By now you’ve heard that Zillow’s “iBuying program goes from full speed to full stop,” in the words of CNN. They will stop buying homes through Zillow Offers for the rest of the year in order to work through the backlog of homes it has already bought. The “iBuyer” model used by Zillow and other real estate companies involves purchasing homes directly from sellers (at a low price), and then re-listing the properties (at a high price) after doing minor work. They then keep the value they created for themselves.
We do not share that model. Our business approach is strikingly different from Zillow Offers and other iBuyer models. As this Housing Wire article succinctly stated in the headline: “William Raveis Ain’t No Stinkin’ iBuyer”! We at William Raveis have built our reputation on core values like trust and integrity. Indeed, our business model is partnering with our clients for the long term, securing the best value while delivering superior personalized customer service. We now have an excellent opportunity to share with our clients that the Raveis Purchase program is more advantageous for them — and that it’s here to stay.
Here are some key differentiators:
Raveis Purchase clients pocket the value we create
With our Raveis Purchase program, we will purchase our clients home for an initial payment of up to 80 percent of its current value, enabling them to unlock their home equity so they can make a confident, non-contingent offer on their next home. Using Raveis Refresh, we will then make any necessary upgrades and renovations in order to maximize the home’s value and to ensure the home sells for the highest price and quickly. As a result, the homeowner keeps the upside of the final sale price, unlike other ibuyer models that buy low, renovate and then sell high — and keep the difference for themselves. We create additional value in the home and pass all of it to the homeowner.
We will Purchase most homes across a wide range of price, size, and geography
Almost all properties qualify for Raveis Purchase; the criteria of homes we will buy is expansive. We have provided purchase offers for multi-million-dollar homes in Naples, Fla. and quaint cottages on Cape Cod — and hundreds in between.
We’re 100% open for business and have no funding or operational constraints.
As an independent, family-owned business, we are not beholden to shareholders like our Wall Street competitors. The only people we are focused on are our sales associates and how they can help their clients.
IBuying is a fad that looks good in a hot market but will turn ugly once the high tide goes out. The economics just aren’t there in the long run; the increased cost of inputs is a convenient excuse to put the brakes on a poor business model. The iBuying fad will lose its breath as market absorption rates normalize. In the meantime, we have the opportunity to deepen our relationship with consumers and close the tech gap to deliver value to home-sellers and buyers through their agents.
With all of our services under one roof, including Raveis Purchase, Raveis Refresh, and William Raveis Mortgage, we offer so many advantages to the homeowner: speed, convenience and a streamlined process. With Raveis Purchase, the consumer benefits from the speed of getting out of their home and unlocking their equity to make a non-contingent offer on a new home. They also can benefit from the speed of getting into a new home financed by William Raveis Mortgage, one of the nation’s top direct lenders. William Raveis Insurance and our attorney network can streamline the whole process.
Want out of your home? As a client, you can literally say “go” and we’ll do it all. If you are interested in learning more, give me a call at 239.287.2576.