Is anyone familiar with Zillow’s model? The market is cooling off, but I do not understand why homes are selling below purchase price. Did Zillow grossly overpay for these homes?

Post Photo
likesmartfunny
Posting as :
works at
You are currently posting as works at

Zillow has the same business model as many other well known tech companies: losing tons of money

likesmartfunny

They trusted their AI model over common sense.

like

We need laws that say only humans can buy homes. Too many corporations sticking their nose into the real estate market is making debt ladden broke millennials perpetual renters. Humans, not corporations, need to buy homes. That's why it's called a home, not just a house.

like

Yep, a home to us, a business transaction for everyone else. Meanwhile the middle class keeps shrinking and so is our political power.

like

I think they slightly over paid.

like

Yes

like

Anecdotally, my realtor said a client of hers had Zillow buy their property at well over asking, but ended up selling at a loss. It seems they were buying at higher prices possibly to increase comps.

like

This was my impression precisely. You would see houses on the market a long time. The fact that they were still on the market was prima facie evidence that they were overpriced. It didn't seem that the Zillow model was properly taking this onto account.

Yes, they overpaid by over-relying on their valuation algo. This sort of mis-pricing often occurs when a theoretical bid-ask is assumed on relatively illiquid assets. Real estate is exactly that.

smart

I noticed this about a month ago. Wish I had done something to make money off it. I was thinking of buying a rental property and I did a search just for homes listed by Zillow and then compared to the purchase price and noted that many were listed below the purchase price.

Yes they overpaid on a ton of properties

I think if not for the labor shortage, they'd be much better able to clear their ibuying inventory more quickly without slashing prices.

But since there is a shortage, they have a lot of inventory they can't clear quickly enough to clear up their balance sheet and expected turnover rates.

Wow, I remember they came to a campus event pitching a competition to win something like 1 million dollars to whoever could build the best valuation model. Talk about failure of epic proportions.

I thought about how I could build something that focused on using simulation centered on individual behavior (agent-based modeling). I used to be a realtor and saw how quickly the market could change under the right circumstances. These kinds of dynamics may not easily predicted by typical math/stats-based models.

I had some exposure to ABMs in my Master's thesis. I specifically chose this area to avoid heavy math. But I realized that I would have to incorporate machine learning. ABM on its own would not be enough. I started with a simple linear regression model and I figured I was way out of my league. Can't compete with all the braniacs with their advanced stats and machine learning knowledge. What do I know?

Makes you wonder what else out there is ready to blow up at any time. It's like Long Term Capital all over again. There's a massive amount of model over fitting. AI experts like Andrew Ng have warned about this.

Related Posts

Are the basic Kendra Scott dangly earrings classic or out of style?

like

Hello fish what will be the in hand salary..?

Post Photo
like

All addictions are welcome. Sobriety, just like everything else in life, happens one day at a time. Remember, “Nothing changes if nothing changes."

like

I’ve been in a funk for quite some time, since maybe early Summer. I used to read the Bible and pray a lot in the AM, but barely read and lucky if I remember to pray during the day...

likeuplifting

34 M Pakistani, based in SoCal, liberal, openminded, looking for a moderate or liberal Muslim F partner in life. If anyone is interested in chatting, do let me know 😊

likehelpful

Just saw that. Not a big fan of the LF Coupe but would definitely go with a silver Aperta if I could.

Post Photo
like

How much are dental office managers making these days in NYC?

like

Over 12 years of experience in Healthcare vía administration, any ideas or suggestions to transitioning over to becoming a consultant?

like

How is Viacom account in terms of good project and learning opportunities?
Tech stack : Java, Spring Boot, Microservice, Cloud

like

Any recommended places for suits for summer associates? Any places that should be off limits? Thanks.

like
like

Looking to gain an understanding of Demand Gen Manager (marketing) roles and typical salaries. I have 7+ years of experience but also have a very nontraditional background so it seems hard to be considered for director level roles and above.

