iBuyer, or instant buyer, models have long been part of the real estate equation. These almost instantaneous transactions allow sellers to get a valuation of their properties online via AI algorithms with the option to sell on the spot. This adds a whole new level of ease, confidence, and relief for sellers, which has prompted traditional brokerages to follow suit and launch their own iBuyer programs.
Companies such as Zillow, Redfin, OfferPad, and Opendoor are major players in the iBuyer arena. And while these companies only make up $10.6 billion or 1.9 percent of the home sale market, their impacts are vast. Of course, Zillow Offers flew too close to the sun, but that’s a different story entirely.
It’s undeniable that the quick, all-cash model provided by iBuyers is an allure traditional agents have trouble topping. By streamlining the process, these startups allow more certain closings, simpler transactions, and better selling experiences. But here’s the kicker – more and more traditional brokerages are catching on.
Could the convenience provided by these institutional investors have a trickle-down effect that benefits all of us?
Keeping Pace With Progress
The increase in iBuying has shaped a new normal in the real estate industry. To compete with the quick cash and convenience, many agencies look for new ways to elevate the selling experience. This means offering quicker closings, new financing options – some even offer their own iBuyer programs. JPAR launched JPAR Instant Offers in April 2019, and Keller Williams entered this movement shortly thereafter with the introduction of Keller Offers. Both are iBuyer platforms that work in tandem, not in competition, with agents.
Raymond ‘RJ’ Jones was hired to spearhead this department last summer as the iBuyer boom reached new levels.
“The idea is to create more competitive advantages for our agents,” Jones says. “To stay well ahead of the relentless pace of disruption and innovation in our industry, we intend to aggressively expand our platform of value to agents and their clients in buying, owning, and selling a home.”
A Better Experience For All
With the merge of traditional and iBuyer programs, the seller comes out as the true winner. Since there are pros and cons to each model, it’s exciting to see such flexibility arising from the competition. With programs like Keller Offers, JPAR Instant Offers, and others, sellers experience the ease of iBuying but with a human touch and higher offer.
Talk about a case study for competition.
