As the Economist reports, the real estate market has been characterised by low volumes and extortionate transaction costs. This antiquated model is on the verge of being disrupted with tech powering i-buyer models that are quicker, easier and cheaper.
For years Rich Barton, Zillow’s founder, found it odd that the algorithm assigned a negative value to extra bedrooms. “It seemed backwards. But once you’ve factored in square footage, extra rooms actually deduct from the value of a house.”