Click Here To Try Out TrueBill! http://www.truebill.com/graham – Enjoy! Here is why the housing market could be influenced by Zilow and Redfin, why The Government Shutdown is an issue, and what this means for the future of the stock market – Add me on Instagram: GPStephan
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The Housing Market By Zillow And Redfin:
@seangotcher
Websites like Zillow, RedFin, and OpenDoor have recently launched an “iBuyer” program that allows homeowners to get instant cash offers if they want to sell their home. But in this case, since Zillow and other websites have detailed information on where buyers are searching, where price trends are increasing, and how much every property sells for…they could, theoretically, target the most up-and-coming neighborhoods…buy up the inventory at discount…and then, when they own enough, they effectively “control” the market and set their own prices at a profit.
Redfin responded by saying this was not true, they would rather broker the deal than own it…they never intentionally under or overpay for a home…and only 5% of homeowners prefer convenience to a traditional listing.
But, as far as the TRUTH behind these claims…here are the facts:
First, the TikTok videos claim that iBuyers are lowballing homeowners for convenience…but, the real data says otherwise: Zillow claims that the homeowners who turn DOWN their iBuyer offer receive an average of only 0.09% MORE on their home sale by going the traditional route…and, more recently… it was found that iBuyers actually pay an average of 4% MORE than the homes market value…while dropping their fees alongside with it…meaning, in a way…they’re actually paying more than the home is worth just for the sake of getting to buy it….so, right there…his first argument is completely false.
Second, he mentions that, IF a company like this was able to buy up all the homes in the area…they could pay $30,000 more for that last home and THAT would lift up the value of every other house alongside with it…except…that is NOT how the real estate market operates.
The average homeowner stays 8 years before moving. For a company like Zillow to accumulate enough real estate to create a monopoly, this would be a decades-long phase of accumulating and holding houses…without any guarantee of actually buying enough to make a difference on the market. But, even if they WERE able to buy up all the homes…they would also need to buy all the homes at a discount, which – as we can see…isn’t happening…and, they’d still need to raise the market value of that last home…which, is impossible.
Instead, these programs only seem to be interested in buying homes for two reasons: one is growing marketshare, and two is gathering data. Since they do generate a SIGNIFICANT amount of their revenue from advertising…they can SELL active seller information to third parties for as much as $1875 each….meaning, even if Zillow or Redfin doesn’t make profit iBuying homes…they’re gaining marketshare, they’re gathering a more targeted set of data …and, long term…they’ll probably make a lot of money….but, not by raising the cost of houses in your area.
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And this why we should get coffee and avocado toasts bc tomorrow is never secure lmaoo
I find it rather ironic that investing in US property from outside the country is actually more profitable than being an investor IN the country!
If Zillow wanted to manipulate the housing market they have much better, safer ways to do it than by actually trying to buy up a neighborhood.
However, like this scheme, all of these techniques require buyers to trust the valuation they see online. PLEASE DON’T BE THAT BUYER. Neighborhoods and homes are unique. They all have features and flaws that Zillow can’t possibly know about. If you don’t trust Realtors then you need to develop your own expertise before you make the biggest financial decision of your life.
Wow ur advertising skills I envy lol hey u gota do what u gotta do. Can’t be mad at that lol
Helped me better understand the housing market! Thanks as always Graham!
Don’t trust Zillow ever.
My landlord raised my ghetto apartment rent, again.
They are buying homes around here knocking them down and building McMansions.
Graham you saying the right thing because I don’t see where the fund is coming😂
I love the fact you specified that this is not get rich fast scheme. I don’t know who needs to hear this ,you’ve got to stop saving money . invest some part of It,if you really want financial freedom.
@@paolaeneko_8718 Yeah I agree with you, investing in this economic crises is not a bad idea in anyway.
