It really was Friday 13th for Zillow

By
Real Estate Broker/Owner with Best Practices Realty

Following Zillow's announcement on Thursday that it was getting into the house flipping business, the stock market judged this to be an ill thought out and high-risk venture, punishing Zillow with a whopping 7.31% drop in the stock price (and a further fall in after-hours trading). Evidently, the market (unlike Zillow) understands the clear difference between running a website and generating over a billion dollars in revenue in 2017 from 150,000 real estate agents who were prepared to buy leads generated from MLS data which Zillow obtained for free, and buying homes with the only stated goal of attempting to flip them for a profit. When the real estate market takes a downturn (as it always does), how stupid will Zillow look when their real estate portfolio is upside down? As a further demonstration of Zillow's arrogance or stupidity (probably both), they're planning on borrowing the money and buying up to 1,000 homes before the end of 2018. If interest rates keep going up, as predicted by most experts, there could be some excellent investment opportunities if Zillow is forced into a fire sale! 

Comments (3)

James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Leah.

IMHO Z needs to go away, far, far away.  Maybe to another planet.

Apr 14, 2018 03:47 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Leah... thanks for sharing this. I had not been following Zillow's stock price. It will now be interesting to see how they respond.

Apr 14, 2018 04:28 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Carol Williams my suggestion, Carol, for next week's Second Chance Saturday post.

Apr 14, 2018 04:28 AM