Cash for Homes
The ibuying programs are the old-fashioned, luddite "we buy homes for cash." The largest difference between the two is the ibuying program is done via the internet. Started in 2014 Opendoor set out to gain market share from traditional, resale home brokerages by using computer technology. Since then others have gotten on the bandwagon, Zillow and Redfin, as well as other brand-name, traditional brokerages, such as Keller Williams.
The concept of ibuying appeals to home sellers who want convenience. The hassles and expense of staging, showing and making repairs are set aside for a quick, all-cash sale. As with anything that is quick and easy, there are strings attached. After inspection, an all-cash buyer may decide not to honor the agreed upon price and offer the home seller less. Rather than paying a "commission," the home seller will be charged various fees that are non-negotiable as cost of the sale. These fees can add up quickly and impact a home seller's net proceeds. For some home sellers, though, ibuying may be the perfect solution for their needs.
see "What sellers need to know about ibuying platforms," Bankrate, October 24, 2019
Pausing Temporarily and Indefinitely
Zillow is shutting down their ibuying platform only in California to comply with the governor's "shelter in place" order. Nationwide Zillow's ibuying continues to be available to home sellers.
Opendoor suspended their ibuying program nationwide based on recommendations from the CDC stating their main priority is the "safety and well-being of their customers, employees and the general public."
Redfin also followed and put a stop to their agents from showing open houses to prevent the spread of the Coronavirus, as well as suspend their instant offers program. Redfin CEO Glenn Kelman is quoted as saying, "We expect to be making instant offers again soon, but only when the market becomes more predictable."
see, "Opendoor, Zillow begin pausing homebuying, citing coronavirus concerns," Housing Wire, March 20, 2020.
Time will tell if the Coronavirus crisis will cause the housing market to decline, especially in California. I will be watching the numbers in the coming months to see which way home prices are headed in the Inland Empire.
Coldwell Banker Blackstone Realty has a network of investors with cash looking to buy homes. If you need to sell in the least amount of time with the least amount of hassle, this might be a good option for you. Please feel free to reach out to me for more information. Consultations are free and at no obligation.
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