Does anyone have any experience with this company? Wanted to put in an offer on a house they own, but they said they won't consider any contingency offers. We would either have to sell our current house first or sell our house to them.
I saw some reviews where they nickel and dime you with repair costs when they purchase your home, what kind of issues are there when buying a home from them if you dont mind me asking?plowboy1065 said:
We have a copy of their purchase contract and the fine print details is where they really get you on purchasing your home. Much better off listing with a realtor
Yep...that's their bread and butter right there. It looks to me like they are going to end up with a huge amount of junk inventory. As an outsider (of their company model) looking in I'm not sure how it's sustainable.Diggity said:
I'm amazed at how much capital is flying towards these guys.
The idea that they're going to disrupt real estate and the "6% commission model" by charging 7-12% to the seller and low balling them is crazy to me.
I feel like their whole business plan is to exploit ignorant/desperate sellers.
It seems like they go after properties that need paint and a light touch up and then do the cheapest, ****tiest, job possible.Quote:
I feel like their whole business plan is to exploit ignorant/desperate sellers.
CypressAg09 said:I saw some reviews where they nickel and dime you with repair costs when they purchase your home, what kind of issues are there when buying a home from them if you dont mind me asking?plowboy1065 said:
We have a copy of their purchase contract and the fine print details is where they really get you on purchasing your home. Much better off listing with a realtor
so they don't plan on selling the property for more than they paid? Otherwise, it's definitely "buy-low, sell-high"Quote:
Unlike a buy-low, sell-high investment strategy that relies on price appreciation, our business model is fee-based. We charge a service fee similar to the realtor commissions in a traditional sale. The service we provide is the certainty of a competitive offer and the ability to move on your own timeline; we're also dramatically simplifying the process for a better customer experience overall.
so let's clear up this misconception about our service by offering a misconception about the traditional sales process. Seller concessions are market driven and I promise OpenDoor keeps them in mind when calculating their offers (as do appraisers). You will still have nearly the same closing costs with OpenDoor as you would with traditional real estate. They just call their 7% charge a "fee" rather than a "commission".Quote:
Misconception 5: Opendoor charges hidden fees and is more expensive than a traditional sale.
When you sell your home to Opendoor, you pay a service charge. When comparing our service charge to the costs you'd pay in a traditional sale, it's natural to anchor on the 5 to 6% people typically pay in realtor commissions.
The truth is that selling your home on the market actually costs more than thisit can add up to about 10% of the sale price. There are additional costs that come into play later like seller concessions, staging costs, closing costs, and housing overlap costs. It's also important to keep in mind that 37% of homes listed on the market for 3-4 weeks drop their asking price.
Absolute said:
If you want a good laugh get a quote from them on your house.
I can Echo this. I actually sold to Opendoor in the Phoenix metro area December of 2017. We approached Opendoor Dec 3 and closed on Dec 26th. This allowed us to move to Houston and get a house there in one month due to having a guaranteed sale of the house and the money available for purchase the first of the year.Jay@AgsReward.com said:
The value proposition for the seller is convenience, not having to make a contingent offer on next house, guarantee the their buyers financing goes through etc. So, all attractive from a sellers point of view. But, wow, the cost! A bridge loan is MUCH cheaper and provides all the same upside as Opendoor from a seller point of view.
AggieFrog said:
Update - went with an agent, which turned out to be a mistake. House has had no offers after 6+ weeks including a price reduction below what OpenDoor offered. Will likely have to just give up on the new build and stay in our current home at this point.
As with anything I suppose every situation is different but OpenDoor's offer was better than the market is bearing.
We've seen them overpaying for homes as well. Not sure who is backing them, but they better have deep pockets.Diggity said:
I have talked to a couple guys that have received offers from OpenDoor that were higher (in some cases significantly) than what they could likely get on the open market. These are lower end homes/investment properties, but that's still very strange to me.
I suppose the algorithm they use isn't always perfect (similar to Zillow) but I don't know how long a company can afford to overpay for homes.
If you get an offer from OpenDoor that appears to be in line with the market (or better) when taking into account the fees, I would take the thing. No reason not to.