Picking up from Part 1 of Inman’s Essential Guide to iBuyers…
Where are iBuyers Located? (as of December 2018)
You’ll note that presently Phoenix, Atlanta, Tampa and Las Vegas have the most iBuyers. Why? These cities have the most “cookie cutter” houses that provide buyers and sellers with the most certainties. You’ll also note that iBuyers are clustered in the Sunbelt and the South.
Seattle – OpenDoor
Portland – OpenDoor
Sacramento – OpenDoor
San Francisco – OpenDoor
Los Angeles – OpenDoor
Riverside – OpenDoor
Las Vegas – OpenDoor, OfferPad, Zillow’s Instant Offers
Phoenix – OpenDoor, OfferPad, Zillow’s Instant Offers
Tucson – OpenDoor
Minneapolis – OpenDoor
Chicago – OpenDoor
Nashville – OpenDoor
Jacksonville – OpenDoor
Austin – OpenDoor
Dallas – Fort Worth – OpenDoor, Knock, Realogy
Denver – OpenDoor, Zillow’s Instant Offers
San Antonio – OpenDoor
Houston – OpenDoor
Raleigh – OpenDoor, Bungalo
Charlotte – OpenDoor, OfferPad
Atlanta – Realogy, Bungalo, OpenDoor, Knock
Orlando – OfferPad, OpenDoor
Tampa – Knock, Realogy, OpenDoor, OfferPad
Targeted Price Points
Typically, the iBuyer price range is between $100,000 – $500,000.
- OpenDoor tends to target the $225,000-$250,000 range.
- OfferPad usually targets the $200,000-$240,000 range.
- Instant Offers tends to focus on $300,000-$350,000 price point.
iBuyer Market Share
iBuyers in Orlando, Las Vegas and Charlotte, according to Inman, realized the biggest increases of all iBuyers in 2018, however, no statistical data was provided to back up this statement.
iBuyers in Phoenix captured 4% of the total market, an increase of 1.5% from 2017.
iBuyers in Raleigh, having zero percent of the market in 2017, garnered 2.8% of the market in 2018.
Alan Blomquist, senior vice president of ATTOM Data Systems, said, “(iBuyer) businesses that just started a couple of years ago are now doing thousands of transactions…this is an operational and logistical feat! At this point, the momentum is so strong that, I think, we’ll see this concept (iBuyer companies) have a lasting impact on the industry.”
Peter Flint said, “…I believe it (iBuyer companies) has the potential within the (next) decade to transform the majority of real estate transactions.”
Why Now for iBuyers?
For the past several years, interest rates have been low so investors have the money…a lot of available money to invest in technical solutions to what many have seen as antiquated practices and procedures in real estate.
Courtney Read of OfferPad said, ”Real estate was the last industry to focus on demand. Now we are (focusing on demand) and…our customers select us because of the flexibility of the close and the cash offer.”
How can traditional agents and brokers adapt?
Peter Flint – “Agents themselves have to differentiate themselves less on sales ability and more on service ability.”
Tyler Hixon – “You always want to have options for your seller. This (iBuyer platform) is another tool in your kit.”