You may have heard of home buyers Opendoor, Redfin, and Zillow offers to name a few. They are what we call Ibuyers. They are large institutional investment companies that buy sellers homes at a discounted price and resell to the general public later. They are known for adding hefty fees upfront to sellers in exchange for getting a higher offer on their property. Since Covid- 19 has started, these major buyers have decided to stop buying. We’ll explain the 2 main reasons they have stopped buying and which cash buyers in Jacksonville are still buying.
Almost all Ibuyers have used this as their main reason for not buying or pulling out of existing contracts. We have to remember that these are national companies so their business model must be the same for every state they buy in. Some states they buy in are on full lockdown and real estate is not considered an essential business, so therefore, they can’t get houses on the market like they could before. Even houses that they have already bought will just be at a stand still since they can’t get agents inside to put on the market. These Ibuyers are afraid that home prices will drop and the resale value will not be what they thought it would be.
On each Ibuyers website, they have stated health concerns from Covid 19 as another reason for not buying. They have shut down operations for the time being and not allowing agents to put houses on the market. Again, this is because some states they have bought in are on full lockdown so there’s not much they can do at the moment. These companies also don’t want to put their staff at any unnecessary risk.
What does this mean for homeowners? Well it means that there are less home buyers in the market right now. When there are less home buyers, there are less cash offers to be given. So if Ibuyers aren’t buying, which cash buyers in Jacksonville are? The great news is Mac Home Development is still buying! This also goes to show that these large institutional buyers are not here to stay, they don’t care about local communities, and they are only in it for the money. We have a saying here at Mac Home Development that tough times don’t last but tough people do! We are considered an essential business so we are still fully operational and taking every precaution to protect us and homeowners.
We pride ourselves on staying in business and helping our local communities through these daunting times. We are all in this together and we will do everything possible to help our fellow neighbors! Please call us at 904-416-9398 if you need to sell or if you have questions about how the process works!