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Why the iBuying Algorithms Failed Zillow

1 pointsby stevofolifeover 3 years ago

2 comments

RoyTyrellover 3 years ago
The article didn&#x27;t talk about specifics, so I wonder who developed these algorithms.<p>Did they hire experts in modeling markets (i.e. economists and finance&#x2F;quants) to develop their financial models and algorithms, or did they just use some developers that like to fool around with ML libraries in their spare time and&#x2F;or data science undergrads?<p>Now from a consumer pov, I&#x27;m glad this failed. It sucks for home affordability to have that kind of cash buying up the home supply.
stevofolifeover 3 years ago
Zillow will shut down its AI-enabled home buy&#x2F;selling business and cut 25% of its workforce. The iBuying segment lost $422M in the most recent quarter.<p>Engine of their product is the Zestimate algorithm, a neural net model.