October 23, 2021
Real Estate

Viral TikTok accuses Zillow and competitors of manipulating the housing market. Here’s what’s really going on

Are companies like Zillow
ZG,
-3.40%

and Redfin
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+4.57%

manipulating home prices by purchasing properties across the country? That’s what one real-estate agent claims in a video that went viral on the social-media platform TikTok — but real-estate experts say the reality is much more complicated.

In a video that’s garnered more than 2.4 million views on TikTok, Nevada real-estate agent Sean Gotcher criticizes the “iBuying” business model, where companies buy and sell homes for a profit. In the video, he proposes that a nameless company has a website where many people search for homes “when they’re bored,” and he says that same company “uses that information to go into that ZIP code and start purchasing houses.” In other words, he’s suggesting that companies such as Zillow are using the data they glean…

Read full article here: www.marketwatch.com