Just a few thoughts on this dog-day Summer Weekend…
Zillow had to spend $3.5 billion to take out Trulia and launch Realtor.com into oblivion.
I don’t think Zillow will have to do the same with Opendoor. They will just bury them. Their cash and brand power is overwhelming at this point. And I suspect Z has been in the iBuyer game long enough now to eat up much of the operational lead Opendoor had.
Opendoor (and also Offerpad) have both announced “list it with us” brokerage options recently in an attempt to monetize more of their offer requests. But this is a tough slog. Just look at Redfin’s long walk to scale.
So, second tier iBuyers may increasingly become merely the acquisition arms of institutional buyers/landlords, which is kind of a bummer.
I wonder if a time will come when people will actually ask, “what are you going to do with my home once you buy it?”
They have launches their new business models in certain parts of the the country, Here is what people are saying;
It’s conclusive – the Zillow Offers program is only good for sellers who want/need BOTH quick cash and max convenience, because the cost is heavy.
TIPS TO HOME SELLERS:
- Don’t find yourself in a position where you NEED to cash out in a week.
- If you want max convenience, hire me and we’ll handle everything.
- Don’t get suckered by the bait-and-switch.
The word on the street is that they are pushing down the zestimates to help convince sellers to take less – Keep a record of your zestimates!
Zillow will likely be successful, however, because they don’t mind spending $100 million per year on advertising to promote their brand – and it works.
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