How Zillow Closing Its Home-Flipping Division Will Cause Long-Term Brand Damage
Entrepreneur magazine, Nov. 8, 2021–Jeremy Knauff
Zillow announced it’s shuttering its home-flipping division, Zillow Offers. While the company lost a considerable investment in this endeavor, the real damage hasn’t yet hit yet, and that’s the damage to its brand. Zillow’s entire business model hinges on providing home-value data. The problem is that their home-flipping division failed because the company’s own data did not match the real world. As a result, Zillow was unable to accurately assess the values of the homes it was purchasing and trying to flip, which many in the real estate industry say is further evidence of a flawed valuation model.
https://www.entrepreneur.com/article/395528