{"id":16839,"date":"2020-08-31T11:46:47","date_gmt":"2020-08-31T18:46:47","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=16839"},"modified":"2020-08-31T12:11:19","modified_gmt":"2020-08-31T19:11:19","slug":"the-money-making-secret-to-real-estate-socialize-the-risks-to-the-seller-the-ibuyers-are-just-now-catching-that-clue-ineptly-as-always","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16839\/the-money-making-secret-to-real-estate-socialize-the-risks-to-the-seller-the-ibuyers-are-just-now-catching-that-clue-ineptly-as-always\/","title":{"rendered":"The money-making secret to real estate? Socialize the risks to the seller. The #iBuyers are just now catching that clue \u2013 ineptly, as\u00a0always."},"content":{"rendered":"

\"\"

\u201cYes, I’m taking a cut on the sale of an asset I didn’t have to buy, first. But you are getting a real estate marketing expert you don’t even have to pay for until I’ve already delivered the goods.\u201d<\/p><\/div>This has been a slow-rolling epiphany on the part of the iBuyers. I’ve snarked about it here and there, but that’s all, so far. I wrote a ton about iBuying last Summer, but by now it all seems quite a bit less urgent. There are a lot more of them now, for one thing, and they sell like a niche offering \u2013 Ug-buys-ugly-houses with swankier web sites. Much worse, dumbasses who already could not evaluate properties are all at sea trying to price into dizzyingly volatile, madly divergent markets. And I thought they were screwed before<\/em> 2020 came along…<\/p>\n

So what’s their solution?<\/p>\n

Socialize the risks to the sellers, of course.<\/strong><\/p>\n

After only eight years of pissing away investor funds brokering real estate without a business model, OpenDoor has discovered real estate brokerage<\/a>: I sell it but you own it, and all I get is a sales commission \u2013 and even then only if I get the property sold and the transaction closed. Sucks to be the broker? It can \u2013 if the broker sucks. But the upside is that the broker pays only his marketing costs, with the seller bearing all of the ongoing carrying costs.<\/p>\n

I sell fast with almost no costs on my end, so this matters less to me that it might to, say, iBuyers, who have demonstrated repeatedly that they can cling to inventory long after buyer feeding frenzies have devoured everything else. Offloading months and months of carrying costs onto the seller might actually point OpenDoor to a path to profitability \u2013 someday.<\/p>\n

In passing: OfferPad is already cross-selling traditional listings, and, of course, this has been Redfin’s iBuying pitch all along.<\/p>\n

And that pitch is what?<\/p>\n

\u201cYou can either sacrifice your equity for quick cash, or you can risk your time, money and equity on the MLS.\u201d<\/strong><\/p>\n

They won’t say it that way, but that is the actual alternative being Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cYes, I’m taking a cut on the sale of an asset I didn’t have to buy, first. But you are getting a real estate marketing expert you don’t even have to pay for until I’ve already delivered the goods.\u201dThis has been a slow-rolling epiphany on the part of the iBuyers. I’ve snarked about it here […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[542,6,5,19],"tags":[],"class_list":{"0":"post-16839","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-ibuyers","7":"category-marketing","8":"category-real-estate","9":"category-technology","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":17336,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17336\/the-ibuyers-are-super-good-at-mulcting-buyers-agents-with-science-thats-why-they-cant-price\/","url_meta":{"origin":16839,"position":0},"title":"The #iBuyers are super good at mulcting buyer\u2019s agents with science. That\u2019s why they\u00a0can\u2019t\u00a0price.","author":"Greg Swann","date":"October 20, 2020","format":false,"excerpt":"Mike DelPrete is worth reading, so long as you understand that, like The Inglorious Knob, he is one with The Borg. Just lately I mentioned that the iBuyers in Phoenix are nicking buyer's agents for commission \u2013 which is just the kind of dick move you expect from financially-inept sociopaths.\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/10\/aidan-bartos-v9rZ3Yz6fSg-unsplash-1-480x320.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":16574,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16574\/ibuyers-and-me-you-need-a-realtor-like-you-need-an-undertaker\/","url_meta":{"origin":16839,"position":1},"title":"#iBuyers and me: You need a Realtor like you need an undertaker!","author":"Greg Swann","date":"December 2, 2019","format":false,"excerpt":"Pardon my absence. More work means less time to write about it. I\u2019ve been writing a ton about #iBuyers, actually, but I\u2019ve been doing it from iBuyerSpy.com. I encourage you to pursue my work there, and I vow to share some of it back here, as well. Here\u2019s a sample\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17096,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17096\/a-fun-fact-about-ibuyers-every-buy-box-is-redlining\/","url_meta":{"origin":16839,"position":2},"title":"A fun fact about #iBuyers? Every buy-box is redlining.","author":"Greg Swann","date":"September 22, 2020","format":false,"excerpt":"The image is a map of Zillow's sold iBuyer homes in the densest parts of Metropolitan Phoenix. See that Madonana-like shape running West from the I-17 Freeway. Looks like a pregnant single-mom, doesn't it? The poster-child of fair-housing law, right there on the map. Looks like redlining, doesn't it? I've\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/09\/Screen-Shot-2020-09-22-at-9.57.47-AM.png?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":18028,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18028\/overnight-news-if-ibuyers-sell-slowly-and-weakly-in-an-impossibly-easy-market-how-much-worse-will-they-do-when-the-worm-turns\/","url_meta":{"origin":16839,"position":3},"title":"Overnight News: If iBuyers sell slowly and weakly in an impossibly-easy market, how much worse will they do when the worm\u00a0turns?","author":"Greg Swann","date":"April 7, 2021","format":false,"excerpt":"Real estate is kids and dogs, but real estate sales is entrepreneurs. I was interviewed yesterday on the future prospects of the big-name iBuyers, whose numbers are everyday augmented by many, many no-name iBuyers. I'm a bear, of course. When the market turns, the slow-selling pontificating poindexters will discover why\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":17511,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17511\/overnight-news-is-the-incumbent-is-now-the-real-estate-broker-elect-market-swing-threatens-overdue-shellacking-for-doe-eyed-ibuyers\/","url_meta":{"origin":16839,"position":4},"title":"Overnight News: Is \u201cThe Incumbent\u201d now the Real Estate Broker-Elect? Market swing threatens overdue shellacking for doe-eyed\u00a0iBuyers.","author":"Greg Swann","date":"November 22, 2020","format":false,"excerpt":"Seen any commercial TV lately? Have you spotted ads from local real estate vendors offering to make cash offers for homes \u2013 right now, on the spot, in any condition? \"That's not really iBuying!\" the iBuyers will shout \u2013 and it's true. It's flipping Homevestors.com-style \u2013 Ug's uglier offspring. What\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":17955,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17955\/overnight-news-big-budget-ibuyers-manage-to-suck-even-worse-even-in-the-easiest-real-estate-market-ever\/","url_meta":{"origin":16839,"position":5},"title":"Overnight News: Big-budget iBuyers manage to suck even worse \u2013 even in the easiest real estate market\u00a0ever.","author":"Greg Swann","date":"March 11, 2021","format":false,"excerpt":"There's iBuyer news today \u2013 half truth, half lies \u2013 but, as usual, the big news is missing: The big-budget iBuyers are by-now swarmed by many, many mini-iBuyers. Hardly anyone knows how to build a magnetic website, but lots and lots of people know how to flip houses. Here's more\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=16839"}],"version-history":[{"count":7,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16839\/revisions"}],"predecessor-version":[{"id":16847,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16839\/revisions\/16847"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=16839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=16839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=16839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}