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Zillow’s iBuying Business Grows but is Not Yet Profitable

Zillow’s iBuying Business Grows but is Not Yet Profitable

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FintechNews RoundupUSA
··1 min read

Zillow Group saw their revenue double to $2.7bn in 2019, this was due in large part to their ibuying business; on average the company lost $5,000 per house due to account holding costs, selling costs and interest expenses; ibuying has become one of the hottest trends in the real estate space with a host of companies offering the services along with investors pouring in more than $1bn; doing so at a profit has been elusive as margins on house flipping tend to be low; Zillow hopes their overall offering which now includes title, escrow and mortgages will increase margins for its Homes business; “We expect to improve the overall margin percentage of Homes on an annual basis,” Allen Parker, Zillow’s CFO, said on a fourth-quarter earnings call on Wednesday according to Business Insider. Business Insider

  • Emily Donato

    With efforts in many different areas of the team, she helps manage, organize and execute digital and event content. She works with webinars, podcasts, social media along with managing the hundreds of speakers that attend our conferences. Emily was a part of the Zimmerman Advertising Program at the University of South Florida. She graduated in 2019 receiving a Bachelor of Science in Business Advertising.

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