Zillow announced they are shutting down their iBuyer program (in which they act as the primary buyer and seller of homes) because, quote, “[they have] been unable to accurately price homes.”
The company lost $328 million during the third quarter of 2021, and virtually all of those losses were from iBuying. This will also force Zillow to reduce their workforce by about 25%.
The moral of the story? Don’t trust Zillow to price your home. Far too many homeowners have been misled by their notoriously inaccurate Zestimate. If Zillow can’t even accurately price homes they are buying and selling, there’s little reason to believe their algorithm will be any more accurate in a sight-unseen estimate of your home.