Zillow Discovers House Flipping Is Best Left to Reality TV

If only the market could have foreseen how risky Zillow's (NASDAQ: Z)(NASDAQ: ZG) homebuying program was. Turns out that this isn't a sustainable business model, the company ended up paying more to buy and fix up a home than they could sell it for.

Zillow's announcement that it was winding down the Zillow Offers program sent the real estate information giant's stock into a tailspin, losing 36% of its value. But maybe this is actually good news. Or it will be after Zillow works through the inventory of homes it has in its portfolio.

Image source: Getty Images.

Source Fool.com