![]() He also created the first iBuyer program. So, you have a potential catastrophe trying to buy homes using a computer program." "If they’re going to buy it based on some computer program, they’re doing a risky thing. So, you have a potential catastrophe trying to buy homes using a computer program," said Shiller. If they’re going to buy it based on some computer program, they’re doing a risky thing. "If they don’t do the traditional market research by getting an appraiser to look at the house. Shiller co-created the index and says caution should be the word of the day. Home prices in Phoenix are rising faster than in any city in the country, according to the latest S&P CoreLogic Case-Shiller Index. Right now, it looks like it’s softening, so if it behaves like an inefficient market, you can predict that it will soften further," said economist and Nobel Laureate Robert Shiller. iBuyers are quickly sweeping up much of what’s available, driving home prices up even more. The closings are fast and in all-cash, appealing to sellers who need the cash for the next down payment or even rental.Īnd that’s a potential problem - with Phoenix's population growth, the city has a critically low level of homes available for sale. But, if they ignore it, I think it’s at their own peril because others are going to be taking advantage of it," said Beasley.īut what exactly are iBuyers taking advantage of? The answer is convenience. I like to think of it kind of like toothpaste, kind of once it’s out of the tube, it doesn’t tend to go back in. "The beauty of technology - it’s the ultimate democratization tool," he said and urged the real estate industry to catch up. Schaudt says the process of selling this way was strange and felt impersonal.īut, Gary Beasley says iBuying should be embraced as a technology that brings power to the customer. And it’s recently come off their website, so I assume they found a renter for it. And I saw how much they were going to rent it for. "They’ve re-posted pictures, this First Key company has re-posted pictures, and they painted the inside, and it looks really nice. ![]() She found herself driving by to visit the house to see how it was doing after it sold. "I cross-referenced a bunch of the addresses and found out they were all then being rented out by the same rental management company," she said. She heard me talking about this story and said she just sold her house to an iBuyer and wanted to know more about it. ![]() And, it was less than 20 hours, when it hit the MLS from post to offer," said Sky Schaudt, senior digital editor for KJZZ. "So, I put my house on the market at the end of June - June 27, I think. Now, with foreclosure inventory shrinking, investors are turning to traditional home owners to stock up on houses by using iBuying technology. So you have a lot of demand," said Gary Beasley, CEO and co-founder of Roofstock, an iBuyer company that purchases homes and then converts those properties into rentals.Īfter the Great Recession, institutional investors became some of the biggest buyers of foreclosed homes, buying properties at a discount and converting them into single-family rentals. "You’ve got the highest employment growth on a percentage basis of any of the large cities in the country. ![]() And it is quickly gaining momentum in Phoenix. It’s done on behalf of real estate investors who then bundle the properties for resale. It’s called iBuying, where real estate companies buy homes directly from homeowners with all-cash offers without an appraisal. Now, a new technology-driven process is selling homes even faster, drying up the market and driving up home prices even more. A home for rent in north Phoenix in September 2019.īuy or rent? Sell or stay? These are tough questions to answer for anyone, but especially tough in Phoenix where home prices are rising faster than anywhere else in the nation and there’s not enough homes available to keep up with demand. ![]()
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