Why Zillow And Redfin Are Willing to Lose Millions
Imagine you need to sell your home fast. So you just click a button and get a cash offer with the chance to close in under 90 days, without cleaning, fixing, or remodeling. Some call this a dream come true. The rest of us call it the iBuying real estate trend.
Both Zillow (NASDAQ: Z)(NASDAQ: ZG) and Redfin (NASDAQ: RDFN) are riding the iBuying trend by giving out cash offers, fixing up purchased homes, and then selling them. Each company is aggressively growing this segment of its business. The only problem: So far, it is extremely unprofitable, with both companies losing millions.
Image source: Getty Images.
Source Fool.com
