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Recode Daily

Zillow’s over-Zestimate

Recode Daily

Recode

Science, Technology, Society & Culture

4.61.3K Ratings

🗓️ 5 November 2021

⏱️ 15 minutes

🧾️ Download transcript

Summary

A few years ago, the famous real estate tech company Zillow began buying houses. The new venture seemed promising, but the company’s attempt to flip the properties while making life easier for its users has spelled disaster. Bloomberg’s Patrick Clark (@pat_clark) explains what went wrong. Read Patrick’s story here Enjoyed this episode? Rate Recode Daily ⭐⭐⭐⭐⭐ and leave a review on Apple Podcasts. What do you want to learn about on Recode Daily? Send your requests and questions to [email protected]. We read every email! Subscribe for free. Be the first to hear the next episode of Recode Daily by subscribing in your favorite podcast app. Learn more about your ad choices. Visit megaphone.fm/adchoices This episode was made by: Host: Adam Clark Estes (@adamclarkestes) Producer: Alan Rodriguez Espinoza (@ardzes) Engineer: Paul Robert Mounsey Support Recode Daily by making a financial contribution to Vox! bit.ly/givepodcasts Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

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0:39.3

It's Rico Daily. I'm Adam Clark Estus. If you shopped for a new home recently,

0:45.2

chances are you used an app called Zillow. It's one of the most popular ways to find a

0:50.0

house or a new apartment. And for years, the service has been essential for folks trying to

0:54.7

list their house for sale. Recently, Zillow took it one step further. The company didn't just

1:00.8

help people sell their houses. Zillow started buying the houses itself. After all,

1:06.8

selling a house is a lot of work. You have to hire an agent, get an appraisal, do paperwork,

1:11.3

it's a lot of steps. So Zillow said, just sell your house to us. You get money and will worry

1:17.4

about the rest. The company was very bullish on this project. I mean, going back to, you know,

1:22.9

December, it was really all guns blazing. You know, we're growing really fast. That's Pat Clark,

1:29.3

a real estate reporter for Bloomberg, who's been following what started out for Zillow as a

1:33.6

promising business venture. But recent days, it's all come crashing down.

1:43.0

In your reporting, you describe this business as Zillow's home flipping operation. For folks who

1:47.6

don't know, what is home flipping? Traditionally, home flipping has been, you go out and you buy a

1:52.9

house. You rip out the old carpet in, you update the kitchen appliances, you try to sell it for

1:58.4

more than you bought it for. Traditionally, it was a business where you went and looked for people

2:02.2

who were in trouble, you know, somebody who was old and sort of no longer able to keep up with

...

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