Guy thinks his house is worth $525k...but Zillow buys it for $662k...then Zillow sells to some guy for $470k...then that guy sells it to someone else for $720k. Does anyone know what that cement covered shack is actually worth? I guess not.
@@marcoprolo2299 some things are necessities and it's easy to exploit people by increasing the price for the entire market for this things. If your water went up 10 fold, you can't pay what you want for it.
@@frenchonion4595 It has always been. I believe the current high price levels are more sociological than economical. Wait for the boomer class to vanish politically. The phenomenon has started but they still hold a lot of power as a generation. Boomers don't want to see the value of their property decreasing because it is for most of us our nest egg. It would be very easy to kill the real estate market without even having to increase the interest rates. But the governments won't, at least for the moment, because they could say bye bye to their seats.
When a lot of people are priced out of homes, their life will become unstable because they constantly have to move due to rising rents. That creates a lot of stress. Stress creates anger. Anger often results in violence - road rage, shootings, etc. Corporations should not be allowed to buy homes. It causes despair, chaos, and ultimately violence.
Amazing ! I predicted when they were artificially zestimating everything so pricey , they didn’t realize people haven’t got that much pay raised . So very soon this was bound to happen
The house we bought was off market (unlisted). Already priced high for the area, we closed when seller said "done deal at X amount". One week later, once people became aware of the property, there were offers of +20%! I suppose the upside is that from a financial perspective your investment has shown positive growth. The problem is with the term "broken". If you say the housing market is about providing people with good houses, then yes. If you say it's about providing investors (capitalists) with good returns, then it's aces. For my part, I think the essential problem is we let residential real estate be a privileged investment instrument. This encourages over investment, which causes the problem. Residents are competing with investors. Never going to win that competition. For the "free market" argument, I call BS. Real estate is not a free market. A market is defined by rules and the rules on real estate make it unequal to other investments. Just look at capital gains, tax rules, negative gearing, loans.
You've hit the nail on the head. The problem lies with the fact that too many people treat homes like investments. Here in the UK, we have portfilio landlords with hundreds of starter houses they own. They rent them out at extortionate rates. Obviously, these starter houses are what most first time buyers would want to buy, but investors pay over the odds, snap them up, and young people are forced to rent and waste their hard-earned money on greedy landlords. It's a vicious cycle! That's why I believe the system is broken. Homes aren't investments. Homes are homes. Sadly, I am not sure I see a way forward...
The system IS broken, but there’s no real way to fix it that would be politically palatable. One of the drivers of rampant housing inflation is the easy availability of cheap credit-when interest rates were in the double digits, real estate appreciated at a very modest rate over decades. Another factor is the large scale purchasing of single-family homes by giant investment firms such as BlackRock, a trend that really took off after the 2008 meltdown. Neither of these can be reversed without government interventions that wealthy, politically influential interests-specifically the real estate industry and the financial services sector-will do absolutely anything to prevent.
I’m 60 years old looking to diversify part of my savings say $250k into real estate but I hear it is not a good time to invest in Real estate. Can i get any idea on other options?
@@Gbdnd Standard investment advice is that you should invest in a diversified mix of stocks, bonds, and money market funds. If you are like most people you will invest part of your money aggressively in stocks, and part conservatively in money market funds and bond funds. However, some young people will go all stocks, and some very conservative people will go all money markets.
@@Gbdnd I have my funds well diversified by using trade signals from my investment advisor Jennifer Elizabeth Boland a US registered CFA who you might have heard about or seen in the CNBC news and tbh it's been a huge relief. Highly diversified portfolio, mind blowing earnings and little to no engagement at all on my part.
If Zillow can’t Zestimate properly. Why are people using their faulty metrics on their website to determine the value of any real estate the want to buy or sell?
🤔 I wonder if this was an inside job to make a corporate employee fast cash, zillow sells house for less then outside friend buys it cheap to flip it for over 700,000. Zillow loses but corporate employee and friend wins big.
I think it’s just incompetence on Zillow’s part. The ones in Atlanta barely had a description, they barely made any effort to make houses look more presentable.
