enough away most houses look the same. At cruising altitude over Dallas, Los Angeles and even much of New York, most dwellings are nondescript: beige- or grey-roofed, laid out in neat patterns. In sunnier climes the monotony is punctuated by the bright turquoise oblongs of swimming pools. When it comes to valuing a home, though, the details matter. The site, square footage, number of rooms, the finishing and a thousand other factors determine whether a home is worth $200,000 or $2,000,000.
This antiquated model is on the verge of being disrupted. In America rules on commissions and data-sharing have so far kept fees higher than in other rich countries. But now regulators and courts are considering again whether practices in the real-estate industry are anticompetitive. But these difficulties cannot justify the fees Americans pay. Fees across much of the developed world have fallen, thanks to the entry of online platforms that allow would-be buyers to search for properties themselves. American brokers argue that they provide a more holistic service than estate agents elsewhere. But a bigger factor may be the network effects associated with the multiple-listing service, the industry association that regulates it.in return for access to other listings.
These firms use vast quantities of data and whizzy machine-learning algorithms to appraise homes and make an initial offer, often within hours of a seller asking for one. A couple in Covina, in greater Los Angeles, requested an offer from Zillow on Christmas Eve 2019, had their home inspected on December 26th and accepted the bid the next day. They chose to set a closing date in March 2020, but could have opted for December 28th.
The success of i-buyers also depends on whether their algorithms get the price right. The most important factor is location, says Bridget Frey of Redfin. It interacts with other factors, too. “You need location to tell the algorithm what weight to put on the thousands of other variables you might look at.” Swimming pools add value in San Diego but tend to decrease it in New Jersey. In Atlanta proximity to a golf course is highly prized.
Promises promises promises!
Can anyone share the entire article please?
How about we disrupt the mortgage market as well?
let me guess without clicking, it's going to fuck over the poor with extreme prejudice
iBuying cost = 1.4% under market value + 6-7% (6.5%) = 7.9% cost to owner. RE Agent is 5-6% (5.5%) cost to owner. Owners are still better off with agent by 2.4%.
About time.
shaken-up, or a shake-down?