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Rainmaker
1,387,778
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

"i" stands for institutional or investor.  These range from companies like Blackstone Group to zillow to Tarek from Flip or Flop.  It's nothing new, these programs have been around for a long time.  My family has been an "iBuyer" since the 80s.

Oct 06, 2021 08:36 AM
Rainmaker
378,115
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

There are two types, hard iBuyers and soft iBuyers.  The first type buys for cash and actually takes ownership.  They usually do some work, then sell the home.  (Zillow, Open Door, Offer Pad)

The second type act more like bridge loans.  They buy your next home for you, then they can help you sell your existing home.  Once it sells, you refi into your new home.  The iBuyer gets their money back, plus a fee. (Knock, Orchard, Homeward, Fly Home)

I appreciate the question.  I am putting together research for a video and appreciate all the information I can get, including any corrections to the above information.  iBuyers are much more varied than I had ever imagined.  It is hard to figure out what the fees are.

Except for very unique situations, I do not know why a seller would use an iBuyer.  It is a relationship where a trained professional is going up against an unrepresented seller.  Professionals that are in the business of buying low and selling high.  Most iBuyers say they buy close to market value.  Even if that is true, it does not take into account all the homes going above market value.  It makes much more sense to me for a seller to sell retail and not wholesale.  We all want to buy off market.  It makes sense for buyers, not sellers.

 

Oct 06, 2021 08:08 AM
Rainer
117,268
Karen Climer
Demetree School of Real Estate - Orlando, FL
Teaching people to pass the real estate exam

I'm confused by this question.  You ask us what ibuyers are, presumably because you don't know.  But then you say you are asking because it's an interesting topic and you want us to be aware of it, presumably because you are familiar with ibuyers and want us to be familiar with them as well.

Are you trying to figure out what an ibuyer is?  Or are you trying to enlighten all of us? 

If your goal is to enlighten us, perhaps a blog post would be a better tool.

Oct 06, 2021 05:18 AM
Rainmaker
4,214,059
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Bob Crane has a handle on this one.

Oct 06, 2021 04:20 AM
Ambassador
5,414,003
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

For people who are willing to take a discount price in exchange for quick hassle free sale Ibuyers will buy the home without it ever entering the market.

Some ibuyers are big corporations, some are individual investors and agents who have the cash to invest.

Oct 06, 2021 12:22 AM
Rainmaker
911,486
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

iBuyers are the people behind the signs I see tacked to telephone poles that say "We buy ugly houses." They have been around forever. The difference today is that they are backed by venture capital and that allows them to make a big splash.

 

Oct 06, 2021 06:57 AM
Ambassador
3,058,272
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

By whatever name anyone wants to call them, iBuyers have been around for a long time ... they are not going anywhere. People looking for opportunities will always be present in any market.

Oct 06, 2021 08:49 AM
Rainmaker
1,723,555
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

I am aware of it, why aren't you? Maybe you want to discuss it but phrased your question oddly.

Oct 06, 2021 08:14 AM
Rainmaker
1,232,727
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Corporate or investor backed cash purchases for desperate or ignorant sellers. As far as who are the top ibuyers it depends on what you mean by “top”. 

The ones that advertise the most or the ones that are doing the best business because the iBuyer model?
 
It may be too soon to call it a failed process but it’s getting a less than stellar start, I know Zillow had to make many changes to keep their investors dumping money in because initially there ibuyer program failed miserably. They started buying at market value just to get exposure and (while selling at a loss). 
 
I rarely see an iBuyer owned property in San Diego for sale; which is what happens to those properties next -they list them for market value after buying them for below market value. 
Oct 06, 2021 07:18 AM
Ambassador
1,821,961
Alan May
Jameson Sotheby's International Realty - Evanston, IL
A moving experience!

If you're trying to make us aware of this topic, it would be nice if you'd impart some information. 

Oct 06, 2021 06:23 AM
Rainmaker
3,620,276
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I don't know much about them but they are definitely changing the industry and leaving buyers with much more liability of their own to deal with.

Oct 06, 2021 05:01 AM
Rainmaker
6,613,258
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

The answer from Google..

What are iBuyers in real estate?
 
 
iBuyers are real estate companies that buy and sell properties through technology. They emerged on the scene after sensing a need within the industry. ... Theoretically, iBuyers cut out the need for a realtor or agent by buying homes directly from homeowners and selling them directly to home buyers
Oct 06, 2021 04:21 AM
Rainmaker
884,736
Peter Mohylsky. Broker -BRIX REALTY
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY -DESTIN

Great question and I am sure there will be many interesting answers.

Oct 06, 2021 03:42 AM
Rainmaker
991,615
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

The Real Estate market is always in some sort of change

Oct 06, 2021 10:58 AM
Rainmaker
558,105
Jason E. Gordon
AmeriFirst Financial Inc, San Diego, CA - San Diego, CA
Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE

If you want a deeper dive into this topic, I highly recommend attending one of these seminars. Closest one to you is Sacramento next month. You'll not only walk away with knowledge about iBuyers, but you'll learn how to sell against them when your Clients start having wandering eyes. https://www.c4connection.com/seminars

Oct 06, 2021 09:25 AM
Ambassador
2,607,041
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Appears to be another type of investor in real estate. Ryan Huggins - Thousand Oaks, CA and Raymond Henson, eXp Realty have educated answers on the subject.

Oct 06, 2021 06:12 PM
Rainmaker
1,021,319
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

I Buy, You Buy, we all Buy. 

 

One definition:

Instant BUYER- A real estate company that buys homes from sellers who sign up online. After receiving a description of the property, the iBuyer makes an offer to the seller within a couple days, which may even include the cost of moving.

 

Certainly competition for Realtors representing a Seller that does not want showings, to do fix up, maintain the home and just want to get out of "Dodge" and be done.

 

However, tor a Seller that wants top market price for their home using their professional Realtor will get them the most qualified buyers that are ready to submit contracts in a actual market price.

 

The IBuyer is going to buy the home below market in most cases.

Oct 07, 2021 10:17 PM