Can I Sell My House to Zillow in Massachusetts?

No — Zillow’s Homebuying Business Just Went Bust. Enter:

Zillow is in a world of hurt. After hundreds of millions in losses, the company finally closed its homebuying program, Zillow Offers.

Now there’s news that management is laying off a quarter of their staff — nearly two thousand people.

That’s understandable considering the economic realties: Zillow now has 7,000 vacant, unrepaired homes worth over 2 billion dollars sitting in its inventory.

And here’s a dirty little secret: most of those homes will never be sold to the public, at least not directly. Instead, they’ll be unloaded in bundles to various big hedge funds and investment firms, likely for pennies on the dollar. Zillow will survive as a data company — that’s always been their bread and butter — but their losses will be staggering nonetheless. Zillow stock has plunged nearly 70% from its peak.

How did Zillow get itself into this mess?

Simple: they overpaid for houses, and they bit off more than they could chew. Scaling a profitable homebuying business is hard enough. But Zillow was “lucky” enough to buy up thousands of homes during a historic labor shortage. In other words, it’s getting harder and more expensive to find contractors, especially the huge supply of contractors Zillow would need. On top of that, we have tons of anecdotes to suggest that Zillow overbid on houses. The result: thousands of unprofitable homes with no equity sitting vacant.

What does Homevisor have that Zillow doesn’t?

First of all, we’re real people making offers on houses. We don’t use fancy algorithms — we have local market experts to make sure we get the pricing right.

Second, we’ve spent years cultivating real, human relationships with contractors, agents, lenders, and others. With those networks already in place, we can scale Homevisor with confidence.

With this historic shrinkage of competition in the professional home-buying space, Homevisor’s value proposition will resonate even more. Our team is excited to capitalize on this opportunity with new growth initiatives in the months ahead. Stay tuned!

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