Zillow's announcement of their Instant Buyers program into Arizona recently has begun to take shape, with the company planning to invest between $75 million and $250 million in 300 to 1,000 homes by the end of the year.
The iBuyer algorithm that Zillow's functions will be based on has users fill out a questionnaire, then AI matches them with prospective homes. Then, after the buyer chooses their home, the seller prepares the home, and the buyer moves in.
iBuyer wasn't the first to enter this market, as Opendoor was the first in 2015. However, Zillow plans to move away from the traditional market, using their current technology and real estate agents to improve their algorithm and get ahead of the curve.
Home prices have been falling recently, so it's difficult to say if this model will work on its own merit. For now, it seems like algorithms are the future.
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