The problem seems to be that any homeowner getting an offer from Zillow would immediately know they had mispriced their listing and not accept.
Unless Zillow has some new efficiency that no one else has (super contractors that can fix up cheaper than other investors, low cost capital) I don’t know how they will be able to outbid the market consistently as there aren’t enough dumb sellers with dumb agents out there.
But maybe I’m missing a way how they could use analysis to identify “bargains” without the seller getting clued in and upping their price.
Unless Zillow has some new efficiency that no one else has (super contractors that can fix up cheaper than other investors, low cost capital) I don’t know how they will be able to outbid the market consistently as there aren’t enough dumb sellers with dumb agents out there.
But maybe I’m missing a way how they could use analysis to identify “bargains” without the seller getting clued in and upping their price.