Selling Your Home
Zillow to Wind Down its 'iBuyer' Program and Expects Losses from the Program to Exceed $550 Million
Seattle based Zillow Group Inc announced its Q3 financial results on Nov 2, 2021 and in a letter to shareholders, announced it is discontinuing Zillow Offers, its direct home buying / home selling business.
"We have been unable to accurately forecast future home prices at different times in both directions by much more than we modeled as possible," Zillow CEO tells investors.
Zillow reported 3,032 home sales in Q3 with 9,790 homes in inventory and 8,172 in under contract.
Zillow recorded a $304 million write-down on inventory owned at the end of Q3 "as a result of unintentionally purchasing homes at higher prices than our current estimates of future selling prices" and "we expect to recognize losses of between $240 million and $265 million related primarily to inventory we have committed to purchase during Q4".