How Zillow's homebuying scheme lost $881 million
They failed in the same way as my bad fantasy football team.
“This became a real problem last year, as it failed to manage a volatile market. With fast-rising real estate prices early in the year, Zillow’s offers weren’t competitive enough. They changed the algorithm to bid more aggressively, and ended up with too many aggressive winning bids just as the market began to soften. Ironically, while Zillow's business model was premised on being patient, the company itself showed remarkable impatience.”Posted on 2022-03-19T04:57:34+0000