Pros and Cons of Using Opendoor to Sell Your Home
Opendoor has become quite the buzz in the home buying and selling scene. It seems to have advertisements everywhere: on the radio, TV, social media, and more. It’s been featured in major publications such as Forbes, The New York Times, and WSJ.
Before jumping in with both feet and using Opendoor to sell your home, make sure you know the pros and cons. Yes, there are some situations in which using Opendoor is the best option. However, partnering with a local real estate agent is typically going to be a better option.
What is Opendoor
Still not sure what it is? Opendoor is a one-stop shop for buying and selling real estate. It is making its mark as the 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? We did a little digging to see what this Opendoor thing is all about, and here’s what we discovered!
The Good
Opendoor is All About Convenience
In a world where we need things to be quick and easy, Opendoor is just that. It’s a user-friendly resource for sellers. They 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 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, the questions to ask, and the red flags to look out for. It’s also good for sellers in a rush, as sellers who feature their homes 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 Phoenix, Tucson, Denver, Austin, Dallas-Fort Worth, San Antonio, Houston, Las Vegas, Atlanta, Orlando, Tampa, Jacksonville, Raleigh-Durham, Charlotte, Nashville, Salt Lake City, Minneapolis-St. Paul, Las Angeles, Sacramento, Riverside, Portland
Opendoor Strives to Make Buying and Selling Real Estate Simple
- We do not need 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 pride themselves on making the experience as convenient and straightforward as possible, its downfall comes with the home’s overall purchase price 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. 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 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. Click here to discover how much you may minimize your profits by using an iBuyer like Opendoor.
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 opinion before accepting the rate Opendoor offers. You could be shorting yourself thousands of dollars!
The Take-Away
Opendoor is Changing the Way People Buy and Sell 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 your home, but we’re not sure about all the hidden fees.
Working with the Erica Diaz Team to sell your home can be customized to fit your needs, and you won’t lose the money that’s yours! It’s an innovator in the real estate world and forces the industry to rethink some outdated, frustrating, time-consuming practices that come with buying and selling homes.
Erica Diaz Team – Pros and Cons of Using Opendoor to Sell Your Home
Contact the Erica Diaz Team to see precisely how much your home is worth before you list your home on Opendoor and wait two hours for your magic (but probably too low) offer. They are dedicated to getting you the most for your home in the least amount of time. This will allow you to control 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.
