I recently read an article by Chris Smith, the author of The Conversion Code, and I couldn’t stop laughing at the points he made about Zillow’s spectacular house-flipping failure. The irony was just too perfect.
Think about it: Zillow had unlimited data. They had billions in funding. They had some of the “best” engineers in the world. And they still managed to light nearly $1 billion in cash on fire while wiping out $40 billion in market cap trying to flip houses with their magic formula—the Zestimate.
Let that sink in: The company that tells YOU what your house is worth couldn’t figure it out when their own money was on the line.
When Spreadsheets Buy Houses
Here’s how Zillow’s grand plan worked:
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Let the Zestimate spit out a number.
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Make an instant cash offer.
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Buy thousands of homes at lightning speed.
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Sell them for profit.
Except reality had other plans.
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The algorithm didn’t notice the cracked foundation.
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It couldn’t smell the mildew in the basement.
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It didn’t hear the neighbor’s garage band rehearsing “Stairway to Heaven” until 2 a.m.
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It didn’t realize the “desirable location” was next to a power plant or a chicken farm.
Meanwhile, local Realtors were standing at closings, watching Zillow overpay by $30,000 to $50,000 per house, and laughing so hard we nearly dropped our Starbucks.
Horoscope Housing
Here’s the kicker: While Zillow was hemorrhaging money, they were still pushing Zestimates like gospel.
Still sending those little push notifications: “Good news! Your home just went up $40,000 this month!”
Meanwhile, in reality, their house-flipping division was collapsing.
The best part? Zillow’s own CEO sold his Seattle mansion for 40% less than its Zestimate. That wasn’t just a sale—that was basically him admitting what every real estate agent has known forever: Zestimates are about as accurate as using a Magic 8-Ball after three margaritas.
Yet millions of homeowners still check their Zestimate daily like it’s their horoscope:
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“Today, your home is worth $525,000. Avoid Virgos and unexpected plumbing repairs.”
Why The Agency Gets It Right
Chris Smith nailed it—real estate is not math on a spreadsheet. It’s local, emotional, and human.
That’s where The Agency comes in. We don’t play guessing games with algorithms. We back every listing with:
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Global reach in 130+ markets worldwide.
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The most-followed real estate brand on social media.
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2,000+ press placements a year in outlets like The Wall Street Journal, New York Times, and Robb Report.
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World-class marketing that gets sellers more exposure and higher offers.
My own listings regularly pull in 10x the exposure of average homes—because when you combine boots-on-the-ground experience with a global brand, you get results algorithms can’t touch.
The Punchline
You know who’s never lost $881 million flipping houses?
Your local Realtor who actually knows the neighborhood.
We know which builder cut corners in 2003.
We know which streets flood every spring.
We know the rezoning plan that’s about to double—or tank—your home’s value.
Zillow didn’t know any of that. Their Zestimate couldn’t even save itself.
So if you’re thinking about selling your luxury home, skip the horoscope, forget the algorithm, and trust the people who live, breathe, and sell in your market every day.
Wyatt Poindexter
The Agency Oklahoma
405-417-5466 - www.WyattPoindexter.com
