Zillow is moving out of the home-selling business
Zillow has announced that it’s winding down the Zillows Offers program, a day after reports surfaced that it’s selling over 7,000 of the houses it purchased with the intent of flipping them to would-be home buyers. In a press release announcing its Q3 results, the company says that Zillow Offers only served “a small portion” of its customers. CEO Rich Barton now says that “We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.”
With the program shutting down, the company says it’s reducing the estimated value of the houses it’s purchased in Q3 or will purchase in Q4 by more than $500 million….
