Here’s why Zillow’s home-buying program was doomed from the start.

As you probably know, Zillow is out of the home-buying market; they’re no longer purchasing homes through their Zillow Offers division. There are still plenty of iBuyers out there like this right now, but Zillow is not one of them.

The reason why I want to talk about this is that people have a lot of questions about their Zestimates for me. This news just goes to show that Zestimates are not very accurate. Zillow was losing money hand over fist based on their estimates. Their stock dropped, and they pulled out of the home-buying game.

Algorithms just can’t work in real estate. They're based on numbers and science, but pricing a property is more of an art. The data plays a role, but market conditions, appearance, and marketing make an even bigger impact on a home’s market value. In neighborhoods with lots of different homes, Zestimates are typically way off.

“Zillow was losing money based on their own Zestimates.”

Hiring a great real estate agent who knows the market and can price correctly is key. Zestimates are good starting points, but you shouldn’t be pricing your home based on one.

If you need a true assessment of your property’s value, you can always give us a call or send us an email. We’d be happy to answer any questions you may have.