I think CRMLS did an excellent job of summarizing iBuyers in a recent blog post.
Curious About iBuyers? Check Out This Helpful Guide
Fundamentally, iBuyers are companies (or divisions of companies) that make fast, automated cash offers on real estate listings. Then they turn around and sell the listings, potentially remodeling or otherwise updating the properties in the process.
Some critics claim the iBuyer model is no more than an update on traditional home flipping. Proponents, however, point to the technological advances iBuyers have made. Each iBuyer has its own automated valuation model (AVM) that helps them price listings – some even using machine learning and neural networks to come to a price estimate. When it comes time to sell the listings, some iBuyers incorporate technologies such as augmented reality and identity verification to make the buyer’s experience seamless, painless, and high on the “wow factor.”
The blog post is very concise. It also talks about how Cloud Investor Connect works in their market and how it lets agents participate.
There’s been a lot of new activity in this space as current players are expanding in to other markets and new entrants like Bungalo are getting in to the game. I’m sure iBuyers will be a good topic for the hallways at CMLS.
