Los Angeles has joined the quick-sale, all-cash world of home iBuying, a program previously limited to the Inland Empire and other parts of Southern California.
Seattle-based discount brokerage Redfin announced Wednesday, Jan. 9, it launched its RedfinNow direct homebuying program in L.A. late last year.
Opendoor, the San Francisco company that kicked off the current wave of online cash homebuying, plans to move into the city early in 2019.
Both companies are among more than a half-dozen deep-pocketed businesses buying up houses directly from homeowners through an online business plan that uses automated valuation algorithms that make quick purchase offers possible.
Redfin, which charges a 1 percent commission for listing homes in L.A. and 3 percent for full-service “concierge” listings, has been buying homes elsewhere in Southern California for the past 1 ½ years. Public records show RedfinNow already has purchased about 240 Southern California homes: 142 in Riverside County, 84 in San Diego County, 11 in San Bernardino County and four in Orange County.
Zillow Offer and Opendoor are now entering the Inland Empire market as well. Other U.S. iBuyers include brokerage owner Realogy, Keller Williams Realty, OfferPad and Knock.
The appeal of iBuying is a quick, all-cash transaction that avoids the hassle, uncertainty and expense of getting a home ready for the open market and keeping it show-worthy until a deal comes through.
The iBuying trend started in Phoenix in 2014 and has spread to mostly mid-priced markets like Dallas, Houston, Denver and Minneapolis – markets with plenty of tract housing with lots of similar-sized homes to make pricing easy.
The homes then are fixed up and readied quickly for resale, using online resources and technology to market and show homes to potential buyers.
RedfinNow charges a 7 percent service fee for direct-home purchases, similar to fees charged by other iBuyers.
“RedfinNow appeals to a range of homeowners who are looking for a faster and easier way to sell their home,” said Orlando Jimenez-Ford, Los Angeles market manager for RedfinNow. “If you need the cash from your current home to buy your next home, are relocating and need to sell quickly, or want to avoid the cost and stress of preparing your home for the market and keeping it pristine for showings, RedfinNow is an ideal option.”
Source: “Los Angeles” – Google News