Less Competition for Buyers From Opendoor, Zillow, and Redfin
Updated: Jun 24, 2020
With cuts to mortgage rates, there are more people than ever looking to buy homes. This increased competition could make it a little harder for you to get the home that you want, but there is one side of the market that you will no longer have to worry about: instant buyers. Instant buyers, or iBuyers, are real estate investors that use an automated valuation model and other technologies to make cash offers on homes quickly, typically to flip the home for profit. Some of the biggest names in this niche real estate business are Zillow, Opendoor, and Redfin.
Though these platforms are still listing and selling homes, they have halted their iBuyer programs to do their part in reducing the spread of the Coronavirus. Many instant buyers find their investments through open houses, which is an unnecessary part of the real estate process during a time when social distancing has become more important to sellers. Some companies are seeing bigger changes than others. Citing the recent pandemic, Redfin is selling a large stake of its company to a venture capital firm. There are many reasons why you might want to sell your home for cash. Perhaps you are relocating for work, getting divorced, inherited a property, getting rid of a rental property, or you simply don't want the hassle of listing. Instant buyers only make up a small portion of the market and this halt in business will only be temporary. If you were relying on an iBuyer to sell your home, don't worry—there are more options out there. In the state of Colorado, Real Estate has been declared an essential business. Therefore, regular real estate agents are still out there ready to help you sell your property.