Recently, we reported that Redfin and Zillow would return to iBuying, along with Opendoor and Offerpad who have already continued their own initiatives of flipping houses.
Glenn Kelman, the CEO of Redfin, says that he sees an opportunity in the homes Airbnb has dropped due to the slump in vacation rentals- a sector that hasn’t seen the ups that the rest of the industry has.
In a recent interview, Kelman elaborated on his plans for RedfinNow, Redfin’s iBuyer program, which has recently been suped-up with updated features to match the current market climate.
Kelman stated that he believes iBuying will be stronger after the pandemic fizzles out. He explains that the iBuying business model perfectly cuts out human interaction, something that has been the main issue with buying and selling a house as social distancing measures are in effect.
Kelman says that Redfin is looking to flip beach homes left by Airbnb. The vacation rental business is all but kaput as consumers are staying home for quarantine. Airbnb has attempted to offer accommodations for longer and for those looking to further separate themselves from others.
“Investors who own Airbnb properties are looking for immediate liquidity. At some level it’s Redfin, Zillow, and Opendoor picking up where Airbnb left off. If they can’t get cash flow through one website, they’ve got to sell it through the other.”
Despite the issues surrounding the virus, the real estate industry has become versatile in its move to continue business while economies around the world struggle. Some might not make it through to the other side, but the ones that are the most innovative are seeing a bright future.