Longtime Fool.com employee and real estate investor Matt Frankel, CFP believes the traditional model of buying and selling real estate will disappear within two decades and iBuying – selling your home directly to businesses – will dominate the market. In this Fool Live video clip, recorded on August 23, Frankel speaks with Brian Bair, Offerpad CEO, to hear his thoughts on the future of real estate ahead of Offerpad's proposed merger with SPAC Acquisition of Supernova partners (NYSE: SPNV)

Matt Frankel: In the few minutes I had left, I wanted to immerse myself in your future vision for the company. I consider myself an ultra-long-term investor and a lot of people at The Motley Fool see it that way. I've argued with one of my editors for the longest time. I say this is how we will be buying and selling homes in the United States within two decades. I have mentioned some rural areas, there will be some exceptions where the traditional model will be necessary but some of them are optimistic about iBuying but disagree with me. Who is right?

Brian Bair: I think you are right. I don't know what that number will be, but I'll tell you how I see it all as if I were using a baseball reference first. We're at the forefront of the first, thinking about everything we've done, created, and done so far in real estate, and we're literally just getting started. There are so many possibilities ahead of us, but the other, the way that we only look at it from a practical point of view, the way that the majority of people are doing real estate transactions right now. It's awkward, so much depends on them. As I always see, why shouldn't you when we can make a strong cash offer you can control the process. You don't have to go through any of the shows or contracts that follow everything that happens to the traditional side, why shouldn't they? Then with our other products, if we can offer products that your house could offer on the open market. We could invest in their home to try to maximize their price. We can use it to offer them other services and products, why should someone take the path that does not have the certainty and control. I am extremely optimistic about where the market will develop and how early in the process it is different than when it is served. It's different, we go further into a technology and they order three and four times a week through the delivery company. These are real estate transactions, there is so much, but as the market presence and our market share increase, more people will come to us first before going the traditional route. The one subtle boast or boast here, just about it. At the moment 95% of our customers are satisfied. We have an NPS score of over 80 on the NPS score. I'm bragging a bit, but I just want to make it really clear that customers who use it leave them with, "Hey, this is too good to be true, this is such a great opportunity, as simple a process as it is was on the old way. " When something is broken and you can fix it, the options are huge.

Frankel: This is my last and then I'll give you the last word. I know you are in hypergrowth mode right now. I don't have it in front of me, but I know you've at least pretty much doubled in the last year. Where do you see Offerpad in 10 years?

Bair: Look, I think that's the magic wand, this is going to be real estate, this is going to be Offerpad, and this is the transition of real estate that they're getting from the consumer. There will be a one-stop platform, an end-to-end platform that people will come to, and everything they can think of about real estate is there. For example, the average homeowner has to have 78 points of contact in order to sell a home. Speak to everyone involved in this transaction. Then when they close the house, they have to hire landscapers, they have to hire pool people, they have higher level smart home technology, whatever it is, but we're going to do real estate with people who can trade them houses, push Get it back the way you can, we made it there. You can do that now, but they will bundle all services, bundle mortgages, bundle titles, bundle landscaping, pool services, smart home technology, energy efficiency. Whatever they want to do in a few clicks, they are going to say money by bundling and it's a huge opportunity for Offerpad as we are going to be staying with this homeowner for the next several years and as part of this trip home. The moment you want to trade in your house you can slide it, but and we buy your house you can move it up and down. Real estate will just go there, and I don't know whether it will take five or ten years. We're going to make it hard, but I think this is not just about iBuying, it's about the fully solution-integrated system that clients get that is easier for them and that they can maximize their time and make the real estate experience easy instead of that difficult as it is today.

This article represents the opinion of the author who may disagree with the "official" referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.

source https://seapointrealtors.com/2021/09/01/the-future-of-real-estate-and-how-investors-can-profit-from-it/

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