> Zillow’s exit from the market strengthens the position of companies like Opendoor or Offerpad, which do something similar
Does Opendoor just have better algorithms/models? What factors allow them to have different outcomes from Zillow?
Does Opendoor just have better algorithms/models? What factors allow them to have different outcomes from Zillow?
They tried to paper over this during their iBuying push with humans, and then in an effort to outgrow Opendoor, they incentivized growing at any cost without the proper controls to prevent adverse selection. And due to some unfortunate timing with the market cooling, they got wrecked for it.
Hopefully Opendoor can figure it out. They're probably going to need a lot of cash, homes, and software to really put it together into something that can be automated and scale.