Losing Billions! iBuyer Real Estate Tech Companies Losing Money
iBuying is not a new concept. Mom and pop investors have been buying and flipping homes for years. The difference is that these ibuyers are a single point of entry for someone wanting to sell their home. opendoor, Zillow and offerpad are the 3 largest ibuyers. While Zillow stopped ibuying last year after they announced they would lose $800M in 2021 alone, the recently announced they would partner with Opendoor and get back into buying.
Another revenue stream ibuyer companies like Opendoor and Zillow have are selling leads. Anytime a person goes into opendoor or zillow and enters information, that information is sold to real estate agents around the country as a “lead”. usually these leads are sold to numerous agents. Don’t be surprised if you go on Zillow or opendoor and put your information in and get inundated with calls from real estate agents.