Zillow bought up too many houses so now it needs to sell 7,000 of them quickly
The platform is targeting investors, hoping to sell the properties as soon as possible.
Zillow is not only in the business of listing homes for sale by realtors. The platform has also been buying and selling houses for years. Now, the company has bought too many houses so it’s looking to offload around 7,000 houses quickly.
According to a new report from Bloomberg, Zillow is looking to get around $2.8 billion for the 7,000 houses that it is looking to sell. The company is looking to sell the houses to investors, but it is likely that there will be multiple buyers, as opposed to one single sale.
This new revelation comes as the result of a ramp-up in Zillow’s property buying plans. The company uses a high-tech process for buying up properties, known as Zillow Offers.
Potential sellers can request an offer on their house from the company, and if that offer is accepted, Zillow then purchases the home, makes minor repairs, and puts it back on the market.
This led to the company purchasing thousands of properties (more than 3,800 in the second quarter of 2021 and an estimated 8,000 in the third quarter).
It ran into struggles finding labor to renovate and repair those properties that it had purchased, as lingering effects of the COVID pandemic continue to cripple the workforce.
Now, the company is targeting investors and potential landlords, hoping to remove the renovation responsibility from itself. Additionally, it looks like Zillow is trying to get out of the house-flipping business for good, shutting down its Zillow Offers division completely.
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