The Red Dot, August 2018: The Truth About iBuyers – MLS

One of the most important developments in the past few years has been the emergence of “iBuyers” – companies who leverage technology to buy and sell homes directly from and to consumers.

The pioneer was Opendoor.com, which launched in 2014, but it was quickly followed by others such as Offerpad and Knock, who have attracted tens of millions in venture financing. Zillow’s entrance into iBuyer space, first in 2017 as an intermediary , and then in 2018 as a direct buyer/seller itself, validated the entire space.

And yet, most observers and industry experts simply get important things wrong because they’re looking at iBuyers through the prism of the real estate industry. Since the iBuyer phenomenon has the greatest chance of creating true disruption in the underlying process of buying and selling homes, it is worth looking at in some detail.

In this report, we give the iBuyer the Red Dot treatment.

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One of the most important developments in the past few years has been the emergence of “iBuyers” – companies who leverage technology to buy and sell homes directly from and to consumers.

The pioneer was Opendoor.com, which launched in 2014, but it was quickly followed by others such as Offerpad and Knock, who have attracted tens of millions in venture financing. Zillow’s entrance into iBuyer space, first in 2017 as an intermediary , and then in 2018 as a direct buyer/seller itself, validated the entire space.

And yet, most observers and industry experts simply get important things wrong because they’re looking at iBuyers through the prism of the real estate industry. Since the iBuyer phenomenon has the greatest chance of creating true disruption in the underlying process of buying and selling homes, it is worth looking at in some detail.

In this report, we give the iBuyer the Red Dot treatment.

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