More brokerages entering the iBuying business
NEW YORK – April 24, 2019 – To compete against the growing list of firms in the iBuyer world, brokerages are entering into the race of instant offers. Keller Williams plans to launch its own iBuying service next month called Keller Offers.
Keller Offers will first launch in the Dallas-Fort Worth market, and then expand to six to eight "major" markets by the end of the year, MarketWatch reports. The company plans to devote $100 million to instant offers in 2019.
"We see iBuying as an important additional offering for our agents to offer to home sellers," the company stated.
Unlike several other iBuying programs, Keller Offers consumers will have a fiduciary (a Keller Williams real estate agent) serving them in selling their home via the instant offer route.
"While we believe the addressable market for iBuyers represents less than 10 percent of the overall market, we do see this as an important additional option for KW agents to be able to offer their sellers," Keller Williams spokesman Darryl Frost said in a statement. "Our goal is to minimize the cost to the consumer."
The iBuying movement has caught the attention of the real estate industry. Wall Street has invested in millions to buoy startups in the space. The growing iBuyer firms use technology to make instant cash offers to sellers who want a quicker, more convenient sale – one that also bypasses listing the home publicly in the MLS.
Keller Williams' announcement follows on the heels of iBuying giant Opendoor, which launched a new initiative called Opendoor Agent Partner Program, which also adds real estate agents to the iBuyer process. Opendoor says that it wants to partner with real estate agents they can pair with buyers and sellers that choose the traditional option or if a home doesn't fit inside Opendoor's buy criteria.
Agents are finding ways to take advantage of an iBuyer world. Coldwell Banker, Keller Williams, Redfin and ERA are among the brokerages that have been testing their own version of an iBuyer-type program. Their programs, however, are being created to ensure that real estate agents remain at the center of the transaction, no matter which selling option a homeowner prefers.
How big a bite can iBuying take out of the market?
Dod Frasier, Opendoor's vice president of capital markets, told MarketWatch that he does not believe instant offers will gain traction in every market. "Real estate is a big market," Frasier says. "But we are a great option for a subset of customers."
Source: "Sell Your Home With a REALTOR® or an Algorithm? Maybe Both." MarketWatch (April 22, 2019)
© Copyright 2019 INFORMATION INC., Bethesda, MD (301) 215-4688
Information provided by Florida Realtors. Click here to see the original article.
Reprinted with permission Florida Realtors. All rights reserved.