Today's topic will be about this developing trend of what are called "iBuyers", which are buyers that are more "convenient" to a seller, and who buy houses "as-is" with "all cash". In today's controversial environment of taking a position, this sounds all too familiar.  I would like to bullet point some of the problems of this iBuyer Trend: 1. iBuyers are really iBrokers The "buyers" really are intermediaries for larger venture capital companies, one of these companies, Opendoor, just closed on $300 million more to bring their total funding over $1 billion to buy single family homes for rent and for flip. It is estimated to spend more than $4 billion per year buying homes . Though the terms of the funding are not public, no one hands someone else $1 billion with no strings attached, they have their guidelines and what they can and can not do and are functionally no different than brokers.  2. Therefore, more i...

Greetings, On July 3, 2019, the day before independence day, a public company discount broker based in the UK announced they would be leaving the US Market, this is after losing 75% since starting operations in 2017. Additionally, they pulled out of Australia to "focus on the UK market", aka, they are circling the wagons. Without delving too much into their business model. This is a good example of what happens during 'transitional' years in real estate. Cut rate brokers offer their value proposition as a 'lower fee' or 'rebate commission' rather than knowledge and skill. Based on the price point of real estate being transacted, as well as the increasing costs for materials and labor, the rebate offered can easily be made up for by a competent agent. Oftentimes, 'commissions' are given other names, such as 'service charge' or 'marketing fees', which, unlike commissions, are due whether or not the home sells. Things to...