Zillow failed at home-flipping, but the iBuying business now has less competition - here are 3 good bets in the space to take market share




  • In Business
  • 2021-11-25 17:47:00Z
  • By MoneyWise
Zillow failed at home-flipping, but the iBuying business now has less competition — here are 3 good bets in the space to take market share
Zillow failed at home-flipping, but the iBuying business now has less competition — here are 3 good bets in the space to take market share  

If someone told you last year that one of the biggest losers in the pandemic housing boom would be real estate hotshot Zillow, you'd probably wouldn't have believed it.

And yet, here we are.

Earlier this month, the company pulled the plug on its disastrous home-flipping business, Zillow Offers, which lost the company $422 million in Q3 alone. Shutting the division down eliminates 25% of its workforce.

The company's stock declined by about 44% in the last month.

But just because a big player in the space has blown it doesn't mean that "instant buying" - or iBuying - is dead. Several real estate players seem to have figured it out, and they're competing for Zillow's dented crown.

Here are three stocks that could take Zillow's place in your portfolio. Getting a piece of a company like these might cost you no more than your spare change.

Opendoor (OPEN)

Tada Images / Shutterstock
Tada Images / Shutterstock  

Opendoor was trouncing Zillow even before the latter staggered out of the iBuying market.

In the second quarter, Zillow sold 2,086 homes at a profit margin of 5.8%. Opendoor sold 3,481 homes at a margin of 10.8%. It followed that up by selling 5,988 homes in Q3, generating gross profits of $202 million along the way.

Can Opendoor keep up that momentum? That's the question. The company bought up almost three times as many homes as it sold in Q3, all of which will need to be renovated while supply chain snags and labor shortages are driving up the cost of repairs.

But those concerns face all iBuyers. If you believe in the industry, you could do worse than investing in the largest one - especially now that Zillow's failure dragged all iBuyers' share prices down. Opendoor's stock has shed 31% in the last month.

Offerpad (OPAD)

Jaruwan Jaiyangyuen / Shutterstock
Jaruwan Jaiyangyuen / Shutterstock  

Offerpad is a smaller operation than Opendoor, but the companies have had a similarly great year.

In the third quarter, Offerpad reported revenue of $540 million, up from $186 million a year ago. The company has projected 2021 revenue to be in the neighborhood of $1.9 billion, right in line with analysts' expectations of $1.84 billion.

While it could be argued that Opendoor's buying frenzy in Q3 might be a little ambitious, Offerpad is scaling up at a more modest pace, which may help insulate it from any major shocks to the housing market. The company sold 1,673 homes in the third quarter and bought 2,753.

If you want to roll the dice with an iBuyer that is very much in growth mode, shares in Offerpad are quite approachable. And their price has remained relatively stable - down about 4% - since Zillow showed itself out.

Redfin (RDFN)

Sundry Photography / Shutterstock
Sundry Photography / Shutterstock  

Redfin is an intriguing option because it's not solely an iBuyer. It's a full-fledged real estate brokerage as well as a mortgage business, which adds some always appreciated diversification into the mix.

Redfin has recently taken a conservative approach to iBuying, lowering the offers it made on homes in September as a means of avoiding the same kind of mistake as Zillow.

That careful approach has paid off. Redfin had a killer Q3, when earnings were up 128% year-over-year.

The company's stock has been in a bit of a freefall since hitting almost $97 a share in February. It lost 21% in the last month and is now cheaper than it's been since July of last year.

If you're buying the dip, Redfin may be a long-term play. With interest rates set to rise, a cold front could be heading for the country's red-hot real estate market next year.

A real way to get involved

Petinov Sergey Mihilovich / Shutterstock
Petinov Sergey Mihilovich / Shutterstock  

Of course, if you'd rather stay out of the stock market, there's a more direct way to own commercial real estate.

For instance, some popular investing services let you lock in a steady rental income stream by investing in premium commercial real estate - from research and development campuses in San Jose to industrial e-commerce warehouses in Baltimore.

You'll gain exposure to high-end commercial properties accessible to big-time real estate moguls.

