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DataDigest: iBuyers slide farther from hyped market disruption

Housing Wire

Offerpad is an instant buyer, or iBuyer, a company that gives sellers cash offers for their homes and attempts to resell the homes for a profit, sometimes after making renovations. iBuyers have consistently produced steep losses as the companies seek to establish national footprints. Opendoor lost about $1.4 billion last year.

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Inside Zillow’s misadventures in iBuying

Housing Wire

It may be difficult for algorithms and folks who are making a value assessment,” said Pasadena, California-based Compass agent Tracy Do, who has been encountering iBuyers in her deals in the past months, “particularly when they don’t know that specific market and buyer preferences.”. Then Zillow came along. Become a member today.

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Rocket cautiously wades into iBuying

Housing Wire

Rocket’s low-key entrance might be explained by the company not envisioning itself as becoming a true iBuyer: it will not be buying homes with the help of an algorithm, throwing a new coat of paint on the wall, and then reselling the home for a markup. In fact, Rocket has no interest in buying homes at all. Become a member today.

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Offerpad proposes iBuyer-agent marriage

Housing Wire

The success of iBuyers is the failure of real estate agents. But the iBuyer-agent relationship is shifting, as iBuying company Offerpad – the only iBuyer of the above group to ever turn a profit – is now quietly employing roughly 200 real estate agents, which the company calls “Solutions Experts.”. “We

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Redfin losses soar amid iBuying ramp up

Housing Wire

As with rival Zillow , Redfin grew its 2021 revenue and losses due to iBuying. The company’s properties division, home to iBuying arm RedfinNow, saw revenue rocket to $881 million in 2021 compared to $210 million in 2020, a year when the company partly paused iBuying due to COVID-19. Kelman said that the company is being cautious. “We

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Offerpad lands $600M more in credit to power iBuying

Housing Wire

Offerpad , a Chandler, Arizona-based iBuyer, snared $500 million in a revolving credit facility from an unnamed lender, according to a Dec. As Zillow tries to swiftly disentangle itself from iBuying, a one-time competitor may borrow over $600 million more to radically increase its instant home-buying purchases.

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iBuyer Offerpad goes public at $2.7B valuation

Housing Wire

The post iBuyer Offerpad goes public at $2.7B Offerpad’s transition escalates the rivalry between Rascoff and his former company Zillow. It also nudges Offerpad from intriguing upstart to another business vying to move iBuying from dazzling concept to profit making enterprise. Offerpad turned a $9.2 valuation appeared first on HousingWire.