“Zillow isn’t a startup. It has over 4,000 employees. It has been a publicly traded company since 2011. And it has been on an acquisition binge, buying all kinds of other companies. And now it has figured out a way to lose a lot more money.”

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The painfully humorous article House Flipper Zillow Lost $109K (37%) Per Flip, Net Loss Triples, Shares Soar posted on Wolf Street isn’t pulling any punches – they’re bearish on the new “Zillow Offers” program, and for good reason!

A breakdown of the costs involved with the program shows a net loss of over $45 million dollars for the 414 homes sold through Zillow Offers – coming out to a ridiculous per-unit loss of $109k per home sold.

Wolf Street followed up with this scathing indictment of the program:

“Zillow isn’t a startup. It has over 4,000 employees. It has been a publicly traded company since 2011. And it has been on an acquisition binge, buying all kinds of other companies. And now it has figured out a way to lose a lot more money.

But Zillow is apparently not yet losing enough money, and so it is going to expand this ruinous home-flipping operation from the eight metropolitan areas at the end of March to more markets to boost its revenues and its losses. In home flipping, there are very few economies of scale; so we’re looking forward to seeing a beautiful cascade of losses.”

If there’s a takeaway from this article, it’s that Zillow remains determined to disenfranchise real estate agents & brokers as they continue their attempts to create a “direct to consumer” sales model.