Opendoor and Redfin teaming up to push more iBuyer offers to more sellers in more markets. It’s big news — and it brings the future of the industry into clear focus.
For those who aren’t familiar with the term, “iBuyers” are companies that have raised billions of dollars to buy homes directly, do home improvements, and then sell them for a profit, eliminating agents in the process. Flipping homes is an old practice, but these new players are starting to do it on a massive scale. Owners can sell their homes with just a few clicks, but the iBuyer companies are the ones who keep all the profit.
Compass and my approach and philosophy is different. Companies like Compass are trying to help sellers get the absolute best price they can for their homes. We believe it is our responsibility to help everyone maximize their value because we know how much of their lives, their dreams, and their financial security is tied up in this one sale. That’s the whole reason that Compass Concierge exists. Concierge lets sellers earn the increased profits from home-improvement services, while iBuyers keep the profits from home-improvement services for themselves.
In our vision for the future, the incentives of the company, the agent, and the seller are all perfectly aligned. We all want the home to earn the best possible price, in the shortest amount of time, with the least possible hassle. When a seller is in a difficult situation — mid-divorce, recently widowed, struggling to find work —they can use Concierge to help get all of the value they deserve from their home so they have the resources to start the next chapter of their lives. Investor / home flippers just see an opportunity to make more money.
Regardless of its convenience, the investor / home flipping model is a bad financial deal for the seller since in order for it to work for the investor they have to take profits from the seller. Imagine if you were a seller and you got an instant offer on your home and decided to sell immediately. Now, imagine how that excitement might turn into regret and even anger when you saw your home being listed for 10% more just a few days later. That’s real money that could have gone towards a child’s education, or your next home, or more comfort in retirement. What’s more, that’s your money.
This Opendoor+Redfin partnership is serious. The industry is changing faster than ever before. Companies are choosing alliances. The future is, once again, not being created by the brokerage firms who serve agents and clients but by companies designed to devalue and discount.
I am proud to be a part of Compass - the only company putting hundreds of millions of dollars into a program like Compass Concierge, increasing the value of our sellers homes by fronting the cost of staging and home-improvement services with no interest or hidden fees.