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And $150k is how much of the house? Needs some more numbers so we can get an idea of the scale of overpayment.

Because if they're just off a few percent, I don't know why Zillow wouldn't just hold on for a bit.



>as of October 27. Out of 224 homes, 208 — or 92.9% — were priced below what Zillow paid.

>36.5% were listed for less than the company first paid for them from the outset.

So these are ZillowBots numbers in Phoenix. They start off with a third going for less than they payed. The rest "hold on for a bit" and slowly the price keeps dropping

Eventually there are so many price drops where 93% of the homes are on the market (so, even now, not even sold) for less than what ZillowBot thought was a good idea

source: https://www.businessinsider.com/zillow-offers-ibuyer-sell-ph...

so 2/3 of these houses go with the "hold on for a bit" strategy then fail

I don't live there, but from the outside it seems like the Phoenix market is on a downwards trend, and they chose horrible timing, or really bad algorithm coding


Carrying costs. Electricity, landscaping, water, sewer, city taxes, etc.




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