HOUSINGNEWS REPORT
DATA-FED DISRUPTION IN REAL ESTATE
FOUR HORSEMEN OF THE TRADITIONAL HOUSING INDUSTRY APOCALYPSE
IBUYERS : OFFERPAD DISRUPTING THE DISRUPTER
DISCOUNT BROKERAGES : PURPLEBRICKS DISRUPTING THE REALTOR ROLE
“As we are defining a new industry, there are a lot of competitors coming in. It really only validates that consumers want this.”
“We’re giving consumers a viable alternative versus the traditional real estate model. … Ten years ago the gatekeeper was the agent, but now consumers have access to that information so now the role of the agent is more of the trusted advisor.”
CORTNEY READ DIRECTOR OF COMMUNICATIONS AND OUTREACH, OFFERPAD
ERIC ECKARDT U.S. CEO, PURPLEBRICKS
SEE BELOW FOR MORE ON OFFERPAD’S DATA-FUELED DISRUPTION OF SELLER CONTROL.
SEE PAGE 5 FOR MORE ON PURPLEBRICKS’ DATA-FUELED DISRUPTION OF THE REALTOR COMMISSION STRUCTURE.
“Most of the market today is looking at a transaction-based model. … In order to get to that transaction before others do, you have to have predictive analytics.” PREDICTIVE LISTING MODELS : OFFRS.COM DISRUPTING FUTURE HOUSING INVENTORY
OFF-MLS MARKETPLACES : ROOFSTOCK DISRUPTING SINGLE FAMILY RENTALS
“The one thing real estate has going for it is the market size is quite large. That is appealing for investors who see a lot of companies. It is really the last major sector to not be discovered.”
GARY BEASLEY CO-FOUNDER AND CEO, ROOFSTOCK
RICH SWIER CO-FOUNDER, OFFRS.COM
SEE PAGE 7 FOR MORE ON HOW OFFRS.COM IS DISRUPTING THE IDENTIFICATION OF HOUSING INVENTORY.
SEE PAGE 8 FOR MORE ON ROOFSTOCK’S DATA-FUELED DISRUPTION OF THE INVESTMENT PROPERTY MARKET.
OFFERPAD:
“As we are defining a new industry, there are a lot of competitors coming in,” she said, noting that each of the companies under the iBuyer umbrella is offering a different flavor of products and services to the real estate marketplace. “It really only validates that consumers want this.” The success of Offerpad has attracted venture capital, with a total of $410 million raised so far, according to Crunchbase. Its biggest round of funding was a $230 million deal in
2017, landing Offerpad as No. 3 among notable funding deals ranked by RE:Tech for the year. While Zillow has purchased one home so far, Offerpad and fellow iBuyer pioneer Opendoor — which launched in 2013 — have purchased nearly 10,000 homes combined over the past five years, according to an ATTOM Data Solutions analysis of public record data.
Disrupting the Disrupter While the iBuyer model may be new for Zillow this year, it’s a disruptive business model that has already proven to have some staying power thanks to pioneers like Offerpad, which started purchasing homes directly from homeowners in the Phoenix area as early as June 2015, according to Cortney Read, director of communications and outreach for the company.
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JUNE 2018 | ATTOM DATA SOLUTIONS
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