Zillow "loses" then gets to write off those loses from their taxes. Their buyer friends comes in and buys up the property for a sweat deal. The rich never loses. Even when the lose they win.
People need to remember that Zillow did not know the value of the homes they bought so why would anyone take them seriously when they give you an estimate of your home's value? Listen to local, experienced realtors in the market where you live.
Investor money needs to be taken out of residetial resale real estate of 4 units or less . Its a quality of life issue. When rentals and houses are way to expensive when compared to median incomes then something has to be done.
Buyer beware? Open Door, a tech company in silicon valley, openly said they expected to lose on 50% of its transactions. Our home before we bought it, sat on the market for 1 yr and Open Door, renovated, new roof, paint, carpet, plastered pool and changed filtration system...They lost 50k on paper plus whatever the other costs were. Rolling the clock forward, our house purchased for 355,000, now according to Zillow is worth 735,000. So if the tech companies get it wrong...in my opinion...who cares...the buyers win if you are smart and the sellers win if you are smart. Carvana another example, pretty much sight unseen purchases of cars...gone are the days of test drives and tire kicking. Oh sorry you younger kids wouldn't understand what that means...in the end, thankfully, Alexa, Cortana and the like can't do everything...you still have to do your due diligence. Have a good week.
my brother-in-law managed to lose money in an up market, with clear title homes. this game (like those TV reno shows) is not as easy as it seems. Like most things in life.
Zillow's 'Zestimate' seems like a really bad idea, period. My armchair guess is that it's driving home prices up way faster than they would otherwise, merely by suggesting higher prices to people and anchoring their opening bids.
This story is insanely basis, the algorithm comment is laughably false. Not all ibuyers are the same and you mentioned the one that entered the market last and left the market soon thereafter.
Phoenix is a transient, investor driven, risky market. Over-inflated. Many of the homes are simply uninhabitable (poor quality). Buyers beware in that market. I left there in the 1980's after growing up there, never to return.
Zillow are idiots. I would of rented out the place and had a management company come in. They didn't know what they are doing! I would never of sold that house in the story, it was immaculate! If you're in it just to flip houses you're the reason why the market is the way it is!
Loading money evades tax and is a infamous ploy . Flooding a market to force pricing down for billionaire obsessed with gaming is just another want not needs nothing life of leisure play day.
Many who owned lands or houses were selling them, and the church distributed the proceeds to those who were in need (verses 34-35). One of these was Joses, surnamed Barnabas by the apostles, who sold his land and gave the entire price to the fledgling church (verses 36-37). Generosity and Christian love were so evident in these early believers. One couple, Ananias and his wife Sapphira, decided to sell one of their possessions (Acts 5:1). Though seeming to give all the proceeds to the apostles, they kept back part of it for their own use (verse 2). But they could not fool God; He knew what they had done. More importantly, He knew their hearts. By His Spirit, God made the apostle Peter aware of their attitude as well. Thus Peter asked, "Ananias, why has Satan filled your heart to lie to the Holy Spirit?" (verse 3). For their sin, Ananias and Sapphira both died that same day. What a shock this was to the newly founded church
@@MrSergeiRachmaninoff we need force the government listen to the people. Housing is a right like human rights. Those greedy property owners and investors are taking advantage of the people and we are not going anywhere but to take the country back. I rather dies for freedom than living in a struggling and evil society
I'm so happy they lost millions, but also that prevented those home buyers at the time to have that security in their lives. Its disgusting
That’s music to my ears! I hope all iBuyer companies go bankrupt! The world would be a better place without Zillow.
Agreed
Yeah I'm sick of the artificial values. They are exploiting the system. Greedy ficks
Couldn't agree more
The owner should have bought it back and sold it again.
Agreed, housing should be less about building wealth and more about housing people.
I am glad they lost money. They over inflated the homes.
Guy thinks his house is worth $525k...but Zillow buys it for $662k...then Zillow sells to some guy for $470k...then that guy sells it to someone else for $720k. Does anyone know what that cement covered shack is actually worth? I guess not.
Things only have the value you give to them.
