Death of the i-Buyer (agents, contracts, value, stocks)
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Sometimes, companies will purposely "lose" money on things, just to~
A. Attract new/more customers, or
B. Reduce their tax liability, or
C. Have saturated their investment portfolio. Or made all the capital improvements they can for the fiscal year.
And sometimes companies just lose money because they have poor business plans. Other companies lose money because their founders take them public only to siphon off massive amounts of cash for their own personal enrichment at the expense of the patsy-stockholders. I would say that there's been quite a bit of the latter going on.
Sometimes, companies will purposely "lose" money on things, just to~
A. Attract new/more customers, or
B. Reduce their tax liability, or
C. Have saturated their investment portfolio. Or made all the capital improvements they can for the fiscal year.
For A, CostCo uses the $4.99 rotisserie chicken, and $1.50 hotdog & soda, as "loss leaders" to get customers in the store. (And more precisely, the BACK of the store.) This means you have to pass all those other goodies that CostCo offers, just to get your chicken...Believe me, this WORKS too.
Carvana, is now going through, the "cleansing" that Zillow/Redfin are currently going through.
The one, single thing, these all have in common? The cost of money has skyrocketed....
of course.
Except Costco sells thousands of items, not 1.
Costco actually makes a profit, and uses its deductions wisely, versus having a real loss on something.
And yes, individuals & institutional investors often sell a stock at a loss in order to offset the gains of another sale.
None of those apply to the iBuyers.
The only possible one would be if they did a great job booking ancillary services - making say $5K per house on title insurance/closing services, or a cut of homeowners insurance - especially mortgage where the lenders cut their upfront fees for the "annuity" of interest rate spread.
Except the iBuyers have never become good (market share or profit) at those services either.
They always had a poor business plan not built to last. Built on sand if you will. I agree with what you said but I don't think a retail model is applicable to a a real estate model in this intstance.
No longer a REALTOR.
No longer looking for business.
Shuttered the LLC.
Sending clients to a good local guy.
I can take referral fees until June 30.
It's good.
Thanks, Brandon!
Mike, I somehow missed this. Man, I am proud of you for not hanging onto the license trying to stretch it out forever like I am currently doing. I haven't mustered up the courage to pull the plug with excuses like "I'll just do the ones I want" and "it pays so well I'd be crazy to give up the license". That sounds great in theory but in practice it's preventing me from doing some other things I'd rather be doing. Been saying next year for what feels like forever. You may have been exactly the inspiration I needed. Gonna miss you around here, buddy, and hope retirement is better than you expected. Cheers.
Mike, I somehow missed this. Man, I am proud of you for not hanging onto the license trying to stretch it out forever like I am currently doing. I haven't mustered up the courage to pull the plug with excuses like "I'll just do the ones I want" and "it pays so well I'd be crazy to give up the license". That sounds great in theory but in practice it's preventing me from doing some other things I'd rather be doing. Been saying next year for what feels like forever. You may have been exactly the inspiration I needed. Gonna miss you around here, buddy, and hope retirement is better than you expected. Cheers.
Congrats Mike! Just seeing these posts and your new tagline.
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