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MineralMan

(146,192 posts)
2. That's not surprising, actually.
Thu Nov 4, 2021, 09:55 AM
Nov 2021

They were operating during the peak of sales of existing homes, and were paying top dollar for houses, and without checking them out carefully. Then, as the market cooled a little, they were literally left holding the bag on many of the places they bought.

Flipping houses is a very, very difficult business to be in. Often, houses need considerable work to be completely salable. Successful flippers are good at inspecting houses and estimating the cost of getting them ready for sale at a profit. Zillow jumped in and did it all wrong, like some inexperienced flippers often do. So, they ended up with houses that were not immediately salable and that they had paid too much for to make a profit after the necessary rehab costs.

Zillow was counting on a market where prices were going up quickly. That didn't work out for them, and they had to compete with local flippers to buy them, all in a market that saw houses selling almost instantly for asking price or even more.

Now, they're stuck with their poor purchase decisions.

Too bad...

Good genxlib Nov 2021 #1
That's not surprising, actually. MineralMan Nov 2021 #2
Ha! I thought that they were expert predicters? nt JanMichael Nov 2021 #3
Boom enid602 Nov 2021 #4
better ask onethatcares Nov 2021 #5
I don't know about that jimfields33 Nov 2021 #6
Check out this condo Mosby Nov 2021 #7
Sunnyslope enid602 Nov 2021 #8
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