(Bloomberg) -- Zillow Group Inc. is looking to sell about 7,000 homes as it seeks to recover from a fumble in its high-tech home-flipping business.
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The company is seeking roughly $2.8 billion for the homes, according to people familiar with the matter.
Zillow is likely to sell the houses to a multitude of buyers rather than packaging them in a single transaction, said the people, who asked not to be named because the matter is private.
Zillow recently said it would stop making new offers in its home-flipping operation for the remainder of the year. The decision came after the company tweaked the algorithms that power the business to make higher offers, leaving it with a bevy of winning bids just as home price appreciation cooled off a bit.
A representative for Zillow didn’t immediately comment.
Read more: Zillow’s Zeal to Outbid for Homes Backfires in Flipping Fumble
Zillow put a record number of homes on the market in September, listing properties at the lowest markups since November 2018, according to research from YipitData. It also cut prices on nearly half of its U.S. listings in the third quarter, according to Yipit, signaling that its inventory was commanding prices lower than it expected.
Zillow, led by Chief Executive Officer Rich Barton, is best known for operating an online listing service. In 2018, it started practicing a new spin on home-flipping called iBuying that seeks to offer sellers a simplified way of selling a home.
The company bought more than 3,800 houses in the second quarter, making progress toward its stated goal of acquiring 5,000 homes a month by 2024. The increase in purchases left the company struggling to find workers to renovate the properties.
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