Following last month’s news that it would halt home purchases for the remainder of 2021, Zillow has just announced it will close it’s iBuyer arm all together.
In today’s quarterly earnings report, Zillow announced that plans to wind down Zillow Offers, the company’s iBuying service. Citing that it was too difficult to accurately price homes, the closure will cut 25 percent of Zillow’s workforce as a result of the decision.
Per the financial statement, Zillow will write-down of inventory of approximately $304 million within the Homes segment as a result of purchasing homes in Q3 at higher prices than the company’s current estimates of future selling prices. The company further expects an additional $240 million to $265 million of losses to be recognized in Q4 primarily on homes it expects to purchase in Q4.
“While we built and learned a tremendous amount operating Zillow Offers, it served only a small portion of our customers,” said Zillow co-founder and CEO Rich Barton, in a statement. “Our core business and brand are strong, and we remain committed to creating an integrated and digital real estate transaction that solves the pain points of buyers and sellers while serving a wider audience.”