{"id":17336,"date":"2020-10-20T09:29:25","date_gmt":"2020-10-20T16:29:25","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=17336"},"modified":"2020-10-20T13:17:52","modified_gmt":"2020-10-20T20:17:52","slug":"the-ibuyers-are-super-good-at-mulcting-buyers-agents-with-science-thats-why-they-cant-price","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17336\/the-ibuyers-are-super-good-at-mulcting-buyers-agents-with-science-thats-why-they-cant-price\/","title":{"rendered":"The #iBuyers are super good at mulcting buyer\u2019s agents with science. That\u2019s why they\u00a0can\u2019t\u00a0price."},"content":{"rendered":"

\"\"

Why are iBuyers nicking buyer\u2019s agents for commission? Why do broke Dairy Queens charge extra for napkins? It’s because they’re broke. Whatever bullshit they tell you \u2013 they’re broke.<\/p><\/div>Mike DelPrete<\/a> is worth reading, so long as you understand that, like The Inglorious Knob,<\/a> he is one with The Borg. Just lately I mentioned that the iBuyers in Phoenix are nicking buyer’s agents for commission<\/a> \u2013 which is just the kind of dick move you expect from financially-inept sociopaths. Coincidentally or not, yesterday DelPrete came forth with a defense of this stunt, insisting that it’s all a matter of the devilishly clever deep science that undergirds all things iBuyer.<\/p>\n

You bet.<\/p>\n

Why do broke Dairy Queens charge extra for napkins? It’s because they’re broke. Whatever bullshit they tell you \u2013 they’re broke.<\/p>\n

To accept DelPrete’s argument, you would have to insist that iBuyers are optimizing a marketing cost \u2013 to their long-term disadvantage \u2013 before<\/em> they optimize their resale pricing. Hundreds of iBuyer employees have read me on their pricing errors, but they have learned nothing. They are now convinced they have gotten good enough to cheat their marketing partners, when they have not yet even been tested by the market.<\/p>\n

Here’s the truth: The iBuyers are financial disasters in the best real estate market ever known to man: Suburbia after the riots. They are temporarily able to divest their inventory, but this is caused by the buyer frenzy, not by any new marketing skills acquired by the iBuyers. They suck at resale marketing, as will become obvious, yet again, when the market turns.<\/p>\n

The iBuyers are inept at real estate investing and marketing.<\/a> That’s why they have to cheat buyer’s agents. Stealing from the defenseless is all they’ve got…<\/p>\n","protected":false},"excerpt":{"rendered":"

Why are iBuyers nicking buyer\u2019s agents for commission? Why do broke Dairy Queens charge extra for napkins? It’s because they’re broke. Whatever bullshit they tell you \u2013 they’re broke.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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_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":""},"categories":[29,5,19],"tags":[],"class_list":{"0":"post-17336","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-group-therapy","7":"category-real-estate","8":"category-technology","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":17242,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17242\/a-sunday-sermon-for-the-phoenix-ibuyers-do-not-bind-the-mouths-of-the-buyers-agents\/","url_meta":{"origin":17336,"position":0},"title":"A Sunday sermon for the Phoenix iBuyers: \u201cDo not bind the mouths of the Buyer\u2019s\u00a0Agents.\u201d","author":"Greg Swann","date":"October 4, 2020","format":false,"excerpt":"I don't list a lot, right now, but I have been working for years to list perfectly: Highest\/safest\/soonest offer in minimal Days on Market. I haven't done my numbers in a while, but I've been under seven days, on average, for a long time, typically selling at or above Fair-Market\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\/muhammad-umair-TxQSdnp6D_k-unsplash-480x320.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":17353,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17353\/dear-daniel-morillo-heres-why-opendoors-houses-sell-so-poorly-even-in-a-blistering-real-estate-market\/","url_meta":{"origin":17336,"position":1},"title":"Dear Daniel Morillo: Here\u2019s why #OpenDoor\u2019s houses sell so poorly \u2013 even in a blistering real estate\u00a0market.","author":"Greg Swann","date":"October 25, 2020","format":false,"excerpt":"Once upon a time in my young career, I used to think about sending little notes to flailing sellers, telling them why their houses weren't selling. Arguably, this would have been a violation of Article 15 of the NAR Code of (ahem) Ethics, but it would have been bad form\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/10\/109-clipped.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/10\/109-clipped.jpg?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/10\/109-clipped.jpg?resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/10\/109-clipped.jpg?resize=700%2C400 2x"},"classes":[]},{"id":18567,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18567\/overnight-news-in-the-easiest-real-estate-market-ever-zillow-discovers-that-real-estate-brokerage-is-hard-work-and-decides-to-take-a-breather\/","url_meta":{"origin":17336,"position":2},"title":"Overnight News: In the easiest real estate market ever, Zillow discovers that real estate brokerage is hard work and decides to take a\u00a0breather.","author":"Greg Swann","date":"October 19, 2021","format":false,"excerpt":"Here's an interesting question: Given that we know that the iBuyers gouge buyer's agents, could it be that they also gouge all their other vendors? This could explain why Zillow has discovered that it is unfit for the house-flipping business: It can't get rehab contractors, and, for bizarre reasons unknown,\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":18590,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18590\/overnight-news-gaming-artificial-intelligence-is-as-easy-as-selling-your-white-elephant-to-an-ibuyer\/","url_meta":{"origin":17336,"position":3},"title":"Overnight News: Gaming \u201cArtificial Intelligence\u201d is as easy as selling your white elephant to an\u00a0iBuyer.","author":"Greg Swann","date":"November 10, 2021","format":false,"excerpt":"Here's a true fact about iBuying: The sellers are gonophs. Home-sellers are often gonophs, of course, and, even if not, the information asymmetry runs all their way: Neither your Buyer's Agent nor your home inspector is likely to identify that semi-annual drainage problem. But many of the sellers who turn\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":17248,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17248\/overnight-news-why-is-there-no-real-estate-news-on-weekends-you-know-when-real-estate-happens\/","url_meta":{"origin":17336,"position":4},"title":"Overnight News: Why is there no real estate news on weekends \u2013 you know, when real estate happens?","author":"Greg Swann","date":"October 5, 2020","format":false,"excerpt":"A beef I've had with the internet since there was an internet to have a beef with: Writers don't write when readers have time to read. Is this classism or cluelessness: Why would the public library be closed on Sunday, the day when taxpayers have time to go there? If\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"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":16626,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16626\/whats-your-new-ibuyer-strategy-steal-this-script-and-run-with-it\/","url_meta":{"origin":17336,"position":5},"title":"What’s your new #iBuyer strategy? Steal this script and run with it.","author":"Greg Swann","date":"August 21, 2020","format":false,"excerpt":"When I built iBuyerSpy.com, I had anticipated writing software that would have generated the main content of the site. This never happened. I ended up blogging there, which I should have done here \u2013 an error I am now correcting. By now, the big-foot iBuyers have switched to upselling traditional\u2026","rel":"","context":"In "iBuyers"","block_context":{"text":"iBuyers","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ibuyers\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/ThaliaRelocated.jpeg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/17336","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=17336"}],"version-history":[{"count":4,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/17336\/revisions"}],"predecessor-version":[{"id":17341,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/17336\/revisions\/17341"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=17336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=17336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=17336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}