30, Zillow spent $1.2 billion on 3,032 homes, which compared to $186 million for 583 homes in the same period of 2020. It turns out, Zillow was making mistakes. “Or the alternative is that they were making mistakes.” Maybe they know something is going to happen,” Barnes said. I mean, maybe Zillow can afford to sit on a home and wait. “I thought either they are so much smarter than I am and they have this magic formula and they are forecasting the market. “It’s like we won a mini lottery.”īarnes said he’s chatted with agents and friends about Zillow’s strategy in buying his home for so much more than what he was asking - and even more than the company’s own “zestimate” value. “It felt like this was a rare gold rush moment where we just got fortunate,” Barnes said. We were freaking out,” said Barnes, who was closing on a house his family was building the day after closing the sale of their Castle Rock home.īut the deal closed, despite what Barnes called “a lot of last-minute stuff and disorganization by Zillow.” The money landed in his bank on Nov. “Our fear was that Zillow would not close. Zillow’s offer came in at $626,000, with only a 1% fee.īarnes accepted the Zillow offer and a couple days before they were scheduled to close, the company announced it was abandoning its nascent home buying and selling flipping business. A family using a real estate agent offered $575,000, which was slightly more than the Barnes’ asking price. They also submitted their home to Zillow Offers, as well as instant-buying market leader Opendoor Technologies Inc.Īfter a detailed in-person inspection by Zillow, a remote inspection by Opendoor and a week on the market, the offers landed. Kyle Barnes listed the Castle Rock home he and his wife purchased in 2013 for sale in early August. “It’s pretty crazy to watch, isn’t it,” said Michael DelPrete, who teaches a class on real estate technology at the University of Colorado’s Leeds School of Business.īut with inventories of for-sale homes at all-time lows and demand still peaking as buyers pay record prices across Colorado, brokers and real estate industry veterans don’t expect Zillow’s fire sale to have much impact on the market, even if the company sells them all in bulk to institutional investors.
Zillow overpaid for 500 homes in Colorado's Front Range this year Close
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