Invest in bitcoin📌, gold , 📌buy stock, forex 📌market, commodities📌, just invest in anything and save yourself_
I HAVE BEEN MAKING LOSSES TRADING MYSELF…I THOUGHT TRADING ON DEMO ACCOUNT IS JUST LIKE TRADING THE REAL MARKET… CAN ANYONE HELP ME OUT OR AT LEAST ADVICE ME ON WHAT TO DO?
Smile with all sincerity you are making sense.
casa bonita exists???!!!
Grahm im confused invest in real estate, don buy houses. What do you want
I’ve saved over $130k for a down payment and getting out bid by ibuyers. Is it time for me to leave SoCal too??
Zillow and said companies make their money upfront on service fees and concessions…. they can buy high on the back end , doesn’t matter if they buy /
high, they have already made their money, they can sell those homes for 1k more and still make revenue. It is a VOLUME game. How do yall not know that
to you point at @4:55 you’re missing some important context
It can and does work in areas that are being gentrified, rising the cost of living, taxes, etc in the area. These desperate and poor people are more than willing to take really low or any cash offers for their homes as is because they can’t afford the cost of living. I see this happening first hand in Austin TX. Born and raised in the “hood”. When I was born average price of a home was under $100k.. but last year in 2020 it was $437,327. Hell, in 2010 it was $246,561. My generation and newer generations will forever be renting here because we cannot afford to save enough money needed to purchase a home. People who want a home badly enough have to drive an hour away on the highway just so they can find homes around $180k (if they manage to save money some how). But then that’s 40 hours a month of driving to go to work and back, because jobs here aren’t paying it’s people enough to live in the area where they work at.. it’s sad and pathetic how the country let this happen, in the name of profits over people.
I’m looking to buy a house around Phoenix, AZ & the prices have gone up tremendously compared to last year. The thing is, Phoenix’s economy has been booming & I really can’t see it crashing anytime soon. My plan is to live in the property for a year(maybe a little longer) & then rent it out & move somewhere else. I’ve looking into properties on the market for around 280k-320k. I do believe that Phoenix’s prices will remain around this range due to so many people moving there. It might go up even more!
What do you guys think? Any insights are welcomed!
Like and commenting for the YouTube algorithm
04:15 This cut scene is hilarious
Love the primus line at the end, made me chuckle. Very informative video, thanks!
Graham, honestly… your content is so well put together and high quality but the title of your video’s are arguably misleading.
The title of the the video creates false expectations about the content. In the future please select more “accurate titles”
There are people called appraisers. So that’s impossible for zillow to do
Am I missing something? What did the title have to do with the video?
For those that haven’t been to Casa Bonita, picture the worst mexican food you have ever seen but in a cool building with a cool atmosphere. Seriously, their food makes Taco Bell look gourmet.
Graham is better than my econ professor.
That moron thinks sellers set prices. Hilarious.
There are several problems with your arguments regarding the purchase of homes by Zillow and other ibuyers and their ability to manipulate the market. They do not need to own 100% of the houses in a given neighborhood to change prices. For example, a neighborhood with 1000 houses will average 125 sales per year, assuming the average homeowner moves every eight years. Zillow need only purchase 30 or 40 homes in that neighborhood to effectively move the market in a given year. They could easily afford to raise the price they pay for five or even 10 of those houses to move the comps. They then sell the remaining homes for the higher price. Also, companies like Zillow have a conflict of interest. They are estimating the market value of homes they themselves may buy. So anyway you look at it, they are manipulating the market.
Amazing comment 👏
i hope they buy the homes high, and then the real estate market collapses and they lose billions.
Indeed , he is too buterfly 🤣😂😂
Oh no! Not the bacon. 🥓
Zillow and real estate companies of its ilk will be regretting this once the market takes a hit soon when there is no demand/buyers
That blonde in the cut away looked disinterested.
Lmao liked because of 9:00
@Graham Stephan : There are companies buying up neighborhoods of single family homes. The NBC Nightly News just did a segment about it the other day. Companies like Blackrock will buy full blocks of new construction before they’re done, then rent them out. Zillow isn’t the problem, they’re small fish. It’s the deep pocket investment firms that are buying up homes to rent them out. This is the problem that’s occurring in real estate market right now and part of the reason inventory is low.
Yo
Correction.. the stock market is believing that the government will raise the ceiling.
Ignore the clickbait title, buying your own home will be the best thing you ever do.
our economy is corrupt and rotten to the core. people are buying 1000s of different silly cryptocurrencies. real estate is manipulated and super high. the stock market is manipulated and has no relation to the real economy anymore. the federal government is bankrupt. americans have staggering amounts of debt. the pandemic is still going. many supply chains are broken. inflation and stagflation are kicking in hard. the ccp chinese economy may collapse. wow, the future looks so bright, which encourages me to invest in some stuff.
Your insistance it doesn’t happen makes think it really does.
Wait, that Primus wink to Les Claypool was the last thing I would’ve expected from you, Graham! Loved it 🤘
The price of real estate and rent rates are so inflated that I don’t even know how the hell anyone’s going to be able to afford it anymore. Seriously a 4 four bedroom that rented out for $1600 last year now goes for over $2200 a month. Who the hell would be dumb enough to rent for $2200 a month when you can buy at $1200-$1400 a month????
Ppl make a lot of money in real state and they end up with dementia in a nursing home, with tons of money in the bank or stok marketing, you name it. End up with out nice cloths in expensive nursing homes, in a mini apartment no visits, and old cloths becouse family don’t care enymore… thats karma… realstate monopoly put familys children living at walmart parking spaces, succesfull ppl are smart good at realstate monopoly, until they get old and the farmasist monopoly say they have dementia, take away money, driver liscence, and a social worker decide if you can buy a pair oflf stocks for u feets with out pedicura, cold feet… YEP ITS A MONOPOLY.. work so hard take the chances to buy a home low income families, and end up living like a low income family in a small bedroom with a small bathroom in a senior home… KARMA
I’m confused. A few weeks ago you uploaded a video discussing how Zillow manipulates the market. Now, you are saying they don’t. We like you, we support you. More importantly we rely on your videos and data to make financial decisions. Please don’t flip-flop.
Appreciated the “My Name is Mud” snippet lol
Graham, you are the perfect package. Smart, successful, good looking, AND you listen to Primus??
What are yield farms?? There was just an ad for it on your video and I figured you’d know. Love your videos by the way.
Thanks for saying this. I work in housing in a large city. I’ve seen how crazy the prices have increased since January of 2021. It’s been a crazy year for housing. As soon as a home became available, it was snatched up within hours. I would like to see more people who are headstrong against the rise in housing prices. We will not be buying a home in our current, beloved city on principle. We will be leaving in about 2-3 years to purchase a home.
Landlords are insidious… Everyone deserves to afford a home…plenty of ways to get rich. Than being a. Landlords insidious ego
Love your upbeat personality and your videos
What do you expect you got a guy with dementia as the President of the United States. We went from the greatest jobs creator to a Chinese implant
Living well on the beach
Nancy Pelosi is the queen of insider trading. She’s worth over 200 million dollars on $150,000 salary
This guy is just a youtube channel now
Like button 😅
SMASH 💣🔨🔨🔨💨💨
The Securities Market is definitely rigged.
You mean destroy the like button to make more money
Is this video sponsored by Zillow?
I have given up on the idea of home ownership.
Go in to $tking this is the key !
Gram, you forget. Government doesn’t print money. The FED does. If you’re friends with the FED who also probably owns many politicians, you have access to money printer.
Let’s Go Brandon?
Not the bacon
hmmm
You funny how you smoothly advertised truebill lol
Millionaire telling me to do not buy a house , that way he can buy it himself at cheaper price, no thanks, dislike.
