againer t1_iuaqxyc wrote on October 29, 2022 at 9:55 PM

Reply to comment by opienandm in Rising mortgage rates will exacerbate the housing situation in RVA by BumbleBeeVomit

Redfin will give you a cash offer

Zillow

Airbnb

Charlesinrichmond t1_iub1tcg wrote on October 29, 2022 at 11:20 PM

Zillow is out of the ibuyer market a while back. Not clear redfin now has bought any houses in Richmond

Airbnb has certainly not built any houses in Richmond. And is just not that big a deal, we aren't Austin or Nashville

againer t1_iudpq4h wrote on October 30, 2022 at 3:35 PM

Yeah, I wasn't being particular to those companies in the Richmond market. Just that their moves indicate a trend.

Charlesinrichmond t1_iudqk06 wrote on October 30, 2022 at 3:41 PM

it's actually been going the other way - turned out their models weren't working and they lost a fortune, so everyone is dialing back. Given a down market I expect that will happen even faster

againer t1_iudtekr wrote on October 30, 2022 at 4:00 PM

Yeah. Too risky to their bottom line and best to stick to their core business model.

Charlesinrichmond t1_iudu55e wrote on October 30, 2022 at 4:06 PM

they loved the idea, but they were getting slaughtered. Read up on the zillow mess you might find it amusing. And that was in an up market

againer t1_iuduua6 wrote on October 30, 2022 at 4:10 PM

Yeah. VCs, tech valuation, and "profitablity" is a fucking wild landscape. Meta is a prime example of that.

opienandm t1_iub35rb wrote on October 29, 2022 at 11:31 PM

You know they don’t hold those assets, they flip them as soon as possible, right? Dumping would imply a liquidation, which I’ve seen no indication of happening. Do you have data?

againer t1_iudv6cy wrote on October 30, 2022 at 4:13 PM

I should have clarified that it's the big corporate homebuyers who are going to be the bag holders on toxic home assets. Not the three companies I originally indicated. I didn't mean like wholesale liquidation as in they own thousands of homes, just getting rid of the inventory of what they do own. I don't see it majorly impacting the housing market here or at large. Just pointing out that it's a signaling indicator.

Some of the big corporate homebuyers can carry the float. Only for so long though. At the end of the day though, no one likes going to their boss and saying "Yeah I lost us a ton of money by holding on too long". Even CEOs fear the board.