I asked the question in the headline this morning in a comment on LinkedIn, and now I am chagrined that I did not think to ask it a year ago, when people were yammering at me about the referral-fee value of discarded iBuyer leads.
Fewer foals, fewer farriers, so the more common iBuying becomes the more competitive traditional real estate listing will become – at the same time that the ‘leads’ thrown off by the iBuyers come to be less-and-less worth pursuing.
All they can actually tell you about the ‘lead’ is: “We passed.” Every other institutional buyer did, too? Every other would-be lister? First to paperwork is the winner, which is why dicking around on the buy side will end pronto. Hold out for FMV, sellers. If this dipshit won’t pay, the next one will.
There are listing opportunities at the margins – just as some few farriers still find work – and you can list for people who like people or who care about maximizing their equity. Subtract those people and their homes, and the rest of the market is iBought in very short order – for as long as those fools have funding.
iBuyers can’t make money on their real estate investments, for now.
iBuyers won’t make much on ancillary streams of income, despite their blabber.
And iBuyers won’t make money by remarketing seller ‘leads’ for very long…
Icarus or Daedalus? Neither story ends well…