Zillow Group CEO Spencer Rascoff thinks his company’s foray into flipping homes will pay dividends in the long run, CNBC reports.
"We think of it like Netflix moving into originals," Rascoff told "Mad Money" host Jim Cramer in a Monday interview. "They used their data advantage and then they built that muscle memory, that DNA, to be creative. And it was a big swing for them and obviously it's created a huge business."
Under Instant Offers, Zillow’s home flipping plan, home sellers can use the company's online database to compare offers from potential buyers including Zillow itself.
If Zillow wins the offer, the company will aim to flip the home within 90 days and re-list it as quickly as possible with one of its premier real estate agents.
In some cases, Zillow will leverage its buyer data to advertise homes to prospective buyers before Zillow officially purchases and flips them, Rascoff said.
"We don't think of it as a flipping business – flipping is really about taking advantage of a distressed seller," the CEO said. "What we're trying to do is provide a service to a seller so they don't have to deal with the difficulty, the complexity, the uncertainty, the time of selling [their home]."