#FLORIDA KEYS HOMES FOR SALE ZILLOW PROFESSIONAL#

It launched its iBuying arm in 2017 to use its vast trove of real-estate data to quickly buy, fix up, and sell homes for a profit. While Zillow became a household name by compiling photo-filled property listings that daydreamers love to browse, the $25 billion firm has promised shareholders that iBuying would be a lucrative new frontier for the company. Phoenix started out as a lucrative epicenter for iBuyers Zillow is scheduled to announce its third-quarter earnings on November 2, including performance metrics for its Offers unit. Phoenix is currently Zillow Offers' second-largest market, after Atlanta.Ī spokesperson for Zillow said the company wouldn't comment on Insider's findings. If the company were to sell all of its Phoenix homes right now at their list prices, it would lose $6.3 million. Only 16 homes were listed above Zillow's purchase price, and all of them were listed within the last two weeks, suggesting that those units too could fall into the red in coming weeks if Zillow is not able to sell them quickly. The rest received price cuts in the days and weeks after initially listing for above purchase price. Of the Phoenix homes Insider reviewed, 36.5% were listed for less than the company first paid for them from the outset. Chief Operating Officer Jeremy Wacksman said the pause was because of 'an operational backlog for renovations and closings' that he blamed on 'a labor- and supply-constrained economy inside a competitive real estate market.'īut Zillow still has to offload its existing inventory - and the high percentage of homes currently being marketed at a loss points to challenges for the property-tech giant. The potential losses highlight the risks of the iBuyer business, which aims to buy and resell properties for a profit in a roller-coaster market.Īfter purchasing 5,661 homes across 25 metropolitan areas from Austin to Tucson since the beginning of 2021, Zillow announced on October 17 that it would stop buying homes for the remainder of 2021. Out of 224 homes, 208 - or 92.9% - were priced below what Zillow paid.

Insider reviewed all the homes for sale by Zillow in the Phoenix metropolitan area as of October 27. The iBuyer division, called Zillow Offers, uses artificial intelligence to help determine the price it would pay for homes and has attracted sellers by allowing them to receive an offer almost immediately and offload their property almost entirely online. The most striking numbers come from Phoenix, which is also the birthplace of the iBuyer, or 'instant buyer' strategy Zillow embraced until putting it on pause last week. Zillow is listing more than half of the homes it owns in its key cities for less than it originally paid for them, an Insider analysis found.

The losses could point to larger issues for one of the biggest players in the hot 'iBuying' space.

We examined 224 Phoenix homes Zillow is selling and found 92.9% are listed for less than it paid.

Zillow paused buying homes for the rest of 2021, leading to questions about its flipping business.

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#FLORIDA KEYS HOMES FOR SALE ZILLOW PROFESSIONAL#

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Florida keys homes for sale zillow