Zillow's iBuying business, Zillow Offers, recently failed due to overpaying for homes at the top of the market and being unable to sell those homes for a profit later. This caused huge losses for Zillow, which is now looking to liquidate 7,000 homes and lay off 25% of its staff. While iBuying is still a valuable option for homeowners wanting a quick sale, Zillow's failure shows the importance of not overpaying for homes and adjusting strategies based on market conditions. Competitors may now gain market share by learning from Zillow's mistakes and focusing on customer choice and reasonable fees.