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Exposing the Truth: Is Zillow Manipulating the Real Estate Market?
The online real estate marketplace Zillow was a hot topic on TikTok after Las Vegas-based real estate agent Sean Gotcher posted a real conversation starter. According to Sean, an “iBuyer” (a company that purchases homes using technology to figure out a market-based cash offer) was apparently scheming the real estate market.
How is this done?
Sean explains: “Let’s say that that company buys 30 homes within a two-mile radius, and let’s say the price is $300,000. So, they buy all of these homes for $300,000. Then on the 31st home, they buy it for $340,000.”
Some of you already know this, but in order to buy a home with a loan, the home needs to be appraised by comparing the house to other similar ones. Whoever is behind this (if anyone) is “resetting” the value of the market by purchasing that 31st home at a higher price.
According to Sean, this means that whoever this mysterious iBuyer is, they’re intentionally increasing home values for the sole purpose of filling their own pockets with more cash money. It’s important to note that Sean NEVER mentioned Zillow by name. It wasn’t entirely clear what platform he was talking about because then Redfin’s CEO chimed in…