What’s every bad Realtor’s best friend? Starvation. When you suck at real estate, your stomach will find a way to convey that fact to you, even if you deny every other evidence.
Zillow should be so lucky.
◊◊◊ Spanking the Phoenix iBuyers: OpenDoor, OfferPad, Zillow, The Bottom Line.
When you have unlimited funding, as the iBuyers do – for now – you lack the motivation to discover your endeavors are failing. Worse, when you are your own agent, you don’t even have the advantage of angry clients to help you find a job you can handle. Almost no one survives in this business, and those who do have become very good at what they do. No one is the best at everything, but people who last in real estate are good at making enough money to keep the lights on year after year.
The iBuyers, not so much. I gather that their real estate theory is theory-hostile, though I really don’t care. They are clearly atheoretical in their praxis – that’s the Greek way of saying they do everything half-assed. I took the Phoenix iBuyers apart over the last week, and I think all three of them are agog to discover how badly they suck at this job.
That’s news: I doubt the iBuyers knew – until I told them in numbers – just how badly they are doing as real estate investors and retailers.
But all of this is good news for Realtors: The iBuyers SUCK at real estate! What’s more, because they have unlimited funding, iBuyers have no ‘stomach-driven’ way of getting better.
They’re easy to spank on resale – even easier on repairs. Negotiations is how they play real estate, so they’ll work hard to keep you from falling out. There are sweet stunts you can pull on the buy-side, as well. And I have fun ideas for pitching product to them, too.
The point is this: The iBuyers are no threat. They are a feast – prepared just for you by Wall Street.
If you read my articles on LinkedIn, you will learn a ton. If you get a chance to hear me speak, you will learn tons more. But if you learn nothing else, get a good tight grip on a fact the iBuyers are only just now figuring out:
Not everyone can do this job.