Pros and Cons of Using Opendoor to Sell Your Home
Opendoor has become quite the buzz in the home buying and selling scene. They seem to have advertisements everywhere; on the radio, tv, social media, and more. Still not sure what it is? Opendoor is a one-stop-shop for all things buying and selling real estate that has been featured in major publications such as Forbes, The New York Times and WSJ. It’s an innovative way to sell your home, combining competitive offers and fast sales without the hassle of listing and showings. Sounds too good to be true, right? We did a little digging to see just what this Opendoor thing was all about, and this is what we discovered:
Opendoor is All About Convenience
In a world where we need things to be quick and easy, Opendoor is just that, quick and easy. It’s a user-friendly resource for sellers. They can input the details of their home, receive offers, close when they’re ready and get paid quickly. For busy families, the idea of not having to get your home “open house ready” is another perk, as this website eliminates the need for open houses and strangers walking through your home looking through your stuff.
Opendoor is a Real Estate Tool
It’s right for the experienced seller who knows the ins and outs of a home sale and knows the questions to ask and the red flags to look out for. It’s also good for sellers who are in a rush, as sellers who feature their home on Opendoor typically receive an offer within 2-48 hours. The right seller must also live within the parameters of Opendoor’s service areas, which are:
- Dallas-Fort Worth
- San Antonio
- Las Vegas
- Minneapolis-St. Paul
Opendoor Strives to Make Buying and Selling Real Estate Simple
- Not needing to send anyone out to do an inspection
- Offering convenient options when it comes to maintenance and repairs
- Allowing the seller to choose their closing date timeline
- Providing the opportunity to “rent” the home back from Opendoor for 14 days after closing to remain in the house before moving.
The Not So Good
It’s All in the Numbers
Most of the “not-so-good” aspects of Opendoor are related to the financial side of the transaction. While they do pride themselves on making the experience as convenient and straightforward as possible, its’ downfall comes in regards to the overall purchase price of the home and fees. Typically, homes sold on Opendoor sell for about 15k less than on the traditional market. If 15k is pocket change and you’re more interested in a fast sale, Opendoor might be a good choice for you. However, if you’d prefer to get a higher offer and are okay with the typical waiting period for the market, you may want to reconsider. Their seamless home buying and selling experience does come at a COST. Experts say that some of Opendoor’s transactional costs are double the average price, and then you throw in a handful of holding and rehab fees, and it gets pretty costly.
Opendoor charges an average of 7% for their services, but their website says that it could be as high as 13%. The fee is based on how long they anticipate it’ll take to sell your home, based on the information you provide and the comps in the area.
A Real-World Example
Two local Winter Garden homeowners listed their gorgeous homes on Opendoor and received an immediate offer. However before they committed to selling with Opendoor, they contacted the Erica Diaz Team to see what their homes were really worth.
The first Winter Garden property received an Opendoor offer for $270k. Erica Diaz and her team took one look at the house and knew they could get more, so they listed it for $290K… the offers came rolling in! Within 24 hours there were a handful of offers, the property appraised for $290K, and it was a done deal in 30 days.
It happened a second time, again in Winter Garden, where Opendoor offered a homeowner $204k and the Erica Diaz team was able to sell it for $245K. If you’re selling property in Central Florida, get a second (and third) opinion before listing for the rate Opendoor offers. You could be shorting yourself thousands of dollars!
Opendoor is Changing the Way People Buy and Sell Homes
It’s an innovator in the real estate world and is forcing the industry to re-think some of the outdated, frustrating, time-consuming practices that come with buying and selling homes. If you hate the idea of basing your schedule around showing your home, there are ways to make it simple and convenient without forfeiting a considerable chunk of your profit. We love the idea of a simple and hassle-free way to sell you’re home, but we’re not so sure about all of the hidden fees.
Work with an Erica Diaz Team Real Estate Agent
This will allow you to stay in control of the home selling process without costing an arm and a leg. Of course, all real estate agents have fees, but they are upfront and generally lower than those on Opendoor. You don’t have to go through a third party website for a fast and profitable home sale.