Zillow Group reported a loss of $881 Million in 2021, largely due to its home-flipping business, Zillow Offers. The algorithmic-driven home-flipping business shut down operations in Fall 2021. Its obituary reports that computer algorithms can not predict home prices and market forces like live expert Realtors, who live and work in the neighborhood.
This report is not surprising to many Realtors we have spoken to, since they have been saying for years that algorithms can not replace the advice of a real estate market expert. The full company posted a consolidated net loss of $528 million, cut 2000 jobs, and wrote down losses of half a Billion dollars for properties under the Offers program.
“Realtors do the best jobs in properly evaluating a home’s value and market potential,” said Rey Hollingsworth Falu, Broker Owner of Hollingsworth Real Estate Group and Director for the Hudson Gateway Association of Realtors. “Any algorithm or computer model needs a living expert who knows the area and the people. Nothing beats a local human expert.”