I’m sure you heard, but in the off chance that you haven’t, I’ll fill you in.
Zillow is dismantling it’s iBuying department. In addition to laying off 25% of their workforce, they are expecting to take a half a billion (yes, that’s billion with a B) loss on the properties they have acquired.
Although this means you have a little less competition out there, it’s not all peaches and cream and here’s why.
First, nature abhors a vacuum. Someone else or some other artificial intelligence will fill the void left by Zillow.
Second, there’s a reason they couldn’t make it. And it’s not because of lack of brains or cash. A big company like that has overflowing buckets of both.
The problem is with the volatile nature of the real estate market. Demand is going down, supply is going up, labor is scarce, and margins are shrinking.
There is one place where margins are always high, real competition is scarce (because almost nobody knows how to do it right), and supply is virtually endless.
Yup, it’s probate. Niching down protects you from those robot iBuyers. Zillow may be calling it quits, but there is a ton of other human and artificial intelligence competition taking its place.
But what do you do with the probate property once you acquire it? Shortages on labor and supplies has made filling a lot harder lately.
Committed to your success,
Ernie “Not Afraid Of iBuyers” Vargas | The Probate Fox
Zillow’s Demise Won’t Save You