HOUSINGNEWS REPORT
DATA-FED DISRUPTION IN REAL ESTATE
Read said Offerpad’s business model is disrupting the marketplace by giving control back to sellers. “The number one thing is you’re putting the control back in the seller’s hand,” she said. “Before Offerpad there wasn’t much control they had or certainty over the process. “A lot of people have actually lost out on their dream house … because they had a contingency of their house selling. There is not really peace of mind until the deal closes and the funds are transferred to their account,” Read explained. “With Offerpad you come to us, give us your property address, upload some pictures and within 24 hours we’ll provide you an offer. … We actually have customers that sell to us and buy Offerpad homes and they are able to do those transactions within a month.”
business model and customer-facing applications is also helping to fuel investment in the company. “In addition to using data to provide a tremendous home buying and selling experience, we invest continuously in developing our proprietary technology and enhancing the millions of real estate and economic data points we collect,” he said. “These investments in data and technology help us identify potential market expansion while providing our investors and partners with the insight and the confidence to continue to fuel our operations.”
million investment in Q1 2018, the second largest in the real estate tech space during the quarter, according to RE:Tech. “We’re giving consumers a viable alternative versus the traditional real estate model,” said Purplebricks’ U.S. CEO Eric Eckardt, noting that the company appeals to investors because it is cashflow positive on an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) basis, “which is almost unheard of for a tech company.” Purplebricks was founded in 2014 in the U.K., and has expanded to six states since its U.S. launch in September 2017: California, New York, Connecticut, New Jersey, Arizona and Nevada. “We’re moving quickly,” said Eckardt, noting the first quarter infusion of capital helped to fuel this rapid
PURPLEBRICKS:
Disrupting the Realtor Role Real estate tech company Purplebricks, which allows homeowners to list their homes for a flat fee rather than using the traditional commission- based fee structure, secured a $177
Mayes said the same data and analytics the company has developed to fuel its
ESTIMATED DOLLAR VOLUME OF iBUYER HOME PURCHASES BY YEAR
OFFERPAD & OPENDOOR COMBINED HOME PURCHASES
$924,919,962
$739,780,229
$325,906,550
$144,728,887
$1,395,784
2014
2015
2016
2017
JAN-APR 2018
5
JUNE 2018 | ATTOM DATA SOLUTIONS
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