If anyone has insight into standard salaries for this type of role I’d appreciate the insight. Currently making 100k with stellar benefits.

like

Dear Fish, I'm ready for a new challenge. Looking for a referral to a T2 strategy firm. I can provide more details about myself over chat. Thank you!!

like

Any guidance on how to switch career from bpo to IT is very appreciated.
My wife has 7 years of experience in Hexaware and Accenture in operations(bpo backend/QA/ Data processing etc.)

We need 1 break, however companies are not willing to give single chance and no one is waiting 60days NP.

Please guide.

This is so reassuring!

Post Photo
likefunny

🐠 creatives who have worked abroad: 1) how hard was it to get a work visa? 2) How do you get overseas agencies' interest? 3) Are there certain countries that are easier to get a job in?

like

Facebook PM AMA

Thought it might be interesting doing a AMA here.

A bit about me:
Been at FB for 5 yrs. Currently a L6 PM, managing couple other PMs and leading a product group of 50+ people.

Have previously worked in startups, VC, and was in MBB prior to that.
No MBA
Early 30s Male

Trying to be helpful, so let's keep it fun and civil :)

likehelpful

Sup guys! Asked before, but curious to hear anything new: What are some side hustles you’ve been doing to get some extra income? Curious to hear some ideas for my own brainstorming. I used to flip couches off FB marketplace as a side hustle

like

Has anyone on here done accounting work with Beech Valley as an independent contractor? Im curious as to how steady the work is and how it might look on a resume.

likesmart

What are forensic monitor ship projects? I am about to be on one and the manager is bad at explaining. Is it essentially internal audit?

like

Additional Posts in Consulting

Joys of being home over weekends - my 6 year old wants to be a Gizmo and wants to make a BIG mess! And now the cleanup is in-progress ..., things I miss over the week

like

I feel like I’m in the twilight zone seeing all this turnover/layoffs and practitioners firm jumping

like

This is so reassuring!

Post Photo
likefunny

Accenture peeps what is typical raise % from C to M in strategy?

like

Saw an interesting role on LinkedIn and reached out directly to the CSO. He sounded very interested in talking with me. I then had the initial screen call with the recruiter and realized their...

like

Any non-boutique consulting firms hiring in Miami or Tampa for strategic transformation or diligence competencies? I have 2 YOE in strategy / ops / innovation primarily financial services, both retail and commercial. I am industry agnostic though.

like

Does anyone know what brand of pillows Sheraton use?? I want me some of that!

like

Do you think Apple made the best strategic decision by launching iPhone 14?

like

Has anyone successfully managed to get rid of lower back pain whilst working from home? I’ve invested in a decent ergonomic chair, try and sit with good posture and have a standing desk which I use for c.1 hour per day. Any other tips?

like

Fellow consultants, what are some notable characteristics you’ve observed of managers that are both effective and well-liked? Any book recommendations for how to be a good manager?

like

How is everyone on slalom so happy here? Is it a conspiracy?

like

Best technical skills and learning opportunities for corporate finance?

- VBA, SQL, Python (Coursera/LinkedIn Learning)
- Quant (R)
- Hyperion or other apps (work)
- CFA study (books)

like

Not a professional post but has anyone else who is into EDM strangely fallen in love with the chainsmokers? They are coming out with some good stuff lately

like

Good morning, Patagonia Vest Consultant writing, what songs should I have on my party playlist for tonight?

likefunny

Looking for some likes, happy Sunday 🐠

Post Photo
likefunnysmartuplifting

Any cool speak easy/cocktail nyc bars that take reservations?

like

Maybe I’m out of the loop…but how are all these consultants on here making low to mid six figures with 3 years industry experience? Perhaps I’m just in the wrong industries but that seems too short a time to be advising others in a field. Are these just internet exaggerations? Or is there something big I’m missing?

likefunnyuplifting

Had to take a client drug test today & I know I’m positive for THC (nothing else).

Results will probably get sent to Project team today/tomorrow. Does anyone know what happens in these situations?

likefunny

what’s your go to Starbucks drink? I usually do a grande blonde roast with toffee and soy. Looking to try something new!

likehelpful

Does anyone know what industries / competencies got hit by the layoffs yesterday? A few people mentioned it, but no one gave any details.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal