S2E6: Mike DelPrete - Real Estate Technology Trends and Updates
Buying and selling homes has never been so easy. But that doesn’t mean real estate agents are a thing of the past!
Join us this week as we speak with Mike DelPrete, an internationally recognized expert and thought-leader in real estate tech. Mike has traveled the world forging relationships with leading property portals and real estate tech startups, gathering first-hand knowledge and insights on tech trends and themes.
This episode, he shares some of the most exciting innovations in real estate – including iBuying – as well as the unintended ways these new models are impacting property markets.
EPISODE QUOTES:
On the impact of innovative real estate strategies…
[00:04:39] “If you wanna sell your home, you consider an iBuyer. If you wanna buy a home, you consider a power buyer. And these are companies that are trying to empower home buyers with more superpowers to be able to get the home they want. And they do so through two methods. One is cash offers, and the second is buy before you sell.”
[00:01:56] “Open Door, the largest iBuyer, has around 1.3% market share, which sounds, you know, that's a small number. But the U.S. residential real estate market is huge. So 1% market share is pretty significant. That's tens of thousands of houses every year. So it's worth paying attention to.”
On the unintended consequences of these new models…
[00:16:36] “iBuyers are selling a certain percentage of their homes directly to institutional investors… They're sucking up houses from the market. They're buying them from people who want to sell. And then they're putting some of those back on the market, but they're also selling some of them directly to institutional investors, which are Wall Street companies who are renting those out. So that's a decision that's been taken away from homeowners and communities.”
[00:18:09] “They can decide who they sell it to. They can keep it off the market, make it exclusive. They could just send an email to everybody on their mailing list and say, ‘Hey, we’ve noticed you've toured an open door home in the past. Here's a house for you.’”
On the value of real estate agents (still)…
[00:21:46] “Real estate is probably the largest transaction that somebody will undertake in their lifetime. So you have this idea of loss aversion, right? Which is that as human beings, we are wired to be conservative.”
[00:22:43] “What's the potential downside of making a mistake buying or selling a home? It's tens of thousands of dollars monetarily, but not just that… The potential downside of choosing to purchase the wrong home or selling your existing home, you know, the wrong way is huge. So when the downside is really big, that's when people want expert advisors. They want insurance for someone to hold their hand through the process.”
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