 Hey, what's up everybody? This just in Redfin and Open Door are partnering up on their ibuyer business. This is very interesting because just last week, Purple Bricks pulled out of the US and now Redfin and Open Door are partnering up on their ibuyer business. What is ibuyer? Well, it's just like Instant Offers for Zillow, they offer to buy direct from the sellers. They offer to buy your house directly without agent involved. It's cash. It's a quick closing. It's a real easy process. However, the catch is it's a lot lower price. Another study was done by MarketWatch that revealed that the ibuyers were buying the properties for 11% less than the sellers would have gotten on the open market going through a real estate agent. We're talking about the property owner's net here, 11% less on their net. If they went and sold it on the open market, added the commission on top and all the other fees, they would still make 11% more than if they went with an ibuyer. That fact right there is a great statistic to tell your clients when they're considering one of these options. Why do I think that Redfin and Open Door and Zillow are doing these ibuyers slash Instant Offers? Why do I think Open Door and Redfin partnered up? I want to answer the first question first, and that is, why are they doing ibuyers? Why are they making this Instant Offer option for homeowners? Most homeowners are not going to go that route because it's a much less offer, but why are they doing it? Even the CEO of Redfin said that they can't buy all their customer's properties. It would be way too much money to put out there. By the way, this article on Redfin and Open Door partnering up on this has a picture of the CEO of Redfin and it's hilarious. He has a bunch of $100 bills just throwing them in the air. It's crazy. So why do I think they do it? It's because they want the homeowner's attention. He said it many times that once the homeowner comes in, they look at the offer that they're making as an ibuyer or an Instant Offer, and the homeowner turns that offer down. They're going to turn it right around and use another service that Redfin offers, which is listing your property. Which is still a discounted rate from the general market. So they list it for a much less commission than you would a traditional real estate company. So what they're doing is they're using the offer as the ibuyer as bait to try to get the homeowner in, get their attention, see if they can buy it for really cheap, and then if not, they'll just turn it around and list it. Genius. And if they do turn it around and buy a lot of these properties for really cheap, they win. So I can say that I think it's really cool to see this happen and just to have people thinking outside the box to try to make something happen. I love that. Do I think it's a threat to real estate agents? No. Because people still want relationships. People still want as much money as they can get. There's no worry about one of these. It's just like I said in the Purple Bricks video last week. If somebody wants to use one of these discounted brokerages, flat fee companies, let them go and tell them, look, if it doesn't work out, then come back to me and I'll take care of you. And that's what's going to happen 98% of the time, they're going to come running back to you because that's how it's happened for me. And on the flip side, when that person goes away, you're going to fill that time up with more people that want to do business with you. The name of the game is we're going to win some, we're going to lose some, but we're always going to be moving towards who can we help, who wants to work with us. Because there are 100% of the time going to be people out there that want to do business with us. And on the flip side, there's going to be people who do not want to do business with us. Okay, so enjoy both sides of it because you can't have one without the other. Now why did Redfin and Open Door partner up? I don't know exactly, okay, I'm only assuming this, but I feel it's kind of a moment of desperation. I think they're trying to combine forces in terms of capital that they have on hand to buy some of these properties. Which is great because they can put their money together and see what happens, but the majority of consumers, the majority of your clients are going to want to deal with you. Okay, because they're going to want to get the most that they can possibly get for their property. All right, they're going to want to get that 11% that they're going to lose by selling it to an eye buyer. They're going to want to deal with you because you've created this relationship with them and they know that you're going to take care of them. They don't want to be thrown into the system that doesn't really show much of a motion towards one of the most incredible decisions that they'll probably ever make in their life. So I thought this was interesting, wanted to share it with you. Please comment below your thoughts. Hit that like button, hit the subscribe button if you haven't done that. Let me know what in the world I can do for you and we'll talk to you soon.