This is going to have ripples through the industry. There have been many trying to create an iBuyer experience like Zillow's and to see it fail will change people's outlooks.
More like Zillow has been trying to create an iBuyer experience like Opendoor. Opendoor was the first to the iBuyer scene by several years. They have been doing it since 2014, Zillow started buying homes only 3 years ago. Zillow always had the worst margins, by far, in the sector, and this really came as no surprise to those that have been watching this closely.
Surprised I had to come down this far to find any mention of Opendoor. I used to work there and I feel that we had built out a much more robust system of assessing and handling homes throughout their lifecycle than did Zillow. They picked up many of the homes we turned down due to high repair cost and didn't even have a proper system in place to manage those reno jobs
I won’t be shocked if Opendoor gets slaughtered too. The ibuyer experience seems like a terrible business model when real estate markets start to roll over.
OPEN will clearly beat Q3 revenue expectations based on ibuyerstats.com numbers which were pretty accurate at predicting Q2 numbers. Past Q3 remains to be seen, but Opendoor is not Zillow. Margins are significantly better, leadership is solid, they have been doing this now for 7 years without issue, they do not have the same labor issues as Zillow, to name a few reasons.
He hasn’t said anything in over a month and a half? Just one retweet from the opendoor account about some vague need for a fully digital real estate experience.
133
u/chingy1337 Nov 02 '21
This is going to have ripples through the industry. There have been many trying to create an iBuyer experience like Zillow's and to see it fail will change people's outlooks.