{"id":18586,"date":"2021-11-08T05:53:01","date_gmt":"2021-11-08T12:53:01","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=18586"},"modified":"2021-11-08T05:53:01","modified_gmt":"2021-11-08T12:53:01","slug":"overnight-news-whats-the-future-of-ibuying-ask-any-flipper-who-cant-do-the-math","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18586\/overnight-news-whats-the-future-of-ibuying-ask-any-flipper-who-cant-do-the-math\/","title":{"rendered":"Overnight News: What\u2019s the future of iBuying? Ask any flipper who can\u2019t do the\u00a0math."},"content":{"rendered":"

\"Ya

\u201cI\u2019ll say this for people: No dog<\/u> defends another dog\u2019s\u00a0food.\u201d<\/p><\/div>What will remain of the iBuyers, once the market turns?<\/p>\n

As noted long ago, iBuying as such is a very stupid idea. A flipper came up with it, and it may be that he didn’t really even get the math of flipping, he just started at the perfect time \u2013 the bottom of the Big Short real estate bomb; iBuying has lived in no other market than this one, steadily steaming upward for years, now screaming like a tea kettle. In any case, owning a house to fix and flip for resale only makes sense because that’s what you have to do in order to do the rest \u2013 where owning non-producing assets (financed!) is always a bad idea. Even then, you have to cheat the original seller \u2013 you have to buy even lower the the home’s actual as-is Fair Market Value. You have to control your turnover expenses. And you have to get in and get out fast.<\/u><\/strong><\/em><\/p>\n

Corporations can’t do anything fast, nor can they control costs. Buying low is only possible where Zestimates don’t grow, so the pure iBuyer business model would seem to have been completely frolicked ab initio<\/em> \u2013 which is of course what I have been saying all along.<\/p>\n

iBuyers with a value-add like Curbio or EasyKnock may have a business for a while, and Redfin uses the promise of iBuying to upsell its slow-moving discount listings. Pacaso is an international small-business: A niche offering with any profit potential emerging from its being a time-share: The only winner will be the management company, in the form of recurring fees, and today’s buyers will probably never see a resale return on their “investment.”<\/p>\n

That is to say: None of them will matter, going forward. The claims that Zillow has some great data-prescience have always sounded absurd to me: Real estate is a black swan business, and Zillow has seemed to me to be nothing but flat-footed for years now \u2013 since Spencer Rascoff did the math on iBuying and went off to find what he hopes is Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cI\u2019ll say this for people: No dog defends another dog\u2019s\u00a0food.\u201dWhat will remain of the iBuyers, once the market turns? As noted long ago, iBuying as such is a very stupid idea. A flipper came up with it, and it may be that he didn’t really even get the math of flipping, he just started at […]<\/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":[29,26,6,5],"tags":[],"class_list":{"0":"post-18586","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-group-therapy","7":"category-lending","8":"category-marketing","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":18128,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18128\/overnight-news-the-secret-to-zillows-flavor-of-ibuying-sucking-at-real-estate-helps-them-sucker-real-estate-agents-which-is-where-the-real-money-is\/","url_meta":{"origin":18586,"position":0},"title":"Overnight News: The secret to Zillow\u2019s flavor of iBuying? Sucking at real estate helps them sucker real estate\u00a0agents \u2013 which is where the real money\u00a0is.","author":"Greg Swann","date":"May 10, 2021","format":false,"excerpt":"I wrote the other day about Zillow's losses on its iBuyer \"investments\" \u2013 incomprehensible losses considering that this is one of the few times when it is possible to make money on non-producing real estate. The losses on iBuyer \"investments\" can be stupefying from the point of view of any\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":18678,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18678\/ibuying-dies-very-soon\/","url_meta":{"origin":18586,"position":1},"title":"#iBuying dies very soon.","author":"Greg Swann","date":"March 24, 2022","format":false,"excerpt":"My apologies for not writing here lately. I need the server for business, but when I write here I get hammered from without and then lose days proving that I am not implausibly engaged in digital self-harm. In any case: You can see me defending the headline here.","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\/2022\/03\/xbwhrt87mq0-1024x683.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2022\/03\/xbwhrt87mq0-1024x683.jpg?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2022\/03\/xbwhrt87mq0-1024x683.jpg?resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2022\/03\/xbwhrt87mq0-1024x683.jpg?resize=700%2C400 2x"},"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":18586,"position":2},"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":[]},{"id":18576,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18576\/overnight-news-astute-billionaire-rich-barton-ceo-of-zillow-and-the-incumbent-of-everything-brad-inman-can-sell-out-takes-only-three-years-to-discover-he-sucks-at-selling-real-estate\/","url_meta":{"origin":18586,"position":3},"title":"Overnight News: Astute billionaire Rich Barton, CEO of Zillow and The Incumbent of everything Brad Inman can sell out, takes only three years to discover he sucks at selling real\u00a0estate.","author":"Greg Swann","date":"November 3, 2021","format":false,"excerpt":"Well. It turns The Incumbent has a calculator on his phone. Even billionaires can identify a stupid business \u2013 eventually. On July 19th, 2019, I took OpenDoor's business praxis apart in public, demonstrating all their foolish marketing errors. Hundreds of OpenDoor staffers read that article. I think Eric Wu's parents\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":18596,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18596\/overnight-news-dunning-kruger-real-estate-when-you-dont-have-a-need-we-dont-have-a-clue\/","url_meta":{"origin":18586,"position":4},"title":"Overnight News: Dunning-Kruger Real Estate: \u201cWhen you don\u2019t have a need, we don\u2019t have a\u00a0clue!\u201d","author":"Greg Swann","date":"November 13, 2021","format":false,"excerpt":"I am enduringly annoyed by the iBuyers. You may have noticed. The most significant factor in Zillow's ignominious retreat from iBuying is that it was entirely a Dunning-Kruger exercise: Rich Barton and his devoted team of seven-figure eggheads actively and persistently refused to learn anything about real estate brokerage. All\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":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":18586,"position":5},"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":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18586","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=18586"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18586\/revisions"}],"predecessor-version":[{"id":18587,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18586\/revisions\/18587"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=18586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=18586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=18586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}