We were talking with some friends last night about how much financial support is going towards kids, and how it will affect real estate in the future.
On one hand, it’s the Bank of Mom and Dad, and helping to keep the market afloat when funding home purchases at these lofty prices for those kids with regular jobs.
However, for those kids who never get to the point of financial stabilization, the selling of the parents home will become the lottery ticket to solve their money issues.
I suggested that this is where the ibuyers could do the most harm by taking advantage of people who want and need a quick sale and who aren’t that familiar with the values.
When we were in Las Vegas for that one-day vacation, I saw more than one ibuyer ad on TV, and they were very enticing. The kids who have been strapped for years and then inherit their parents’ house might jump at the chance to get their hands on quick money – and likely leave some on the table.
Will anyone step up to protect the unsuspecting? A new challenge/opportunity for realtors!
Wow! That ad certainly made using Opendoor to sell your house very compelling. And according to the ad, they could have gotten the same amount of money as using a regular, old realtor! Which is a lie of course, but who’s really going to do the research? And how much money will they really be leaving on the table? That’s the part that regular realtors need to hammer home. How much money the sellers are giving away to Opendoor.
And is it really that much of a hassle to sell a home, at maximum price, using an old fashioned realtor?
Maybe a competing ad would show house to house comparisons of those that sold using Opendoor vs how much money they could have made selling the house with a traditional realtor?
That’s a “squishy” question. Rich families can and do help their kids with no consequences. They would answer “not at all” but still would have been helping. Of course the real thing to ask is which people actually answer questions like this? Respondents are likely to have strongly “self-selected.”
The rich are different. They have more money.
I add; they also recognize opportunity better. I wish I were rich. That’s probably a negative indicator as wishes don’t get you there.