MAPS & FACTS™ UNLIMITED, INC. specializes in GIS (Geographic Information System) produced, architectural, driven, based, demographic, educational, and real estate maps to home buyers, brokers, developers, attorneys and lenders.
Map of the Month – October 2018
iBuyers: Flippers, Brokers, or Disruptors?
Maps & Facts has noticed an increasing number of transactions involving iBuyer companies. The term iBuyer is a growing “internet” application for selling and buying houses on-line. iBuyer companies will offer to buy your house, sometimes sight unseen, at fair value (less a transactions fee and necessary repairs); sometimes in hours. No listings, no showings, fast closing, certainty. Then they list your (former) house on their website / app for buyers to view, inspect, buy. They carry all the costs between the sale dates.
According to their websites, these are well funded national companies using enhanced AVM (Automated Valuation Model) valuation techniques. iBuyer companies include OpenDoor, OfferPad, Zillow, Knock, and Realogy (Coldwell Banker).
Using our robust transaction database, we found that in 2017 the two largest iBuyers by volume in Maricopa County were OpenDoor and OfferPad. To analyze the median spread between the prices these iBuyer’s paid and the prices at which they sold, out of 1,700+ sales we identified 450 “paired sales”, (Re-sales of the same house) with the following results: