My presentation from Inman Connect, February 2019, covering the rise of iBuyers, the evolution of portals, and who wins.

1. iBuying Goes Mainstream:
How Big Can it Get?
Prepared by Mike DelPrete, February 2019

2. The railroads are in
trouble because they
assumed themselves to
be in the railroad business
rather than in the
transportation business.
— Theodore Levitt, 1960
“
”

3. Closer to the transaction
Far from the transaction
More of the
transaction
Less of the
transaction

4. Closer to the transaction
Far from the transaction
More of the
transaction
Less of the
transaction

5. Closer to the transaction
Far from the transaction
More of the
transaction
Less of the
transaction

6. Closer to the transaction
Far from the transaction
More of the
transaction
Less of the
transaction

7. Closer to the transaction
Far from the transaction
More of the
transaction
Less of the
transaction
Advertising
Finance
Agent
Commissions
Moving
Utilities
Title
Insurance

8. Closer to the transaction
Far from the transaction
More of the
transaction
Less of the
transaction
Zillow Offers,
Mortgage
Opcity

10. Closer to the transaction
Far from the transaction
More of the
transaction
Less of the
transaction

11. Closer to the transaction
Far from the transaction
More of the
transaction
Less of the
transaction
Search Engine

12. Closer to the transaction
Far from the transaction
More of the
transaction
Less of the
transaction
Search Engine
Service Engine

13. iBuyer Insights

14. 0.2%

15. 5%

16. 3%

18. Included Excluded
Single-family detached, townhouse and condos New homes
Short sales and pre-foreclosures Mobile and manufactured homes
Normal sales through MLS and outside MLS Bank-owned homes
Investor purchases and sales GSE-owned homes
Maricopa and Pinal counties HUD-owned homes
All price ranges Trustee sales
Sheriff sales
IRS sales
Sales under eminent domain
Bulk sales (e.g. investor to investor)
7,370 + 7,370
253 + 180
= 3%November:

19. 1 market
2 markets
4 markets
16 markets

23. $16,800
$11,400
$9,200

27. It’s all about seller leads.

28. 200
20,000
Purchases
Leads
1,354
2,700Offers

31. The single biggest
hurdle facing iBuyers is
human psychology.

33. High Value
Low Value
Low
Frequency
High
Frequency

34. High Value
Low Value
Low
Frequency
High
Frequency

35. High Value
Low Value
Low
Frequency
High
Frequency
Divorce lawyers
Investment bankers

36. High Value
Low Value
Low
Frequency
High
Frequency
Divorce lawyers
Investment bankers

37. High Value
Low Value
Low
Frequency
High
Frequency
Hard to disrupt
Easy to disrupt

38. Purplebricks
8%
Redfin
Compass
10%
3%
Duopropio
10%
DuProprio

39. Purplebricks
8%
Redfin
Compass
10%
3%
Duopropio
10%
DuProprio Compass often describes
itself (and is valued) as a
technology company. Is it?

40. Who wins?

41. The best business models
are exponentially better.

42. 0
15
30
45
60
Industry Average Compass Redfin Purplebricks (U.K.)
Avg. # of Transactions/Agent/Year
www.mikedp.com

43. 0
15
30
45
60
Industry Average Compass Redfin Purplebricks (U.K.)
Avg. # of Transactions/Agent/Year
www.mikedp.com

44. 0
15
30
45
60
Industry Average Compass Redfin Purplebricks (U.K.)
Avg. # of Transactions/Agent/Year
www.mikedp.com

45. 0
15
30
45
60
Industry Average Compass Redfin Purplebricks (U.K.)
Avg. # of Transactions/Agent/Year
www.mikedp.com
10X

46. The start of the consumer
journey is critical.

47. 200
20,000
Purchases
Leads

49. Will consumers price compare iBuyers?

50. Will consumers price compare iBuyers?
65%

51. Will consumers price compare iBuyers?
65% 77%

52. The nightmare scenario…

53. Deep pockets win.

54. £0
£20,000,000
£40,000,000
£60,000,000
£80,000,000
£100,000,000
0
4,000
8,000
12,000
16,000
20,000
Purplebricks Yopa Emoov HouseSimple EasyProperty Settled
Market traction relative to money raised (U.K.)
Live Listings Money Raised (pounds)
www.mikedp.com

55. £0
£20,000,000
£40,000,000
£60,000,000
£80,000,000
£100,000,000
0
4,000
8,000
12,000
16,000
20,000
Purplebricks Yopa Emoov HouseSimple EasyProperty Settled
Market traction relative to money raised (U.K.)
Live Listings Money Raised (pounds)
www.mikedp.com
10X

56. $80M
equity raised
$60.5M
equity raised
$6B
market cap
$1.045B
equity raised
$1.5B
market cap

58. 10X

59. The new models shaking up the
industry are not new ideas.
They are doing what’s only
possible with lots of money.

60. Who wins?

61. Who wins?
- Exponential improvements
- Start of the consumer journey
- Deep pockets

62. Intelligence is the ability
to adapt to change.
— Stephen Hawking
“
”

63. Mike DelPrete
www.mikedp.com