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Conflict of interest?

Started by 30yrs_RE_20_in_REO
over 7 years ago
Posts: 9877
Member since: Mar 2009
Discussion about
If you are a listing service, can you also be a purchaser on listings where you are supposed to be representing the owner's best interests? https://therealdeal.com/2018/04/14/investors-are-not-into-zillows-plan-to-start-flipping-houses/ http://fortune.com/2018/04/13/zillow-house-flipping-phoenix-las-vegas/
Response by 300_mercer
over 7 years ago
Posts: 10570
Member since: Feb 2007

In my opinion, as long as you are not the selling broker, you can buy without conflict. Advertising service has no obligation to get you the best buyer - just treat you as they would treat any other seller in terms of advertisement placement etc. Btw, do you know what they are planning to pay agents who represents them in selling?

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Response by 30yrs_RE_20_in_REO
over 7 years ago
Posts: 9877
Member since: Mar 2009

No, I don't. However, based on what you've seen in terms of unethical behavior from e-commerce companies (Microsoft, Uber, AirBnb, Facebook, Amazon) would your going in assumption be that Zillow won't set their "Zestimate" is homes they are interested in to an artificially low number? And what happens the first time Zillow pays a nickel more than their Zestimate? It kind of an admission that the Zestimate is bullshit.

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Response by 30yrs_RE_20_in_REO
over 7 years ago
Posts: 9877
Member since: Mar 2009

Obviously this guy is promoting his own site but he does have an interesting point.
https://youtu.be/nJdQndRTGoU

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Response by 300_mercer
over 7 years ago
Posts: 10570
Member since: Feb 2007

Thank you for the link. I would think if Zillow is selling at a price different from Zestimate, they will have to remove Zestimate for that listing or qualify that in some manner. I am sure that they have many lawyers looking at this issue. They can also set up a separate subsidiary for the sale/purchase and provide a disclosure for that listing with Zestimate.

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Response by ximon
over 7 years ago
Posts: 1196
Member since: Aug 2012

Lots wrong with this plan to investors so no wonder stock price tanked. Why would a service firm with a pretty safe business model take on real estate risk and litigation risk? Timing is also not good.

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