Let’s go Brandon!
A company named rent progress owns probably 25% of my neighborhood. I don’t think I’ve ever lived anywhere with so many of the families being renters versus owners.
The result of treating housing as a commodity and not a social good.
I guess a home is only worth what someone is willing to pay. I know how much I want to spend. Nothing wrong with putting in offers. So a homeowner gets offended. Yeah.
Graham is full of crap. One thing my father always taught me never trust a car sales man, a realtor or a YouTube he’s both.
As a person living in Colorado the Casa Bonita reference got me hooked within the first minute. Very informative as always.
Fuk homes that are overpriced
How can you say the system isn’t rigged when they stepped in earlier this year after stopped allowing trades when the hedge funds were losing their asses?
Lol, the government is accusing Zillow of manipulating housing prices. The institution with the power to print currency, currency that is directly responsible for inflating asset prices…is accusing Zillow of manipulation. Pot meet kettle, you’re black.
They wonder why suicide is on the rise
Anyone got contacts at zilo?🤔😂
The YouTube algorithms made it so I haven’t seen your videos in ages. I had to look for you. Thanks for the video ⭐️
If I may, more videos like this. Absolutely perfect.
This advice should be specific to big cities. My city is still affordable too but compared to renting and interest rates are still low. We are a year or two from approaching unaffordable at this rate, but there’s still a window.
Interesting that Red Fin started out as a Web host company.
Hi Graham…Thanks for the video. There are still people reading disclaimers.
Loved the small mention of Primus !
Dude, what’s up with the clickbait title?
So much corruption but we’d rather watch squid gays
CAPTIAL GAINS TAX!!!
Edit: I spent 25$ on bacon the other day so your bacon point was spot on.. I couldn’t help but laugh very hard🤣
Seems like the Zillow guy was right….
stop buying homes… so that I can buy them
We’re all forced to watch meet Kevin to figure out which stocks to buy!
Let’s go Bran…..
Yo, should include the fact that the actual inflation rate might be much, much higher due to shrinkflation and probably skewed govt reports.
I hope you are still hodling that shib
i’ve re-listened to this video a few times trying to figure out how the title of this video applies to the information given….. any help? This was just an information puke. That being said its all decent information but the title of the video was not addressed. Might have missed it though. help me out if he does actually talk about it. IF he did say something i’m guessing he says “stop buying homes, unless buy under market value”.
This is true and the arbitrage system
Bacon is the most expensive its ever been! 😂😂😂😂
fooo knows that creators have a lot to manage. It’s not easy being a content creator of your calibre and fooo enjoys your stuff. That’s actually the reason fooo is bothering to comment here at all. It’s getting a little off-putting when the titles of your videos are so misleading at this point (click-baity but also just straight up misleading) that fooo doesn’t even know what the video is going to be about. It demonstrates a certain disrespect for the watcher’s time in fooo’s opinion. Do what you will with this information, and again no hate or anything, just trying to offer you constructive criticism, unsolicited though it is. Best regards.
Is this considered as wholesaling? Correct me if I am wrong
I disagree with your “it’s like Amazon making their own products” statement because Amazon is competing in a market even if it’s not entirely fair it’s still competition. Zillow is just controlling supply and not allowing anyone to compete.
Normally I’m not for regulation but how do we stop people or a company from basically owning an entire area and setting whatever price they want? Land is limited and housing even more so. Even if Zillow isn’t doing this so many companies already are and it’s ridiculous. I’m in a small town I’d call it a low income area and somehow this small old run down houses are still insanely expensive
Move to Minnesota or Arizona bro
Didn’t know you were a Primus fan
I am praying for a small nice house in a pretty neighborhood!
So we can say that this video to polish Zillow
Zillow: inside trading … let’s say
Im 35 and single who needs a 2000 sq foot house for $250,000 plus for $25,000 buy a rv. No school taxes no land taxes just travel around the country in style