Online real estate database companies are looking for more opportunities. Other than being only a database and search engine, now Zillow and Redfin are starting to test a model that will provide home owners the possibility to sell their houses directly to them, via website.
Redfin, for example, began testing an experimental new service called Redfin Now, where they buy homes directly from home sellers and resell them to other home buyers. According to a SEC filing on June 2017 the company said that “customers who sell through Redfin Now will typically get less money for their home than they would listing their home with a real estate agent, but get that money faster with less risk and fuss”.
For calculating the price of the house, Redfin believe in the algorithms for calculating what a home is worth – with this process the company expects that they will limit the risk that the price they pay a customer for a home is below the price they’ll charge a new buyer. Computers and Artificial Intelligence are everywhere now, and this is just another example of their ability to change the world we’ll live in the near future.
It sounds like another message that big names in the real estate business are trying to get more homes for better prices, to flip and resell for better prices. It is a risky strategy, and many real estate agents that are partners for some business probably will be upset. Let’s see the next moves in this very interesting area. But…every single time some risky innovative concept prove to be right for the long term, then we look backwards and called the innovator a genius.