Скачать или смотреть iBuyers & The Disruption of Residential Real Estate

Residential real estate is arguably one of the most fundamental markets within any economy. However, the way in which homes are exchanged between buyers and sellers has long resisted any form of meaningful innovation, resulting in a process that is overly complicated and time-consuming.

But over the last 5 years, a new group of market entrants known as iBuyers, short for an instant buyer, are looking to fill this void and transform the inefficient and archaic home buying process into one that is both expedient and hassle-free. Using a series of algorithms, iBuyers generate instant, all cash offers for anyone looking to sell their home, which, if accepted are later put back on the market by the iBuyer and eventually sold to the end consumer at a small premium. And these iBuyers, which include the likes of Offerpad, Redfin, and Opendoor, have become a growing presence in the residential real estate market.

But in a market where approximately 9.3 million houses are exchanged between buyers and sellers each year, iBuyers only account for around 1.3% market share within the residential real estate market. And within this market, iBuyers are commonly seen as nothing better than stingy home flippers looking to earn a buck on every house they buy. However, this perception is largely incorrect and misses entirely the fundamental change that iBuyers are attempting to bring about in the real estate industry, but more importantly, in the way we live and perceive housing as a consumable good

So during this episode, we’ll cover why the real estate industry has long been resistant to any form of disruption, how iBuyers are positioning themselves to finally bring an end to this, and what their prospects of doing so are looking like

Chapters:
00:00-02:06 Introduction
02:06-03:10 Resistance to Innovation
03:10-04:39 Liquidity Constraints in Real Estate
04:39-05:23 What is iBuying?
05:23-06:46 iBuyer Fees
06:46-07:44 Automated Valuation Model
07:44-09:36 Value Proposition
09:36-10:56 Business Model
10:56-12:19 Commodification of Housing
12:19-16:12 The Uncertain Path Forward
16:12-17:05 Closing Thoughts