And the best part? You'll receive regular passive income in the form of dividend distributions without any headaches or hassles.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

COMMENTS

More Related News

Tired of standing in line to pay property taxes? Harrison County offers new way to pay.
Tired of standing in line to pay property taxes? Harrison County offers new way to pay.

You can also use the new option to renew your car tag. Here are the details.

Even in tech hub Shenzhen, China
Even in tech hub Shenzhen, China's property market succumbs to chills

Life used to be good for Jerry Tang, who left his rural hometown in 2014 to become a real estate agent in Shenzhen - China's tech megacity and one of the...

Advice From Mark Cuban, Warren Buffett and Other Experts That Can Help You Survive a Crisis
Advice From Mark Cuban, Warren Buffett and Other Experts That Can Help You Survive a Crisis

Amid a calamitous year (and then some) marked with historic civil unrest, a full-blown pandemic and a whiplashed economy, we could all use some words of...

With inflation and COVID in the picture, what to watch for in the latest jobs report
With inflation and COVID in the picture, what to watch for in the latest jobs report

The American job market is a laggard, but it is catching up faster than it may first appear.

11 Benefits of Downsizing Your Home
11 Benefits of Downsizing Your Home

The housing market is still sizzling hot, with single family homes in steep demand. Those who are looking to cash in on the momentum, might want to consider ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • idnpoker.com
    (2021-11-25 19:40:18Z)

    This is a topic that's near to my heart... Best wishes!
    Exactly where are your contact details though?

    REPLY
  • we.riseup.net
    (2021-11-26 01:56:31Z)

    We are a group of volunteers and starting a new scheme in our community.
    Your web site offered us with valuable info to work on. You've done an impressive job and our whole community will be
    thankful to you.

    REPLY
  • canadian pharmaceuticals online
    (2021-11-26 10:43:24Z)

    It is the best time to make some plans for the future and
    it's time to be happy. I have learn this put up and if I
    may I desire to suggest you some fascinating issues or advice.
    Perhaps you could write next articles referring to this
    article. I wish to read even more things approximately it!

    REPLY
  • discuss
    (2021-11-26 14:19:59Z)

    Hi, i believe that i noticed you visited my weblog so i
    got here to go back the want?.I am attempting to to find
    things to improve my website!I guess its ok to use some of your ideas!!

    REPLY
  • joker123.net
    (2021-11-26 17:57:56Z)

    Hi there i am kavin, its my first time to commenting anyplace, when i read this piece of writing
    i thought i could also make comment due to this good
    post.

    REPLY
  • Erex Male Enhancement reviews
    (2021-11-26 18:45:29Z)

    Definitely consider that that you said. Your favourite justification appeared to be on the internet the simplest factor to understand of.

    I say to you, I definitely get annoyed at the same time as folks think about worries that they plainly do not understand about.
    You managed to hit the nail upon the top and outlined out
    the entire thing without having side effect , other folks
    could take a signal. Will probably be again to get
    more. Thanks!

    REPLY
  • short link
    (2021-11-26 23:55:31Z)

    I have been surfing online more than 4 hours today, yet I
    never found any interesting article like yours. It is pretty worth enough for me.
    In my opinion, if all webmasters and bloggers made good content as you did, the web will
    be a lot more useful than ever before.

    REPLY
  • short link
    (2021-11-27 00:02:38Z)

    hi!,I love your writing very much! proportion we keep up a correspondence extra about
    your post on AOL? I require a specialist in this
    area to solve my problem. Maybe that is you!
    Looking ahead to see you.

    REPLY
  • short links
    (2021-11-27 00:09:31Z)

    For most recent information you have to visit world-wide-web and on internet I found this site as a best web page
    for most up-to-date updates.

    REPLY
  • short link
    (2021-11-27 00:26:20Z)

    Admiring the time and effort you put into your website and detailed information you
    offer. It's good to come across a blog every once
    in a while that isn't the same outdated rehashed information. Great read!

    I've saved your site and I'm adding your RSS feeds to my Google account.

