New quarterly study looks at iBuyer, bridge solution trends
BOULDER, Colo. – December 2, 2020 – RealEstateRama – Real estate is red hot, but how have iBuyers fared in the last quarter? Has their average time to close a transaction gone up or down? Are iBuyers seeing more or fewer offers being accepted by homeowners? And how are the new buy-before-you-sell bridge providers doing?
All of these questions — and more — are answered in the first-ever zavvie Seller Preferences Report created and released today by zavvie, the first end-to-end real estate brokerage platform encompassing all selling solutions.
“As more homeowners think about selling their homes within the next year, many won’t — because they are nervous about how to do it because of COVID, scarce inventory, and general uncertainty,” said Lane Hornung, zavvie co-founder and CEO. “Our new report provides all the details.”
The zavvie Seller Preferences Report is the first quarterly review of its kind for all the selling solutions available to homeowners throughout the U.S. The new report looks specifically at the relaunch of national iBuyers in all their pre-COVID markets and the increasing influence of bridge solutions in the marketplace.
The quarterly report features a new nationwide map that shows where leading iBuyer and bridge solution providers operate, market activity and volume, time to close and concessions stats, and offer acceptance trends.
The zavvie Seller Preferences Report highlights:
- IBuyer purchase volumes for Q3 were 82 percent lower compared to last year.
- While iBuyer buy boxes haven’t formally changed, they are expanding to include condos, higher-priced homes (in some cases, seven figures), older homes, and more eclectic housing.
- IBuyers’ offer strength is down 3.1 percent, as collectively, they have been purchasing homes at 95.5 percent of market value across all markets, compared to their 2019 comparable average of 98.6 percent.
- Offer acceptance rate for iBuyers is up slightly (0.5 percent) to 4.7 percent, up from 4.2 percent in 2019.
- Bridge solutions are on fire, as consumer acceptance of bridge buy-before-you-sell offers are roughly 4X that of instant offers from iBuyers.
- Time to close — the number of days that start when a seller first contacted an iBuyer to request an offer until the closing occurred — is up 4.8 days in Q3 to 49.4 days versus 44.7 days in 2019.
The debut of the new zavvie report is important, Hornung explains, because sellers have more choices today than ever before. Still, homeowners often lack the information necessary to determine what option will be the best one for them right now.
“This is another tool that will help empower the modern agent,” added Hornung, noting the recent launch of zavvie Pro. “The modern agent brings all of the selling options — iBuyer, bridge solutions, and an open market listing — to the table.
“The modern agent does not fear what disruptors are doing. They co-op it because the modern agent is the trusted advisor who a consumer wants to help them fully understand all their choices, including the advantages and disadvantages of each.”
The complete zavvie Seller Preferences Report is available for free at zavvie.com/seller-preferences.
zavvie is a technology company that empowers the modern agent by making it easy to provide all selling options: iBuyer, Bridge, and Open Market through our proprietary Offer Optimizer™ Suite. zavvie gives top brokerages and agents all they need to thrive in today’s evolving real estate landscape: easy to use tools, technology, training, marketing, and strategy. Discover more at zavvie.com.
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