You don’t win in residential real estate by only perfecting your algorithm. Real estate agent fees are 4% to 6%, but our service fee was 1%.”While Zillow didn’t offer the level of service that a real estate agent might, Onyeyiri said the deal was well worth the lack of hand-holding. One real estate agent’s critique of the iBuyer industry, which described how big companies buying homes could potentially manipulate the market, went viral on TikTok in September. However, Zillow’s exit from the market is a sign that it wasn’t making big profits from soaring real estate prices. While Redfin’s president and CEO Glenn Kelman said his company has no plans to exit the iBuying market, it is a reluctant participant.

Source: CNN November 08, 2021 17:21 UTC