and fair cash offer.