AgentTechnology

‘IBuyers’ like Opendoor and OfferPad could boost sales, reduce commissions

Report: Opendoor and OfferPad could have 'important implications for Realtors'

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Platforms like Opendoor and OfferPad could drive Americans to move more frequently, resulting in more home sales, according to a report from investment banking firm Evercore ISI. Such companies, which the report terms “iBuyers,” use new technology to make quick offers on homes and close in days. They could also chip into real estate commissions and help homebuilders move their inventory faster, the authors wrote. The report underscores growing enthusiasm for iBuyers on Wall Street. Institutional investors are funding iBuyers or setting up their own, and their interest in the business model helps explain why Zillow Group created Zillow Instant Offers, which is essentially a marketplace for iBuyers. “We believe that investors should familiarize themselves with this new business model, as these iBuyers are likely to garner increased attention over the next few years,” the report said. “If successful, these iBuyers could improve liquidity in the housing market by re...