    REPLY
  • Air Freight services
    (2021-11-27 00:39:16Z)

    I have beеn exploring foг a ittle for any high-quality articles or
    weblog posts іn thіѕ kind of areda . Exploring in Yahoo Ӏ eventually stgumbled ᥙpon tһis website.
    Studying thjs info Ѕo i'm satisfied to express tһɑt I havve аn increrdibly excellent ncanny feeling І came
    սpon jսst wһat I needed. Ӏ such a loot no doubt
    will make crtain tо do not forget thiѕ website and give it a look on a continuing basis.

    REPLY
  • liverpoolsu.com
    (2021-11-27 05:34:35Z)

    I am not rattling great with English but I get hold this
    very leisurely to read.

    REPLY
  • blue permanent hair dye
    (2021-11-27 11:39:21Z)

    By way of introduction, I am Mark Schaefer, and I
    represent Nutritional Products International.



    We serve both international and domestic manufacturers who are seeking to gain more distribution within the United States.
    Your brand recently caught my attention, so I am contacting you today to discuss the possibility of expanding your national distribution reach.



    We provide expertise in all areas of distribution, and our offerings include the following:

    • Turnkey/One-stop solution
    • Active accounts with major U.S. distributors and retailers
    • Our executive team held executive positions with Walmart and Amazon
    • Our proven sales force has public relations, branding,
    and marketing all under one roof
    • We focus on both new and existing product lines
    • Warehousing and logistics

    Our company has a proven history of initiating accounts and placing orders with
    major distribution outlets. Our history allows us to have
    intimate and unique relationships with key buyers across the United
    States, thus giving your brand a fast track to market in a professional manner.


    Please contact me directly so that we can discuss your brand further.


    Kind Regards,
    Mark Schaefer
    marks@nutricompany.com
    VP of Business Development
    Nutritional Products International
    101 Plaza Real S, Ste #224
    Boca Raton, FL 33432
    Office: 561-544-0719
    http://cbdtopicals77665.develop-blog.com

    REPLY
  • idnpoker 88
    (2021-11-27 20:35:00Z)

    Hi, Neat post. There is an issue along with your web
    site in internet explorer, could test this? IE nonetheless is
    the market leader and a huge element of folks will miss your
    fantastic writing because of this problem.

    REPLY
  • idnpoker 88
    (2021-11-27 20:46:40Z)

    Hello! I'm at work browsing your blog from my new apple iphone!
    Just wanted to say I love reading your blog and look forward to all your posts!
    Keep up the excellent work!

    REPLY
  • slot joker123
    (2021-11-28 06:28:02Z)

    I've learn some good stuff here. Definitely value bookmarking for revisiting.
    I surprise how a lot effort you put to create any such magnificent
    informative web site.

    REPLY
  • pomysły na prezenty świąteczne
    (2021-11-28 08:23:54Z)

    I need to to thank you for this fantastic read!!
    I definitely loved every bit of it. I've got you book marked
    to look at new things you post…

    REPLY
  • Rosalina
    (2021-11-28 11:20:59Z)

    http://www.jawalgulf.com/ask/?qa=240345/comprar-gen%C3%A9rico-zenavil-tadalafil-envio-internet-brasil
    http://q2a.sydt.com.tw/index.php?qa=594027&qa_1=citalopram-40-comprar-una-farmacia-linea-recomendada-chile
    http://www.jawalgulf.com/ask/?qa=210065/donde-ordenar-madicure-forma-segura-costa-comprar-madicure
    http://q2a.sydt.com.tw/index.php?qa=587851&qa_1=norethindrone-acetate-5mg-cher-achat-aygestin-ligne-suisse
    https://answers.gomarry.com/130302/bimat-bimatoprost-3mg-comprar-sem-prescri%C3%A7%C3%A3o-pela-net-brasil
    http://bioimagingcore.be/q2a/383290/como-para-comprar-gen%C3%A9rico-fentoinal-envio-urgente-brasil
    http://q2a.sydt.com.tw/index.php?qa=543490&qa_1=sildenafil-duloxetin-wie-kann-ich-expressversand-kaufen
    https://answers.gomarry.com/102538/donde-para-ordenar-inderal-la-propranolol-mas-barato-us-la-venta-de-inderal-la-es-sin-receta
    http://bioimagingcore.be/q2a/347375/irbesartan-apotheke-schweiz-avapro-kaufen-online-apotheke
    https://answers.gomarry.com/146685/farmacia-online-donde-comprar-generico-claritin-loratadine-ahora-bolivia
    http://q2a.sydt.com.tw/index.php?qa=530565&qa_1=vasosure-sildenafil-citrate-ordonnance-sildenafil-citrate
    http://bioimagingcore.be/q2a/345243/altace-einem-einkaufen-ramipril-kaufen-ohne-zollprobleme
    https://answers.gomarry.com/126809/ticlid-puedo-comprar-sin-receta-de-calidad-chile-comprar-ticlopidine-generico-barato

