NYT Article – Real Estate’s Latest Bid: Zillow Wants to Buy Your House
In recent years, there has been much focus on house flipping. The latest is that Zillow is going to buy houses that they think are underpriced and resell them. https://www.nytimes.com/2019/05/07/business/economy/ibuying-real-estate.html
I could see big entities coming in a recession and scooping up property wholesale, but I can’t see that they have any advantage here. They won’t be able to do the work less expensively than someone working themselves. It probably will make bidding for properties more competitive.
Coming in at the end of the economic cycle is probably not the smartest idea either.
The future will prove me right or wrong. What is your thinking?