In the same city where iBuyer Opendoor first set out to disrupt the housing industry in 2014, a new online real estate marketplace is emerging.
Kribbz launched in Phoenix last week, and its founders are hoping to streamline the home-selling process, all while offering a fee-free service for sellers. And the company isn’t shying away from comparing itself over the iBuyer model.
“iBuyers are purely focused on the bottom line, and through a combination of offer price and fees will get to a number that works for them. It’s a take it or leave it proposition,” Kribbz co-founder and CEO Kent Clothier said. “Kribbz marketplace is fee-free for the seller and facilitates bidding from a broad cross-section of potential buyers. End of the day, the seller has market validation and therefore the confidence that they are getting the best immediate, all-cash offer available, and as importantly, that what they see now in terms of offer price, is what they get in their pocket later.”
According to Kribbz, the company’s model is to provide an online marketplace that allows homesellers to source multiple, fee-free immediate offers on their property from investment-grade buyers. The company aims to launch in other markets throughout the remainder of this year and into 2020.
Sellers won’t have to worry about open houses or the cost and time burdens that come with showing a home, the company said. This, of course, is similar to other iBuyer models. Kribbz’s biggest selling point? The fees land on the buyer.
“Even with the rise of iBuyers, home sellers remain subject to fees and commissions that range from 6 percent to 14 percent of the offer price, which significantly impacts their net takeaway,” the company stated in a press release. “Kribbz fee-free, no-obligation experience removes after-the-fact charges and expenses for home sellers. Furthermore, by bringing together multiple buyers in a 24-hour bidding process, home sellers can receive several, competing offers on their property, giving them added confidence that their instant offer is the best available.”
According to the company, buyers on Kribbz are typically real estate investors. They have access to properties on the site by going through a paid subscription of almost $300 per month. There is a daily bidding cycle, and buyers are notified about available properties at the start of each one. Should their offer be accepted by the seller, the buyer then pays a $3,500 transaction fee to Kribbz. According to the company, all escrow-related activities are tracked in its app in real-time to all parties, and they can expect closing in no more than two weeks’ time.
“Technology is fundamentally reshaping real estate, making it a different industry today than it was even two years ago. Despite this, long-standing issues remain as homeowners continue to get punished with fees and remain subject to agendas that don’t align with their goals,” Clothier concluded. “By bringing together buyers and sellers in a marketplace environment, Kribbz streamlines and democratizes the entire experience, allowing both sellers and buyers to achieve their goals.”