DropOffer, an app that helps buyer agents approach off-market homeowners, is now available in six new markets, many of which are considered some of the nation’s most sought-after relocation destinations.
The company is now live in Atlanta, Phoenix, Dallas, Houston, Charlotte and Tampa, according to an announcement this week.
“DropOffer is excited to enter these markets because we know that homeowners want to sell privately and conveniently and are frustrated with iBuyers,” DropOffer co-founder Greg Burns said in a statement.
Burns also said institutional buyers, those looking to convert suburban homes into single-family rentals, aren’t able to meet sellers’ definition of value.
DropOffer’s app provides data on existing homes for agents and buyers to leverage when approaching off-market sellers. It gives buyers an alternative to what’s on the open market and helps agents extend their service beyond what’s active.
“Homeowners can register their home through the website and get connected with an agent that has real buyers in their area. DropOffer facilitates a secure, fair transaction process and makes sure every member walks away winning,” the company stated.
Uncovering inventory from off-market homes isn’t a new concept, in fact, listing agents solicit homeowners every day. However, DropOffer is taking a more targeted approach with a dedicated app that both home buyers and sellers can use.
Sellers can post their property on DropOffer’s “private” listing search to gauge market interest and hopefully find a qualified, motivated buyer without being fully exposed to the open market.
DropOffer, in essence, has created a private selling platform, a tool for consumers to discover homes facing limited competition, or as an alternative to iBuyers.
iBuyers continue to slice off a small share of the overall market. However, their presence is slowly growing.
Real estate technology consultant Mike DelPrete reported that 2021 saw the model account for 1.3 percent of all sales.
Zillow’s shuttering of its direct offer program rattled the sector, but 12 months out, it’s announced a partnership with its one-time largest competitor in the space, Opendoor, which is facing some of its own financial challenges.
At Inman Connect Las Vegas, DelPrete said he expects Open door to easily manage any pending downturn, concluding that Opendoor is well-managed and “they know what they’re doing.” And he said, “if you look at the business, it’s pretty clear they’re playing the long game.”
DropOffer’s co-founder, Kimani Clark, isn’t sold on iBuyers.
“Our studies have shown the demand for an alternative to iBuyers and conventional listing methods are very strong in these markets we are now launching in,” he said in a statement.