Property portal Zillow could conquer the iBuyer market

May 1, 2019
Share this Post: 

US Real estate marketplace Zillow is in the perfect spot to begin its takeover of the iBuyer market

Imagine you knew nothing about real estate. That you had never heard of an escrow, natural hazard disclosures or title insurance. In this world, what does a home transaction look like? Do you have to worry about mortgage rate increases, all cash offers or seller contingencies? Or, if your only frame of reference was the frictionless process in which we buy everything else in our daily lives, would you assume that you would be able to find a house that you like, enter your payment details and buy it. 

This ignorant, idealized version of the home buying process seems like pure thought experiment but, in fact, it’s a lot closer than any of us ever imagined. The end-to-end customer experience for real estate transactions has seen billions of dollars poured into companies called iBuyers, who’s very business model is to buy houses instantly and sell them without the hassles that we have come to accept. This trend is still in the early stages and there are no signs of it slowing down. 

The iBuyer business model is pretty straight forward, a real estate company uses data science and property data, both public and private, to create valuation models that identify home with high investment potential. They can then make an instant offer that provides liquidity to homeowners that doesn’t exist on the traditional real estate market. Typically, iBuyers charge a 7-10% fee compared to a standard 6% agent commission and will offer an 80-100% of the market value for a home. They might charge a higher fee for convenience but many sellers will be willing to pay for the benefit of being able to have a sale finalized within weeks or even days. You may take home a bit less than the traditional method but you can save time and all the headaches that come along with selling or buying a home. 

Read more here

Join us in Miami Beach, June 5-7 for the Global Online Marketplaces Summit.

Mia2019 April 19 Banner

May 1, 2019

Subscribe to our mailing list to get news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

Rightmove Not Listening
Rightmove to ‘Reject’ Listings Without a Price—and None of Its Current Listings Are Compliant

From today, new listings that don’t display a price cannot be uploaded to Rightmove. Rightmove made the announcement to comply...

Read More
Zigbang Investment Scaled
Zigbang Secures $77m Funding Before Anticipated IPO

Real estate marketplace ZigBang has raised ₩100 billion ($77 million USD) in what is believed to be a pre-IPO equity...

Read More
Shutterstock 1668133759 Scaled
Offerpal secures pre-seed funding round

Proptech startup Offerpal has raised an undisclosed pre-seed funding round led by Swedish venture capital firm PropTech Farm, with Offerpal...

Read More
Immowelt And Remax Partnership
Immowelt and RE/MAX Expand Their Partnership

Remax Germany and immowelt will increase their collaboration through shared marketing services. Immowelt will now provide some of its digital...

Read More

Popular News