Market Price of iBuyers of a Neighborhood ?

Can iBuyers set the market price of a neighborhood? Do they have enough control with the homes or purchasing that if new ones come on the market and they buy it for an increased price, that all of a sudden all of these other ones that they had recently purchased that they could make some money on it?

Can they get together and collude? Do they have so much power that that’s the facts?

So we’re going to kind of discuss that more right now. I do have an article to reference here. I do want to show how this kind of went down on social media, show how Tik Tok inspired this here in particular. And this is an article that was brought to us on Inman.

So as we take a look at this and bring it up, we will give you this link and chat that in for you.

So you have it handy and you can do some research on this one here. But down below is some, some random dude.

And what he did is he’s a realtor, and he put in a Tik Tok video that got a lot of traction, apparently, and it got so much attention that Redfin and Zillow and offer pad and the CEOs of these different companies were responding to this video in particular on their practices and what they do.

So it’s really unique to get such traction. But they did, and that’s why we’re bringing up to you. So in this video, what this gentleman suggests here, if we take a pause for a quick moment there right there, perfect that he says that Zillow has that this unnamed company.

But I believe he’s referring to one of these huge buyers that I had just previously mentioned that if they go out and buy up a bunch of homes in the neighborhood for a set price and then all of a sudden go out and purchase one additional property at a higher price, then they have now created new comparables in that market for this new higher price.

So he gives an example of going in and buying 30 homes in the neighborhood for the same exact price of three hundred thousand. Then, he says, if they go in and buy one property and overpay for one of them and pay three 40 for that same home, now this price, they overpaid here for the forty thousand.

Now he believes that in this with this supply and demand issue, that he points out that he believes that they’ll now make forty thousand additional on each of these other properties because they now have a new comparable home. So I’m not sure that they necessarily owned thirty or thirty one homes in particular in any specific market.

Buy them all for the same price and would potentially overpay for one property in particular. Now, could they? I suppose so. There’s a lot of devious plans that could be out there for them to do it. But the CEOs get out there and respond and discuss some things about this, and they kind of say, like, you know, we don’t concentrate all in that same exact place, and that’s not really our policy.

And whatever that would happen to be. But I bring this article to you so you can maybe watch it so you can see the power of putting something out there that’s maybe controversial or maybe that’s, you know, newsworthy to report on that, you get a lot of traction.

So this was just something that this guy posted here. Maybe a bunch of people will be talking about it over the weekend and we have something additional for you to talk about. You know, the other day on our weekly workshops, Logan pointed out that he always likes to have something new and unique to talk about, and it just kind of gets back to real estate.

So maybe this is one of those items here in particular that you kind of have in your back pocket and you pull out and you’re like, Hey, did you see this? And it’s not you specifically as an agent saying, would you like to buy or sell a home today?

But rather what it is, is you pulling something out of your repertoire to discuss something that’s real estate related? Once you’ve done that and had that conversation, then as it comes up and they dive in deeper and they say, You know what, I was considering her, my friend Joanie was whatever those things happen to be.

Now you’re starting to have a substantive conversation about real estate, and you went around and didn’t say, Would you like to buy or sell a home today? I’m a realtor.

My name’s Mike Wright. And like whatever that is. So just trying to provide additional learning opportunities, additional things for you to share if this is important to you. Maybe you watch the video real quick. I’m not. I don’t have an account, so I don’t watch those types of things.

But this would be interesting so you can get some more details there. You can click on each of those links within this article and see exactly what’s going on here.

So we’re just reporting to you. You’re deciding, but now you have some additional things to share. Thank you for joining me. We’re done.

Episode Links

Tik Tok , Inman, Zillow, newsworthy , Mike Acquisto , Shana Acquisto , TNT 

Episode Recorded Live on YouTube 9.23.21

This & That

View all posts