There have been recent discussions about the return of iBuyers to the housing market in the first quarter of this year (check out these articles from Banker & Tradesman as well as HousingWIre). iBuyers, including Zillow Offers, Opendoor, Offerpad, Redfin, and others are companies and services that will make cash offers to homeowners so they can easily sell their homes . If accepted, more often than not, these iBuyers will then quickly turn around and resell the properties.
For those that are more interested in a fast sale, this is an extremely helpful service. However, for real estate professionals and homebuyers alike, these companies are competition. To better understand what you may be up against, let’s look at some fact facts about iBuyers:
- Ownerly has a list of the top iBuyer markets for 2020. These markets include Phoenix, Atlanta, Dallas-Fort Worth, Houston, Charlotte, Raleigh, Denver, Las Vegas, and many other markets where buyers are currently facing stout competition.
- Ownerly is also predicting a strong move for iBuyers towards markets in the Northeast, such as New York and Boston.
- According to Redfin, the top iBuyers in the country purchased one of every 100 homes that were sold in 2019 in over 200 metropolitan areas.
- By the end of 2020, the top iBuyers purchased 48 percent fewer homes than they had the year prior (a total of 3,505 homes were purchased in the fourth quarter of 2020) due to the COVID-19 pandemic slowing everything down.
- But things have picked up in 2021, only down 6.1 percent from first quarter of 2021 and up 20 percent from the end of 2020
- In 2019, the median home price paid by iBuyers was $261,000 (according to Redfin) but that average was predicted to rise after the FDIC raised the minimum purchase price of a home requiring an inspection to $400,000 (from $250,000).
- By the first quarter of 2021, the median sale price was up to $302,050, with the average home purchased by regular buyers being $320,000.
iBuyers are regaining their traction in 2021, since they’re able to offer reasonable prices paired with the promise of a fast sale, and their reach is expanding. What does this mean for real estate professionals? For the unprepared – potentially the loss of business.
For those willing to adjust to ever-evolving technologies and find a way to differentiate their offerings, there is still a plethora of business to be earned. Here are a few of the biggest ways Forbes suggests that will set you apart, and keep clients coming:
- Keep it personal and offer guidance – the support a good realtor can provide when their client is facing a difficult market (whether buying or selling) is invaluable. If your clientele knows they’ll be getting a better deal with you, and you’ll be there to help them every step of the way by staying active and keeping in touch, this will be your biggest selling point.
- Be a full-service brokerage, even if it means entering enemy territory – Offerings like managing cleaning, staging, and organizational services are a big deal. Selling a home is stressful and being able to take that weight off your client’s shoulders is a compelling offer. This even goes so far as offering an iBuyer service of your own, or some other way to offer a fast sale to potential clientele.
On that note, if you’re looking to add such a service, or even if you’re just looking to stay competitive in your existing market, fresh and reliable data is a necessity. At The Warren Group, we offer access to the most reliable and up-to-date real estate data available, and on more than 155 million properties across the country. If you’re looking to get your hands on fast, reliable data, check out Our Data Solutions to find out about the different types of market intelligence we offer.
Then reach out to a data specialist to see how we can create a plan that meets the specific needs of your business.