We’re going to start off by apologizing. We’re sorry to the real estate agents, brokers and office managers we’ve angered already with the first two parts of this series. And we’re sorry to those of you who are just plain scared out of your minds by all this.
Now, get over it. Why? Because now we have some harsh facts about the realities of what is going to take place as instant offer programs move from larger test cities to your own backyard.
For those Game of Thrones fans out there: Winter isn’t coming — it’s here.
Set aside your ego for a few minutes, and remember that the largest fortunes have been made during the greatest times of change. Industrial revolution, anyone? And many more revolutions since then.
Instant offers can be your real estate revolution if you’ll accept it and embrace these eight points:
- iBuyer companies will flourish whether the market is up or down.
- iBuyer companies will seize market share. Need proof? In Arizona, one brokerage is closing on 100 homes per month with the intention of putting those homes for sale next year. Do the math, and then pray that isn’t in your immediate marketplace. Now, consider what happens when several IO companies are competing for listings at the same time? They will make their offers to sellers more attractive in order to compete.
- iBuyer companies will own the buyer leads. When the Instant Offers companies have 1000’s of signs in yards all over your market, they will be overwhelmed with buyers leads. Those buyers that have homes to sell will find the Instant Offers option incredibly attractive. Instant Offers are already marketing a ‘trade’ program; buy their home for sale (a property that they OWN) and they will buy yours. Very compelling.
- Zillow will tightly align itself with all major iBuyer companies. And you thought Zillow selling leads was the problem? Wait until it gets into the referral business! Remember, effectively, Zillow is a broker! They ARE your competition.
- iBuyer companies won’t ‘need’ the MLS. Stop thinking of the MLS as some kind of “golden calf.” Zillow won that battle a long time ago. Instant Offer companies will grow from their listings. Buyers with homes to sell will list their homes with Instant Offer companies, which then will keep buyers and sellers in their ecosystem.
- The fastest growing segment in all this is institutional investors and the industry is not ‘getting it.’ Listen to the podcast as we break this one down and pull back the curtain!
- The iBuyer movement is not the same as “we buy ugly houses.” This is way bigger, and once they control the listing side, they will control the market.
- Say goodbye to buyer-agent co-ops. They want buyers going direct! Here’s one more reason buyer’s agents are a dying breed.
CRITICAL: Stop worrying about iBuyers math. We hear brokers claim the IO companies will fail because they will pay too much, the market will shift etc. They are thinking TOO SMALL. For now, the Instant Offer companies don’t care if they lose money now. They are getting inventory and can remain unprofitable for years, like Amazon, like Zillow and like many other companies. They are taking MARKET SHARE. THINK BIGGER! Agents, brokers, these guys WON’T run out of money. As Wall Street sees the IOs being successful MORE IOs will be formed.
We were recently told that a MAJOR investor has set aside THREE BILLION dollars to get into the Instant Offers space. Our source wouldn’t spill the beans who this investor is. If this is true and a Instant Offer company backed with 3 billion in seed money hits your market…how will you compete?
(Answer: have your own Instant Offer program.)