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Hello fish what will be the in hand salary..?
This is so reassuring!
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This is so reassuring!
Looking for some likes, happy Sunday 🐠
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Zillow has the same business model as many other well known tech companies: losing tons of money
They trusted their AI model over common sense.
Rising Star
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.
Yep, a home to us, a business transaction for everyone else. Meanwhile the middle class keeps shrinking and so is our political power.
I think they slightly over paid.
Yes
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.
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.
Pro
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
https://www.inputmag.com/features/viral-tiktok-real-estate-ibuyers-zillow-redfin
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.