expand market share and gain dominance as the go-to real estate megahub but to do that they need inventory at whatever cost it takes their goal is to offer a service that would make sight unseen cash offers in NUMBER_TOKEN hours that would be comparable to what the seller would receive by listing their home on the open market for sale then after buying the home they'll sometimes make a few quick repairs before listing the home back on the market for sale ideally at a slightly higher price that gives them a bit of profit and that concept is gaining a lot of popularity like i buy our market share has been steadily increasing through markets like phoenix arizona NUMBER_TOKEN of homes in raleigh north carolina were purchased using this technology and throughout NUMBER_TOKEN that number is steadily increasing zillow is about to lock in NUMBER_TOKEN million dollars worth of funding to buy even more homes rocket homes just started their own eye buyer program redfin is racing to become the first major eye buyer to hit the chicago market and let's call it for what it is it's a real estate free for all during a time where the housing market continues getting more and more expensive in fact recent reports show that in NUMBER_TOKEN of those metro areas median prices rose by more than NUMBER_TOKEN percent from a year earlier and now prices are rising so rapidly that they are outweighing the benefit of low borrowing rates effectively meaning it doesn't matter how you spin it real estate is out of control for eye buyers the main pitch is convenience or as redfin calls it it's like having an easy button to sell your home making the process almost as easy as selling a stock or smashing the like button for the youtube algorithm but this whole process has to make you wonder how much of these companies actually making by buying your home and then flipping it back on the market for sale after making a few repairs well this is the part that i found surprising but i buyers are actively losing money at an average of NUMBER_TOKEN NUMBER_TOKEN for each home bought and sold it's almost like wall street bets just enter the real estate market so what's going on well first we got to take a look at how much they're paying for these homes in question which up front i gotta say it's a lot more than what you would expect for a virtual service like you would assume that these websites absolutely lowball you in the home's value and it's just a numbers game to try to get enough good deals but you know what it's maybe not zillow claims that homeowners have turned down their ibuyer offers only receive an average of NUMBER_TOKEN more on their home sale by going the traditional route however more recently it was found that i buyer offers were not only paying an average of four percent more than the home's market value but they were also expanding the areas in which they purchased leading of course to even greater losses by the time they put the home back on the market for sale and speaking of fees here's where things get really interesting a year ago ibuyers were paying about NUMBER_TOKEN percent in closing and other transaction costs whereas today that fee is reduced to NUMBER_TOKEN which is nearly identical to a home traditionally listed for sale with a realtor but you gotta wonder what's the point of doing all of this if the goal is to pay over market value to buy a home only to later sell it and lose money well zillow completely acknowledges that their eye buyer program is unprofitable and costs them tens of millions of dollars but they say to
START_INTERACTION_TOKEN or smashing the like button for the youtube algorithm but this END_INTERACTION_TOKEN