    REPLY
  • input
    (2021-11-28 11:51:42Z)

    Greetings from Colorado! I'm bored at work so I decided to check out your blog on my iphone
    during lunch break. I enjoy the knowledge you provide here and can't
    wait to take a look when I get home. I'm surprised at how quick your blog loaded on my phone ..

    I'm not even using WIFI, just 3G .. Anyways, amazing site!

    REPLY
  • idnpoker
    (2021-11-28 14:35:06Z)

    I think this is among the most important info for
    me. And i'm glad reading your article. But wanna remark on few general
    things, The website style is great, the articles is really great :
    D. Good job, cheers

    REPLY
  • 24 Hour ACV Supplement
    (2021-11-28 17:00:33Z)

    I love the efforts you have put in this, appreciate it for all the great content.

    REPLY
  • 24 Hour ACV Review
    (2021-11-28 17:00:52Z)

    I love the efforts you have put in this, thanks for
    all the great blog posts.

    REPLY
  • ФRРШ
    (2021-11-28 23:59:47Z)

    ФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШФRРШ

    REPLY
  • Buy Apple Developer VCC
    (2021-11-29 00:59:12Z)

    I was curious if you ever thought of changing the page layout of your blog?
    Its very well written; I love what youve got to say.
    But maybe you could a little more in the way of content
    so people could connect with it better. Youve got an awful lot of text for only having
    1 or 2 pictures. Maybe you could space it out better?

    REPLY
  • Mountainside On Site Massage Therapy
    (2021-11-29 00:59:15Z)

    What I truly think most about is wellness issues. On my own, I sign up for
    publications dealing with this subject, and I continue up to date about the latest wellness lab analyses.
    In what way is this relevant? I feel there is no more crucial concentration for my time.
    Similarly, this blog website entry seems as though it's deserving my time to read.
    I sift through 1000s or even more of sites every week. Honestly, my backbone constantly is uncomfortable and I desire a new hobby.
    lol Anyway, I think if everyone published about their place in the universe, and did so cogently, we'd
    have a more interesting Net. https://awomansnewjerseyjourney.wordpress.com/

    REPLY
  • couples massage new jersey spa
    (2021-11-29 01:01:25Z)

    Your blog has certainly supplied me personally with simply the info that I actually needed.
    We have recently been doing research upon this issue for a time, and this has
    taken a long while to find a blog page that delivers all of the facts which i
    want. We glimpse forward to examining even more weblogs written by you down the road, and will
    start looking here initially when I just have got a fact-finding project. http://Asio.Basnet.Byyf0Dby0L56Lls-9Rw.3Pco.Ourwebpicvip.ComN.3@Www.Telecom.Uu.ru/?a%5B%5D=%3Ca+href%3Dhttp%3A%2F%2FEc.L.I.Pses.R.Iw%40cenovis.the-m.co.kr%3Fa%255B%255D%3D%253Ca%2Bhref%253Dhttp%253A%252F%252Fhealth-topic.com%252F2019%252F09%252F22%252Fcouples-massages-we-eat-well-together-do-yoga-together-meditate-together-why-not-rejuvenate-together%252F%253Ecouples%2Bmassage%2Bnew%2Bjersey%253C%252Fa%253E%3Ein-home+massages%3C%2Fa%3E

    REPLY
  • new jersey couples massage
    (2021-11-29 01:18:02Z)

    First of all, thank you for the info, and your point of view.

