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Zillow, Seriously?

Zillow just announced that it’s going into the house flipping business. Wall Street loves the announcement. The stock is up more than 23%.  But you know me. I have questions.  The first question has to do with its current business. As far as current users are concerned, Zillow does three things: It tells you what your current home is worth, it helps you find a new home, and it tells you what the homes you’re looking for are worth. Does this new business line support the current business model? How credible is a Zerestimate® if you know it comes from a company that wants to make money by buying your home? They may be able to walk that line. It’s hard to know. But I’ll tell you this, there’s a good reason car dealers aren’t in the business of valuing used cars –– they leave that to Kelly Blue Book .  But let’s assume the new business line doesn’t devalue Zillow’s current business line. How exactly does this new venture work? Presumably, I go onto...