@@marcoprolo2299 some things are necessities and it's easy to exploit people by increasing the price for the entire market for this things. If your water went up 10 fold, you can't pay what you want for it.
@@marcoprolo2299 Problem is value is extremely speculative now a day's
@@frenchonion4595 It has always been.
I believe the current high price levels are more sociological than economical. Wait for the boomer class to vanish politically. The phenomenon has started but they still hold a lot of power as a generation. Boomers don't want to see the value of their property decreasing because it is for most of us our nest egg. It would be very easy to kill the real estate market without even having to increase the interest rates. But the governments won't, at least for the moment, because they could say bye bye to their seats.
When a lot of people are priced out of homes, their life will become unstable because they constantly have to move due to rising rents.
That creates a lot of stress.
Stress creates anger.
Anger often results in violence - road rage, shootings, etc.
Corporations should not be allowed to buy homes.
It causes despair, chaos, and ultimately violence.
It harms families. AZ schools and families are harmed for over 20 plus years by this madness!!!
Amazing ! I predicted when they were artificially zestimating everything so pricey , they didn’t realize people haven’t got that much pay raised . So very soon this was bound to happen
Exactly, prices have far exceeded the fundamentals (wages etc.).
Lol if one house was given a slash so big because of an algorithm
Wait until a crash happens
The house we bought was off market (unlisted). Already priced high for the area, we closed when seller said "done deal at X amount". One week later, once people became aware of the property, there were offers of +20%!
I suppose the upside is that from a financial perspective your investment has shown positive growth. The problem is with the term "broken". If you say the housing market is about providing people with good houses, then yes. If you say it's about providing investors (capitalists) with good returns, then it's aces.
For my part, I think the essential problem is we let residential real estate be a privileged investment instrument. This encourages over investment, which causes the problem. Residents are competing with investors. Never going to win that competition. For the "free market" argument, I call BS. Real estate is not a free market. A market is defined by rules and the rules on real estate make it unequal to other investments. Just look at capital gains, tax rules, negative gearing, loans.
You've hit the nail on the head. The problem lies with the fact that too many people treat homes like investments. Here in the UK, we have portfilio landlords with hundreds of starter houses they own. They rent them out at extortionate rates. Obviously, these starter houses are what most first time buyers would want to buy, but investors pay over the odds, snap them up, and young people are forced to rent and waste their hard-earned money on greedy landlords.
It's a vicious cycle! That's why I believe the system is broken. Homes aren't investments. Homes are homes. Sadly, I am not sure I see a way forward...
The system IS broken, but there’s no real way to fix it that would be politically palatable. One of the drivers of rampant housing inflation is the easy availability of cheap credit-when interest rates were in the double digits, real estate appreciated at a very modest rate over decades. Another factor is the large scale purchasing of single-family homes by giant investment firms such as BlackRock, a trend that really took off after the 2008 meltdown. Neither of these can be reversed without government interventions that wealthy, politically influential interests-specifically the real estate industry and the financial services sector-will do absolutely anything to prevent.
I’m 60 years old looking to diversify part of my savings say $250k into real estate but I hear it is not a good time to invest in Real estate. Can i get any idea on other options?
@@Gbdnd Standard investment advice is that you should invest in a diversified mix of stocks, bonds, and money market funds. If you are like most people you will invest part of your money aggressively in stocks, and part conservatively in money market funds and bond funds. However, some young people will go all stocks, and some very conservative people will go all money markets.
@@Gbdnd I have my funds well diversified by using trade signals from my investment advisor Jennifer Elizabeth Boland a US registered CFA who you might have heard about or seen in the CNBC news and tbh it's been a huge relief. Highly diversified portfolio, mind blowing earnings and little to no engagement at all on my part.
I can sleep better tonight knowing this 😊
Companies shouldn’t be able to buy single family homes as investment properties.
Yeah they're stealing the American dream from some of us.
Regular people shouldn't either. Nobody should have 2 while others struggle to get 1
Yeah everyone should live in multi family homes. Single family homes are overkill & cause global warming.
