Charlotte Market Tops List for Rising iBuyer Users

Charlotte Market among the top in the nation for iBuyers

The Charlotte real estate market is booming among all categories, but a recent study by Redfin found Charlotte to be one of the fastest-growing markets when it comes to home sales made through online platforms.  The Redfin study looked at iBuyer transactions in the Charlotte region made through Offerpad, Opendoor and Zillow.

IBuyers are real estate tech companies that buy and sell homes through online platforms. According to the study, 4.3% of homes purchased in the Charlotte market were made by iBuyers in the third quarter of 2019, ranking Charlotte No. 4 market in the country.

18 markets were included in the study, and it was determined the entire iBuyer market share was 3.1%.  Raleigh landed the No. 1 spot, where iBuyers accounted for 6.8% of home purchases. Phoenix, Atlanta and Houston all made the top 5.

iBuyers appear to be concentrating their efforts in southern markets with strong growth in sales and prices.  iBuyers are likely to accelerate home sales in these markets due to the ease of transaction for home sellers.  The study found the most iBuyer activity is in markets where typical home prices were below the national median — around $312,200 in October.

In the Charlotte market, the median price of a home sold by iBuyers was $207,550, compared to the metro-wide sales price of $264,300.

When an iBuyer buys a home, the company often does repairs and renovations in order to market the property at a higher price. Most companies say they pay fair market rates when buying the home and make their profits by charging higher fees for the convenience.