    I could appreciate this blogging site and especially this text.
    At this stage, I feel I fritter away far too enough time
    on the net, studying rubbish, actually. This was a refreshing change
    from what I've known. Still, I think that reading other people's thoughts
    is a valuable investiture of at minimum some of
    my weekly measure of time in my timetable.
    It's much like looking through the chaff to obtain the wheat.
    As well as, whatever analogy is effective for you.
    Still, sitting in front of the personal pc is probably as bad for you as cigarette smoking and deep-fried
    potato chips. http://oracle.et.put.poznan.pl/~uamlib/index.php?a%5B%5D=%3Ca+href%3Dhttp%3A%2F%2F211.45.131.206%2F%3Fa%255B%255D%3D%253Ca%2Bhref%253Dhttp%253A%252F%252Fhealth-topic.com%252Fcouples-massages-we-eat-well-together-do-yoga-together-meditate-together-why-not-rejuvenate-together%252F%253Ecouples%2Bmassage%2Bcentral%2Bnj%253C%252Fa%253E%3Ecouples+massage+NJ%3C%2Fa%3E

    REPLY
  • Yes! Finally something about .

    REPLY
  • maps.google.com.ph
    (2021-11-29 04:57:24Z)

    Hi, constantly i used to check website posts here early in the break of day, as i love to learn more and more.

    REPLY
  • sbobet88
    (2021-11-29 07:23:08Z)

    It's truly very complicated in this active life to listen news on TV,
    thus I just use the web for that purpose, and take the latest information.

    REPLY
  • sv388 daftar
    (2021-11-29 17:26:44Z)

    I delight in, result in I discovered just what I was looking for.
    You've ended my four day long hunt! God Bless you
    man. Have a nice day. Bye

    REPLY
  • mpo slot
    (2021-11-29 18:58:56Z)

    Can I simply say what a relief to find someone that genuinely knows what they're talking about on the web.

    You certainly understand how to bring a problem to light and make
    it important. A lot more people really need to look at this and understand this side of the story.
    I was surprised you aren't more popular because
    you most certainly have the gift.

    REPLY
  • Login Idn Poker Online
    (2021-11-30 03:42:47Z)

    Hello I am so delighted I found your website, I really
    found you by mistake, while I was researching on Askjeeve for something else,
    Nonetheless I am here now and would just like to say many thanks for a fantastic post and a all round exciting blog (I also
    love the theme/design), I don't have time to browse it all at the minute but I have saved it and also added your RSS
    feeds, so when I have time I will be back to read a great deal more, Please do keep
    up the superb job.

    REPLY
  • joker 123
    (2021-11-30 05:43:03Z)

    I blog quite often and I truly appreciate your information. Your article has truly peaked my interest.
    I will take a note of your blog and keep checking for new details about once per week.
    I subscribed to your RSS feed as well.

    REPLY
  • joker388
    (2021-11-30 07:04:27Z)

    Hi there! I know this is kinda off topic but I was
    wondering if you knew where I could get a captcha plugin for my comment form?

    I'm using the same blog platform as yours and I'm having trouble
    finding one? Thanks a lot!

    REPLY
  • cara daftar sv388
    (2021-11-30 07:23:31Z)

    Thanks for your marvelous posting! I truly enjoyed
    reading it, you might be a great author.I will make sure to bookmark your blog and will eventually come back later on. I want
    to encourage you continue your great writing, have a nice weekend!

    REPLY
  • games tips
    (2021-11-30 10:27:45Z)

    First off I want to say fantastic blog! I had a quick question in which I'd like to ask
    if you don't mind. I was interested to find out how you center yourself and clear your head before
    writing. I've had difficulty clearing my thoughts in getting my
    ideas out there. I truly do enjoy writing but it just seems like the first
    10 to 15 minutes are usually wasted just trying to figure out how to begin. Any recommendations or tips?
    Cheers!

    REPLY

Top News: Business