I’m a hardcore capitalist and I do kind of agree here
It's worse when they buy multi family as that's the easiest way to own a home when you don't have a lot of money.
Zillow CEO made millions while gambling with investors' money. That's how the US companies work. Look at Sears, Kmart, Enron....
Sears and kmart got taken over by bcg. Boston consulting group. And they make the company fail to benefit the competition
If Zillow can’t Zestimate properly. Why are people using their faulty metrics on their website to determine the value of any real estate the want to buy or sell?
Nobody takes them seriously except themselves
they absolutely effect the market. I do think they need to be more transparent on what they base their metrics on.
@@SamanthaBellerson are you nuts? How does that benefit them to reveal their future projections?
🤔 I wonder if this was an inside job to make a corporate employee fast cash, zillow sells house for less then outside friend buys it cheap to flip it for over 700,000. Zillow loses but corporate employee and friend wins big.
Yup. Just like insider trading.
I think it’s just incompetence on Zillow’s part. The ones in Atlanta barely had a description, they barely made any effort to make houses look more presentable.
That's what they are doing. And to a degree, it's completely legal
Zillow does not lose! Who do you think is buying houses cheap and is their own real estate agent?
Zillow "loses" then gets to write off those loses from their taxes. Their buyer friends comes in and buys up the property for a sweat deal. The rich never loses. Even when the lose they win.
I hope this happens to all of these greedy business buying property and raising rent that people can’t afford
Haha! Maybe they shouldn't have tried to monopolize the market.
Laughing at the U.S. all the way from Ireland, Cheers you Bums!
Good 👍 These Ibuyer firms are buying large numbers of homes and raising prices to outrageous numbers so First time buyers can't afford them.
People need to remember that Zillow did not know the value of the homes they bought so why would anyone take them seriously when they give you an estimate of your home's value? Listen to local, experienced realtors in the market where you live.
Investor money needs to be taken out of residetial resale real estate of 4 units or less . Its a quality of life issue. When rentals and houses are way to expensive when compared to median incomes then something has to be done.
Fools exist every where! Banks love fools!
Buyer beware? Open Door, a tech company in silicon valley, openly said they expected to lose on 50% of its transactions. Our home before we bought it, sat on the market for 1 yr and Open Door, renovated, new roof, paint, carpet, plastered pool and changed filtration system...They lost 50k on paper plus whatever the other costs were. Rolling the clock forward, our house purchased for 355,000, now according to Zillow is worth 735,000. So if the tech companies get it wrong...in my opinion...who cares...the buyers win if you are smart and the sellers win if you are smart. Carvana another example, pretty much sight unseen purchases of cars...gone are the days of test drives and tire kicking. Oh sorry you younger kids wouldn't understand what that means...in the end, thankfully, Alexa, Cortana and the like can't do everything...you still have to do your due diligence. Have a good week.
Kids aren't really buying cars from carvana yet dude.
That’s why housing in US is broken for the middle class cuz these corporations looking at homes to make money and it’s hard to compete
God is good !!
2:02 made you sick, you should’ve walked away a happy man!!!
my brother-in-law managed to lose money in an up market, with clear title homes. this game (like those TV reno shows) is not as easy as it seems. Like most things in life.
I know an analyst at BofA and he stated that Zillow will be bankrupt within 2 years. I can see why.
Wow, sold for $720,000 it’s basically Gambling with a hot potato 🥔
It sure is. Very volatile.
Looks like the real estate investors over extended themselves; and now they are licking their wounds!
It depends on who bought it, it could have been an investor that they know.
You act like this loss is a big deal to Zillow, this is literally less than a drop in the bucket against their profits.
My guess that the employee in Zillow possibly had a back door deal with the buyer to spilt the profits privately leaving the company at a loss.
Nope. Not true.
Glad to see it
3rd sale for 740K was with a realtor not a tech company! YOUR REPRESENTATION MATTERS!
Smart people and smart technology ain’t always so smart
It's difficult to replace actually licensed real estate professionals.
House buying is like buying a vehicle. Drive it off the lot and it depreciates 30%.
The issue here is Corps should be allowed to buy homes and artificially inflate the market
No surprise here!
