14 ms·
They don't need to predict the actual sale price of every given property perfectly to make money. They need to be able to say that with 99% probability, we will
by sidr 5y ago
They don't need to predict the actual sale price of every given property perfectly to make money. They need to be able to say that with 99% probability, we will find at least one offer for this house >= 500,000. The errant buyer with loads of cash is free to come in and offer more. As long as they turn a sufficient profit at the 500,000 price point they should be set. In competitive markets, for people familiar with local dynamics, this is very much possible in a short-term time window. The question is doing this at scale in a fully automated way for a much longer time horizon. Zillow tried and failed.