Coronavirus pandemic exposes weaknesses of iBuyer model

Housing wire | April 06, 2020


The $1.6 trillion real estate industry is a tempting target for disruptors. Hundreds of companies have developed thousands of solutions to automate different parts of the process, making the experience better and faster in many ways. But these are mostly incremental improvements — streamlining valuations or verifications, or creating mobile ways to apply for a loan. All worthy endeavors, but not truly disruptive. One of the most recent efforts to overhaul the business of residential real estate is iBuying, spearheaded by Opendoor. What iBuyers provide, first and foremost, is certainty. Instead of listing their homes with an agent and hoping for the best, sellers can input property information and get an instant cash offer within 24 hours. If a seller accepts that offer, they can skip making repairs and choose their closing date.

Spotlight

This Federal Housing Finance Agency (FHFA) research paper documents the statistical forecast models that the modeling team has developed as part of the process for establishing the affordable housing goal benchmark levels for Fannie Mae and Freddie Mac for 2018 through 2020. The paper was prepared by Ken Lam, Jay Schultz, and Padmasini Raman of the Federal Housing Finance Agency.

Spotlight

This Federal Housing Finance Agency (FHFA) research paper documents the statistical forecast models that the modeling team has developed as part of the process for establishing the affordable housing goal benchmark levels for Fannie Mae and Freddie Mac for 2018 through 2020. The paper was prepared by Ken Lam, Jay Schultz, and Padmasini Raman of the Federal Housing Finance Agency.

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