Key Highlights
- Top iBuying Markets were Phoenix, Atlanta, Dallas and Houston in 2019
- Top iBuying companies in 2019 were Opendoor, Zillow, OfferPad, and Redfin
- Attach rates for ancillary iBuying services such as mortgage services hit 80% in some markets in 2019
Mike Del Prete, a real estate tech pro/wizard and board member of Zavvie, a developer of a proprietary iBuyer tool, is the go-to professional concerning the latest in iBuying happenings and trends.
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According to Del Prete as of January 2020, Phoenix, Atlanta, Dallas and Houston captured nearly 50% of iBuying sales in 2019. And the companies leading the way as iBuyers were Opendoor, Zillow, OfferPad and Redfin.
All four of these iBuying companies saw tremendous growth in terms of the total iBuying market share during 2019. Take a look:
- Opendoor captured 64% of the total homes purchased by iBuyers in 2019. This 64% represents a doubling of market share from the year prior.
- Zillow captured 18% of the total homes purchased by iBuyers. This represents an increase from 3% to 18% in just one year.
- OfferPad gained 16% market share of the iBuying purchased homes
- Redfin captured 1% of iBuying purchased homes, an unchanged market share from one year ago.
iBuying overall sold some $8.7B worth of homes purchased by iBuyers in 2019 and more than doubled its market share to nearly 60,000 transactions or 0.5% of the total market.
One key iBuying data point along with increased market share is an extraordinarily high attach rate for ancillary services. Some iBuyers reported an attach rate for ancillary services as high as 80%! 80% is truly amazing in an industry where the average attach rate is approximately 25%. No wonder that everyone and their sister is gobbling up mortgage, escrow, moving and whatever else ancillary services as part of their home buying and selling options.
In terms of Del Prete’s board involvement with Savvie, this developer recently launched an iBuyer comparison tool called Offer Optimizer that enables sellers to compare iBuying offers with different iBuyers to see what they might net from each iBuyer around the country.
This Savvie Offer Optimizer is coming to six brokerage firms around the country as you read this so that agents can “take advantage of this new way to sell, be the expert and spread confidence in (every seller’s) living room.” Already, this iBuyer comparison tool has had “some great wins,” according to Bob Parks of PARKS Realty in Tennessee.
Thanks to Inman’s Patrick Kearns for source data.
Also read: Existing Sales Up & Pending Sales Down in December 2019, Walkability A Hot Commodity When It Comes to Higher Home Prices, Refi Applications Spike +15%
