Opendoor is certainly picking up steam in the Real Estate industry, disrupting the way people buy and sell their homes.
If you haven’t heard of it already, Opendoor relies on very refined home valuation technology that considers thousands of factors that influence the value of a home. The company will make an offer as determined by this technology and homeowners sell directly to them, for cash. The transaction closes in as little as three days, Opendoor makes improvements to the home based off an inspection, if needed, and the home is re-listed.
Folks interested in purchasing a home from Opendoor can visit the home at any time they want using a mobile app to access properties and interested buyers can make offers on the home online. Opendoor also offers a 30-day guarantee to buyers that the company will buy back the home if they are not satisfied and a 2 year warranty on major appliances and the electrical system.
The company makes money using a method similar to the standard real estate commission model. It takes a service fee of 6%, plus a fee that assesses the riskiness of the transaction, bringing the total charge to an average of 8% — Significantly lower then the cost of using a traditional realtor potentially saving you thousands.
Watch this video to learn more about how it works
Opendoor appeals to home sellers who value the certainty of a sale over getting the highest price and home buyers who value the flexibility and freedom Opendoor is offering. The company is betting that there are hundreds of thousands, if not millions, of these kind of buyers and sellers.
As consumers become familiar with changing technology, more and more adopt it, meaning more people stray from the traditional real estate model.
Opendoor first launched in Phoenix, Arizona in 2014 and after 6 months the company had dozens of successful transactions. “Everyone laughed at first, chuckled, snickered in the background,” said Neil Brooks a Realtor with HomeSmart International in Scottsdale, “they’re not laughing anymore.”
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If anyone has any first-hand experience using Opendoor, make sure to leave your feedback in the comments below.