The era of iBuying is upon us - threat or tailwind?

[Adam Nelson]

Did anybody else read the NY Times article about iBuying this week? For those who don't know, iBuying is essentially an instant offer solution for individuals that want to sell their homes. The seller uploads a few pictures, fills out a form, and receives an offer within 24 hours on their home, paid out in cash. Zillow Offers, Offerpad, Opendoor are a few of the entities with billions of investor backing making moves in this space, and things are only heating up. I want ask the community, how do you think this will impact the Joe and Jill investors of the world? And how are you preparing (if at all)?

[Greg Scott]

There will be lots of people that figure out how to make a ton of money off the iBuyers.

Here is the recipe:

• Find any completely run down house that is valued below the neighborhood.  
• Fix it up just enough so it looks good in a picture.  
  • Use the cheapest paint and materials possible. 
  • Paint over any mold.
  • Don't worry about the cat pee / fire damage / musty smells cause you can't see that in a picture. 
    
• Sell at a profit.

The only way these companies won't get killed is if they add in an inspection period.  But, then they just become another traditional buyer.