Zillow Is Quitting the Home-Flipping Business

Robert59

Robert59

Well-known Member
Location
Now I live in Tennesee. Did live in Michigan.
Company is laying off a quarter of its staff.

Zillow has decided to cut its losses and get out of the home-flipping business, which it described as "one-click nirvana" when it expanded the "Zillow Offers" operation earlier this year. The real estate company said Tuesday that it is shutting down Zillow Offers and laying off around a quarter of its 8,000 employees. The New York Times describes the announcement as as a "black eye" for chief executive Richard Barton. Two weeks ago, the company said it was going to pause buying homes until the end of this year because it had a huge backlog of renovations and was dealing with supply and labor issues, the AP reports.

https://www.newser.com/story/312932/zillow-is-quitting-the-home-flipping-business.html
 

My husband owned a house that was bought by a flipper (that sounds strange - not a dolphin). All they did was paint it, outside and inside, put in a new kitchen floor, and turn the playroom into a garage (making it a 2-car garage). They totally did not fix any costly problems, such as replacing 19 windows, rerouting and replacing the horribly designed plumbing system, fixing the problems with a/c and heat distribution throughout the house. I bet the buyers were astonished when they discovered these major expenditures that needed to be made.
 

Love your thought provoking threads, Robert. I think the challenge is that real estate has become so scarce in so many areas that it is not uncommon for people to get caught up in bidding wars. Zillow simply could not sustain their business model of assessing home values.
 
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