The Northeast is the major population center of the U.S., but has remained untouched by disruptive new models in real estate — until now. Opendoor, Zillow, Offerpad, RedfinNow and Orchard are establishing the first footholds in this potentially lucrative market. Traditional agents and brokers have had years to prepare — are they ready?
The strongest iBuyer markets are centered in the West, Southwest and South — basically everywhere except the Northeast and Midwest. These markets, with older housing stock and longer winters, are more difficult to crack.
Major iBuyer markets
But it’s no secret the iBuyers (and other models) plan to enter the Northeast. Opendoor’s investor presentation clearly laid out the playbook and plan of attack, which includes expansion into the Midwest and Northeast corridor.
Opendoor’s target markets
Based on a pair of recent job postings, it appears that Opendoor is starting in Washington D.C., Virginia, and Maryland — a market that RedfinNow and “Power Buyer” Orchard also entered earlier this year.
In early 2021, RedfinNow was the first iBuyer to launch in Boston. Meanwhile, Offerpad is expanding through the Midwest, recently announcing a launch in Columbus. This sits alongside Zillow Offers’ presence in Cincinnati, a market launched in 2020.
Strategic implications
Traditional real estate agents located in the Northeast and Midwest have had years to watch and learn. Billion-dollar disruptors are coming, featuring new models like instant offers, cash offers and buy-before-you-sell programs.
The Northeast accounts for 17 percent of the U.S. population, and local Realtors can be zero percent forgiven for ignoring the coming disruption. Change is happening (slowly) and smart agents are adapting to that change. No market is immune. What’s your plan?
Mike DelPrete is a strategic adviser and global expert in real estate tech, including Zavvie, an iBuyer offer aggregator. Connect with him on LinkedIn.
