Zillow plans to buy and sell homes
April 16, 2018 - Phoenix
Zillow is no longer just a real estate marketplace that can help find your next home - the company has decided to become an active participant in the field. The company announced Thursday afternoon it was looking to potentially flip homes in the Phoenix and Las Vegas areas, starting this spring.
The company has teamed up with local brokerages in those areas to offer sellers money for their homes. If they accept, Zillow will make repairs and then list those houses on its own marketplace as quickly as possible.
"We're entering that market and think we have huge advantages because we have access to the huge audience of sellers and buyers," Zillow CEO Spencer Rascoff said on CNBC's Squawk Alley. "After testing for a year in a marketplace model, we're ready to be an investor in our own marketplace."
During a conference call with analysts Thursday, Zillow chief financial officer Kathleen Philips said the company was planning a turnaround time of no more than 90 days between when it bought a home and then sold it.
Zillowplans to own between 300 and 1,000 homes by the end of the year, chief marketing officer Jeremy Wacksman told Bloomberg.
The practice of flipping a home - buying it, fixing it fast and then selling it - can be very lucrative. But it is also risky. That seems to be the reason why shares of Zillow plunged 8% Friday.
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