2019 Aug 27th

Will iBuyers Take Over the Hoboken Real Estate Market?

The latest thing in real estate is the iBuyer.  The “i” stands for “instant”.  No, they are not in our market – yet.  Opendoor, one of the major players in the market is recently valued at $3.8 billion.  That’s right, billion.  It seems that iBuyers are the darlings of venture capitalists and they’ve got money to burn.  The big players, besides Opendoor, are Zillow (of course), Offerpad, Redfin and, soon, Keller Williams.  What all these companies have in common, and what makes them iBuyers, besides mountains of cash, is the ability to make an “instant offer” on your property.  Rather than working as traditional agents with a particular buyer, these firms come in, make an estimate on the valuation of your home based on an algorithm (think Zestimate), and offer to purchase it directly from you, quickly and for cash.  It is estimated that sellers take about a 15% discount for such speed and convenience in the sales process.

To get an idea of the growth of this market, look at this interactive map.  In just a few years, the iBuyer market has exploded in places like Atlanta, Charlotte, Raleigh, Orlando, Tampa, Dallas, Phoenix, Las Vegas and LA.  It’s only a matter of time before they head here.  Get ready, folks.  We are in for some serious market disruption.

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