I-Buyer and Build-to-Rent : Upcoming Trends for Albuquerque Real Estate
Transcript Snippet: “Tracy:
Okay.
Tego:
So
Tracy:
Let’s talk about something else. Well,
Tego:
I wanted to, yeah, what, what, I, let me set this up a little bit. If I, if I may. So, you know, Albuquerque and New Mexico, I think, you know, a lot of us joke about this is, oh yeah. You know, we’re always a couple, couple years behind everybody else. And, you know, we get things later, which is, which is fine, you know, we’re okay with that. And that’s true in the real estate world as well and organized real estate. And there’s a, a couple trends that have been happening around the country that are either here or coming to Albuquerque. One of them is the Iyer thing and the other one is what’s called build to rent. So if you want to take, what
Tracy:
Does IBuyer mean?
Tego:
Yeah. So that’s what I want. Yeah. What does buyer mean? It doesn’t,
Tracy:
Matter’s like, it’s like internet buyer, but it’s really,
Tego:
It’s just a term that, that Inman news, which is a real estate publication came up with, they just call it Iyer. So what is IBU? What does that mean?
Tracy:
Iyer is usually a very large business that buys a house for cash mm-hmm <affirmative> and makes an offer as is, and can close in three days or three months or six months, whatever you want. Yep. And they’re just gonna come in and make an offer and they’re, they’re not a person coming to move into your house, right?
Tego:
Yeah. Yeah. So these are what, what I would call institutional barely. Yeah. Institutional flippers. And but when we think of home flip, we think of people buying homes really cheap you know, that are, that are in need of, you know, that are really disrepair in doing some major, fix up adding equity, you know, bringing home back and then putting it back on the market. And what these guys do are buy homes, not necessarily that are a mess, they buy homes, clean ’em up. Maybe do some light cosmetic work and then put it back on the market. The, the value add that they’re giving is they’re allowing sellers to basically, you know, get a cash offer in their home and sell, selling that timeframe. Yep.
Tracy:
Choose the closing date,
Tego:
Not deal with all these contingencies dealing with, you know, getting loan, approvals and, and stuff for the buyer. So it it’s very big in Phoenix has been for a while, very big in Dallas, been for a while, Atlanta, Orlando, you know, all over the country. So we’ve been seeing it well, it’s here now in Albuquerque. The thing that’s you know, Tracy, you and I like about it is us as realtors. We can help a seller navigate this process. Right,
Tracy:
Right. So we can when we meet with you to talk with you about selling your home, we can say, would you like us to get an offer from one of these IBUs that offers cash? And honestly, we did this before
Tego:
And I wanna make it clear. There’s, there’s a few of them here. There’s not just one.
Tracy:
Right. So we’ve actually done this with the property that we had near Arizona state university when our kids finished school and we didn’t need it anymore. We had done all the repainting and all the cleaning and fixing, and, and then our realtor there who happens to be our brother-in-law said, Hey, let’s just float it to them and see what kind of offer they’ll give you. And actually it was a really fair offer and we took it.
Tego:
Yeah. So it’s, there’s
Tracy:
There’s so the, the myth could be that they offer you very, very little, and we don’t know yet for some of the new ones.
Tego:
And we don’t know, and we,
Tracy:
What they’re doing
Tego:
Here, we’ve heard both, right. We’ve heard really low ball offers. We’ve heard above what, what people think that it should be. So we’ll see, but it, but it is an option for homeowners that just want to sell. They don’t wanna show their home. They have to get it sold before they can buy, you know, all these different situations where the traditional listed on the market, show it, you know, get your highest and best offer. You know, that’s always gonna be how you net the most right. Is, is the traditional. When I say traditional basically list with the realtor, do all the marketing, do all the stuff that we do, you know, and get it out in front of as many buyers as
Tracy:
Possible. Right. However we get to now, when we meet with you, we get to also get your permission to float it to these institutional buyers and see what they’re willing to offer and represent you in that. And, you know, we know what the market data suggests your home might be worth. And so you’ll know if it’s a good offer or not. And, you know, Tigo, we’ve worked with a lot of people where we’ve personally bought their properties. We make an offer because they need it. You know, people with several kids work from home, they have pets dogs. They have somebody maybe not well in the home or elderly that they just can’t leave for showings. And for a lot of reasons, people don’t wanna go on the market regular. Right. sometimes it’s a house just full of stuff. You know, we, we had one not long ago where I guess the term is hoarder. Yeah. The house was Fullen. There was just a little path through things and they didn’t want it on the market. They just wanted an offer. Yeah. Yeah. So there’s lots of reasons
Tego:
That the other, the other trend, I just wanted to talk about that we’ve seen around the country is this thing called built to rent. Right. And again, it’s one of those terms. You go, well, what does that mean? Well, it means for single family homes, what, what you’re seeing is whole neighborhood’s being built out. And instead of going for sale, like you would expect they are going directly to rent. So some of those, those type of developments are coming to Albuquerque, expect to see him in a year, year and a half, something like that. But that’s coming where you’re gonna see whole neighborhoods of single family homes being built that won’t be for sale. They’ll just be available to rent and, you know, people are gonna debate well, is it a good thing or bad thing? Well, the, the reality is we need more homes either for rent or for sale. We need both. We have a shortage of homes in Albuquerque and continue to have a shortage of homes in, in the Albuquerque area.
Tracy:
It’s gonna be interesting to see, I know at the luncheon this week, they said that certain developers were looking at 10 different sites right now to do some that.