In case you haven’t heard the news, Zillow is no longer buying homes. What happened, and why didn’t their program end up working? Zillow was using their algorithm (the “Zestimate”) to determine which homes made sense for them to buy. They were buying a bunch of homes they thought were a good deal, and would refer the rest of the homes to real estate agents. It would have been a great business model, except for one big flaw – An algorithm can’t replace a human being!
It turns out that Zillow isn’t that great at valuing homes. This is a little crazy considering how big the “Zestimate” is to Zillow’s brand. From our experience, the Zestimate is an okay place to start to get an idea of market conditions, but nothing can truly replace an experienced agent actually seeing your home in person.
The main takeaway for you is that an algorithm can’t replace a good Realtor. There are other “I-Buyers” out there who want to buy your home, but based on this Zillow news, we’re not sure how much you can trust them. Buying or selling a home is a big deal; don’t leave it up to a computer!
