[SomewhatLikely]

I question how much value Zillow would be adding. Inspectors should be playing the role of approvers. And most sellers value getting the biggest offer. If Zillow develops a reputation of offering you less than market value then people will stop taking that offer. Also, if the house is actually changing ownership to Zillow then in some states they would owe at least an excise tax on each sale.

[rco8786]

What they’re doing is an extremely common thing and proven business model.

There are lots of interesting things you can do to consistently buy “below” market value. Don’t use a realtor, that’s 3-6% savings. Buying in cash and guaranteeing a smooth closing is incentivizing to a lot of sellers, another couple % points. Etc.