Robert should have bought his house back.
Zillow's 'Zestimate' seems like a really bad idea, period. My armchair guess is that it's driving home prices up way faster than they would otherwise, merely by suggesting higher prices to people and anchoring their opening bids.
This story is insanely basis, the algorithm comment is laughably false. Not all ibuyers are the same and you mentioned the one that entered the market last and left the market soon thereafter.
Cash out and buy out of the country.
Good.
Looks like Zillow has been a fool that has parted with their money.
Who’s the new buyers who got it cheaper? 😮
.. intern price? Took the loss to deduct taxes maybe ? Just wondering.
Zillow needs to retire their Zestimates!
Reporter is beautiful
@2:42 that was actually scary.
Phoenix is a transient, investor driven, risky market. Over-inflated. Many of the homes are simply uninhabitable (poor quality). Buyers beware in that market. I left there in the 1980's after growing up there, never to return.
He could have brought back his house and made some money ! 😅🤣🤣🤣
Computer software (algorithms) are allowed to conduct R/E transactions; therein lies the problem..............
Housing, crypto, and stock market bubbles are starting to pop.
What about Fundrise?
Zillow are idiots. I would of rented out the place and had a management company come in. They didn't know what they are doing! I would never of sold that house in the story, it was immaculate! If you're in it just to flip houses you're the reason why the market is the way it is!
How did it happen? Zillow became greedy. It happens all the time to greedy buyers and sellers.
He should have bought it back
Imagine thinking Zillow actually lost $$… it’s a little tax write off for them.
No it wasn't they lost for real. That's not a write off
#1 rule in real estate: you make most of your money on the purchase price
Loading money evades tax and is a infamous ploy . Flooding a market to force pricing down for billionaire obsessed with gaming is just another want not needs nothing life of leisure play day.
Some?? I think all of them
Many who owned lands or houses were selling them, and the church distributed the proceeds to those who were in need (verses 34-35). One of these was Joses, surnamed Barnabas by the apostles, who sold his land and gave the entire price to the fledgling church (verses 36-37). Generosity and Christian love were so evident in these early believers.
One couple, Ananias and his wife Sapphira, decided to sell one of their possessions (Acts 5:1). Though seeming to give all the proceeds to the apostles, they kept back part of it for their own use (verse 2). But they could not fool God; He knew what they had done. More importantly, He knew their hearts.
By His Spirit, God made the apostle Peter aware of their attitude as well. Thus Peter asked, "Ananias, why has Satan filled your heart to lie to the Holy Spirit?" (verse 3). For their sin, Ananias and Sapphira both died that same day. What a shock this was to the newly founded church
Praise the LORD! Remember when Jesus cleansed the temple. It's time to cleanse the housing market of all these evil corporations buying houses!
@@MrSergeiRachmaninoff we need force the government listen to the people. Housing is a right like human rights. Those greedy property owners and investors are taking advantage of the people and we are not going anywhere but to take the country back. I rather dies for freedom than living in a struggling and evil society
Why?
zillow lost 100,000...is that a big deal❓
Where is this?
Sounds more like Zillow is laundering money.
Awesome news! Hope they lost their arses! Karma!
Why didn’t he buy his house back for 470k?
Is that even a real word? I doubt it.
They look like single wide trailers not homes
that's Orange County...
Reap what you sow.
Not feeling bad for Zillow, they caused some of the bubble.
This was a power play
Third deal on that property. WOW. This is wat happens when you give stupid people money. They do stupid s..t. House is not worth $700K. Not even $500K
This is Fraud . If Zillow is doing this Fraud that's Shame and disgusting.
And I sold many houses to them 😄😄
How did Zillow take advantage of anyone? You got paid and now you’re homeless
Thieves! Shame.
Stop moving to Florida.
Oh gee, you're talking about pennies for Zillow, you're barely talking about 1 million, that's nothing.
MUH AI
Stupidity en masse.
It’s Called Socialism you fools
The rich crying over money
no sympathy
Dr
Jajajaja
We need Islamic Emirate states of America now
Where is this?