• By Jesse Shemesh, Point Acquisition

How iBuyers and technology are changing the real estate market

The real estate market is affected by multiple factors: the money supply, employment, demographics, and the Federal Reserve System to name a few. These determinants have long histories with the buying and selling of property. However, in recent years, technology inserted itself among market variables in the form of iBuyer online platforms. How do these companies change the equation? Do their streamlined procedures make successful closings more likely or less so? And finally, can these companies entirely replace the traditional broker/agent? Such questions warrant a closer look at these internet-based enterprises.How Do iBuyers Work? These programs, such as our recently launched iBuyer platform and Zillow’s Direct Offers make instant cash offers on properties that are submitted through the platform. Through a combination of internal computations, proprietary models and data, market cap rates, comparable sales/leases and price psf computations, in junction with owner-supplied information, input from real estate service providers (architects and zoning attorneys), and on-site inspections, we come up with an offer in as little as 48-72 hours.Advantages OverTraditional BrokeragesiBuyers are a potentially attractive option for sellers because they have the certainty of selling their property to qualified buyers who have the wherewithal and financing to close. They might not be getting top dollar (a good comparison would be selling your car back to a dealer versus a private-party sale), but sellers could be out of their properties faster thus saving money on holding costs (time is money). READ MORE

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