Have you heard the recent news about Zillow’s iBuyer program? It could have a ripple effect on our real estate market, so let’s talk about it.
Essentially, Zillow bit off more than it could chew. Using their home value algorithm, also known as a Zestimate, Zillow bought up homes all across the country, especially here in Atlanta. Their goal was to sell these homes for a profit, but their algorithm wasn’t as accurate as they initially believed. As a result, they’ve canceled their iBuyer program and are selling off 18,000 homes in the U.S.
“It’s still a great time to buy or sell a home.”
So, how does this impact you? Unfortunately, I wouldn’t plan on getting a great deal from Zillow; after all, they’re still trying to get their money back, and they overpaid in the first place. Even though homes in Metro Atlanta have appreciated an average of 23% year over year, flipping homes isn’t as easy as they thought. You can’t just slap on a fresh coat of paint and mark up the price by 10%.
Despite the bad news for Zillow, our market is still strong. Homes are appreciating, and mortgage rates remain low. Just because Zillow should have stayed out of the market doesn’t mean the same is true for you. Winter is typically seen as a slower time of year for the market, but that means there’s less competition. Meanwhile, people who need to sell during this season need to sell fast.
If you have any questions about Zillow or our market, please call or email my team. We’d love to help you any way we can!