{"id":18604,"date":"2021-11-17T05:24:14","date_gmt":"2021-11-17T12:24:14","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=18604"},"modified":"2021-11-17T05:24:14","modified_gmt":"2021-11-17T12:24:14","slug":"overnight-news-when-the-wall-street-funded-real-estate-ventures-finally-bleed-out-they-will-have-made-no-difference-whatever","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18604\/overnight-news-when-the-wall-street-funded-real-estate-ventures-finally-bleed-out-they-will-have-made-no-difference-whatever\/","title":{"rendered":"Overnight News: When the Wall Street-funded real estate ventures finally bleed out, they will have made no difference\u00a0whatever."},"content":{"rendered":"

\"Ya

\u201cWho is intimidated by a stuffed\u00a0Dobermann?\u201d<\/p><\/div>People have been sending me clips from their local TV news stations about the devastation Zillow is leaving behind it, as it exits the flipping business.<\/p>\n

I told you in July of 2019 why this must be so: A retailer without a discount rack must discount all the goods in lockstep, ultimately creating a market-wide slashscade.<\/a> Zillow is at least stanching its exsanguination. The other big iBuyers still have their noses wide open.<\/p>\n

Nothing will save them when the market turns: The insuperable pitfall in flipping is owning the property for too long. The carrying costs already eat up every other iBuyer inflow, and this will only get worse when prices decline and Days-on-Market surges.<\/p>\n

But here’s a way around the discount rack problem, at least: Do as they do with cars and guitars: Rebrand. For example, if OfferPad \u2013 voted the iBuyer most likely to master arithmetic someday \u2013 has an overpriced turkey it needs to unload, it could relist it with its alter-ego brokerage, MakeItGoAway.com. They’ll still be losing money on every sale, but the big loser won’t be pulling down all the mini-losers.<\/p>\n

All of this is stupid, of course. There is no business here, other than the business of gulling Wall Street investors. If they’re happy, god help \u2019em, but I see zero evidence that Wall Street-funded tech ventures have made any difference to the real estate business at all. Zillow put the freebie supermarket magazines out of business, but life in the trenches goes on as before.<\/p>\n

Am I mistaken?<\/p>\n

In other news:<\/em><\/strong><\/p>\n

Brad Polumbo:<\/strong> St. Paul Just Implemented the Nation\u2019s Strictest Rent Control Law. It\u2019s Already Backfiring Tremendously.<\/a><\/p>\n

Andrea Widburg:<\/strong> Kyle Rittenhouse\u2019s attorneys allege that the prosecution hid evidence.<\/a><\/p>\n

City Journal:<\/strong> Cold Comfort: Mayor Lori Lightfoot\u2019s appeals to \u201csystemic racism\u201d don\u2019t do much for Chicagoans in high-crime neighborhoods.<\/a><\/p>\n

Steven Malanga:<\/strong> Free-Speech Entrepreneurs: Growing tech censorship continues to spark rapid gains at alternative platforms.<\/a><\/p>\n

Daniel Greenfield:<\/strong> Democrats are Destroying Public Schools. Republicans Should Help Them.<\/a><\/p>\n

Michael Walsh:<\/strong> COVID Panic Will Only End Through Civil Disobedience and Mockery.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cWho is intimidated by a stuffed\u00a0Dobermann?\u201dPeople have been sending me clips from their local TV news stations about the devastation Zillow is leaving behind it, as it exits the flipping business. I told you in July of 2019 why this must be so: A retailer without a discount rack must discount all the goods in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,26,6,5],"tags":[],"class_list":{"0":"post-18604","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-blogging","7":"category-lending","8":"category-marketing","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":18567,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18567\/overnight-news-in-the-easiest-real-estate-market-ever-zillow-discovers-that-real-estate-brokerage-is-hard-work-and-decides-to-take-a-breather\/","url_meta":{"origin":18604,"position":0},"title":"Overnight News: In the easiest real estate market ever, Zillow discovers that real estate brokerage is hard work and decides to take a\u00a0breather.","author":"Greg Swann","date":"October 19, 2021","format":false,"excerpt":"Here's an interesting question: Given that we know that the iBuyers gouge buyer's agents, could it be that they also gouge all their other vendors? This could explain why Zillow has discovered that it is unfit for the house-flipping business: It can't get rehab contractors, and, for bizarre reasons unknown,\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":18586,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18586\/overnight-news-whats-the-future-of-ibuying-ask-any-flipper-who-cant-do-the-math\/","url_meta":{"origin":18604,"position":1},"title":"Overnight News: What\u2019s the future of iBuying? Ask any flipper who can\u2019t do the\u00a0math.","author":"Greg Swann","date":"November 8, 2021","format":false,"excerpt":"What will remain of the iBuyers, once the market turns? As noted long ago, iBuying as such is a very stupid idea. A flipper came up with it, and it may be that he didn't really even get the math of flipping, he just started at the perfect time \u2013\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":18576,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18576\/overnight-news-astute-billionaire-rich-barton-ceo-of-zillow-and-the-incumbent-of-everything-brad-inman-can-sell-out-takes-only-three-years-to-discover-he-sucks-at-selling-real-estate\/","url_meta":{"origin":18604,"position":2},"title":"Overnight News: Astute billionaire Rich Barton, CEO of Zillow and The Incumbent of everything Brad Inman can sell out, takes only three years to discover he sucks at selling real\u00a0estate.","author":"Greg Swann","date":"November 3, 2021","format":false,"excerpt":"Well. It turns The Incumbent has a calculator on his phone. Even billionaires can identify a stupid business \u2013 eventually. On July 19th, 2019, I took OpenDoor's business praxis apart in public, demonstrating all their foolish marketing errors. Hundreds of OpenDoor staffers read that article. I think Eric Wu's parents\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":356,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/356\/zillowcom-bites-the-wrong-bullet-in-preference-to-telling-one-simple-truth-it-will-propagate-thousands-of-tiny-lies\/","url_meta":{"origin":18604,"position":3},"title":"Zillow.com bites the wrong bullet: In preference to telling one simple truth, it will propagate thousands of tiny lies . . .","author":"Greg Swann","date":"September 20, 2006","format":false,"excerpt":"Here's a simple fact, one of the most important reasons why homeowners need professional representation to market their houses: Diogenes himself could not find an objective seller. It's not enough to detail everything that's wrong with the neighbor's homes, the more important job, in a listing appointment, is to tell\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1264,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1264\/do-you-zlog-making-the-zillow-real-estate-guide-work-for-you\/","url_meta":{"origin":18604,"position":4},"title":"Do You Zlog? Making the Zillow Real Estate Guide Work For You","author":"Brian Brady","date":"April 4, 2007","format":false,"excerpt":"Do you Zlog? Let me define Zlogging on Zillow.com for you. Zillow solicited listings this past fall from Realtors and announced the Zillow Real Estate Guide (formerly known as the wiki). I was a huge critic of the practice of posting listings because I felt their intentions were disingenuous. I\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3353,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3353\/i-dont-need-to-show-you-any-stinking-badges-im-a-zillow-all-star\/","url_meta":{"origin":18604,"position":5},"title":"I don’t need to show you any stinking badges! I’m a Zillow All Star!","author":"Greg Swann","date":"July 11, 2008","format":false,"excerpt":"About a month ago, Zillow started showing the number of contributions you have made to their data base in your profile. Up at the top you see the total number of contributions, and down below you get a running total of recent contributions. It was obvious where they were headed,\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=18604"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18604\/revisions"}],"predecessor-version":[{"id":18605,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18604\/revisions\/18605"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=18604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=18604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=18604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}