Bots are now buying houses. Computerized stock trading works because the buy and sell orders don’t require humans anymore. They just trade assets. Real estate is an asset, but it is trickier because the asset can be damaged or have other circumstances surrounding it. But, that is simply risk, and risk can be mitigated and incorporated into finding the right price to buy at. Software is now browsing new listings, comparing the asking price against the software’s estimate of a profitable bid, and then buying the houses where the profit potential is the greatest. The software can’t close the deal. Humans are still involved in inspections and site evaluations, but the offer on the house can deter other buyers. If everything looks good, the company running the software buys the house with the expectation of selling or renting. Real estate just met the Wall Street bots.
“Racing To Buy Homes Sight Unseen” – Wall Street Journal
Pretending Not To Panic 