Selling house to Opendoor or any I-buyer

[candrew]

In the years since Open Door moved into the Phoenix market, I have seen a number of Open Door offers, as have some agents I know. Not one has been anywhere near fair market value, once all the BS fees are removed.

We sold our home in the Phoenix area almost 1 year ago. After interviewing several realtors we decided to sell to Open Door. Our net after fees was 6% greater than what the realtors had considered to be fair market value and we were able to push our closing date out 90 days. Additionally, we were spared the expense of having to repaint the home's interior - as recommended by the realtors. No hassles of showings, etc.

I'm sure that others have had experiences different than ours as you have indicated, however, we were completely satisfied with the entire process and outcome.

 

[SJ1_]

We are considering selling our house while the market is still good. We did the online survey with Opendoor and the offer was not bad. We are considering doing the next steps.

Has anyone sold their home with Opendoor or any other I buyer?

We used them was surprised at the offer and they did everyting they said they would . Had a friend before us that used them and had the same experience

 

[Another Reader]

We sold our home in the Phoenix area almost 1 year ago. After interviewing several realtors we decided to sell to Open Door. Our net after fees was 6% greater than what the realtors had considered to be fair market value and we were able to push our closing date out 90 days. Additionally, we were spared the expense of having to repaint the home's interior - as recommended by the realtors. No hassles of showings, etc.

I'm sure that others have had experiences different than ours as you have indicated, however, we were completely satisfied with the entire process and outcome.

If you are willing to share, I would like to look at the numbers and the property... I am aware of one transaction early on where the agent and I think they failed to discount for the property backing to the freeway and possibly the extent of the needed bathroom remodel. Took them a long time to sell it and they reduced the price.

 

[NameTaken2]

Not in an area known as a hot RE market, but every selling price is crazier than the last. They just go up and up. Most listings show "pending" between 1-7 days.

I think the prices are nuts, but buyers obviously don't.
If I was selling, I'd add about 10% to the last similar sale and expect a bidding war could add another 10% min.

 

[NancyH]

Open door links to China

Open Door has links to China. Eric Wu, cofounder and CEO of Opendoor, became a billionaire on Monday, the day the home-buying firm began trading through a merger with a SPAC called Social Capital Hedosophia Holdings II.

Some of these companies like Open Door are buying up properties, fix them up and then turn them into rentals if that is more profitable then reselling. Often the rents are so high, a single family cannot afford to live there so it is not uncommon to end up with multiple families or unrelated persons in the rental. If you care about the neighborhood you are leaving, selling to one of these home buying conglomerates might be a bad move.

 

[street]

Interesting!!
So, Open Door doesn't charge you the 6 to 9% for selling a home like a traditional Real Estate Company?

Do they charge you anything?

 

[ScoopKona]

Interesting!!
So, Open Door doesn't charge you the 6 to 9% for selling a home like a traditional Real Estate Company?

Do they charge you anything?

Yes. There are fees. It was less than Realtors. But mostly I sold to them because they offered considerably more than the house comped out at.

They offered more. They charged less. I told them what day I wanted to close and they did it. I'd go with them again in a split-second if they're going to keep doing that.

 

[ScoopKona]

If you care about the neighborhood you are leaving, selling to one of these home buying conglomerates might be a bad move.

I knew all of this going in, and sold it to them anyway. Nobody else was going to offer that much for that property and I didn't have to fix 10 years of tenant damage.

Basically, I sold my house to "the reason average people can't afford a first house anymore."

But that reason offered considerably more than list and charged less than Realtors. If I was a Realtor, I'd start training for a new career.

 

[retire202052]

If you care about the neighborhood you are leaving, selling to one of these home buying conglomerates might be a bad move.

........this made me laugh

 

[street]

Yes. There are fees. It was less than Realtors. But mostly I sold to them because they offered considerably more than the house comped out at.

They offered more. They charged less. I told them what day I wanted to close and they did it. I'd go with them again in a split-second if they're going to keep doing that.

Sounds like the way to go! Less hassle and less time wasted seems very attractive way to do business.

Thank You!

 

[UnrealizedPotential]

Interesting!!
So, Open Door doesn't charge you the 6 to 9% for selling a home like a traditional Real Estate Company?

Do they charge you anything?

As I understand it, there is a base fee of 5%. Beyond that, it depends on a lot of unknown details.

 

[street]

As I understand it, there is a base fee of 5%. Beyond that, it depends on a lot of unknown details.

Thanks. I'm going to go look at their site and get some more info on them. The simpler the process can be and still get a reliable deal the better.

 

[UnrealizedPotential]

Thanks. I'm going to go look at their site and get some more info on them. The simpler the process can be and still get a reliable deal the better.

You might also want to look up Mike DelPrete . He is credited with being an Ibuying expert. He writes articles on that subject. Perhaps you can get a better idea from him of the ins and outs. Good luck!

 

[retire202052]

Thanks. I'm going to go look at their site and get some more info on them. The simpler the process can be and still get a reliable deal the better.

Basically .....after an initial online offer, I did a 20 minute zoom walkaround in my house with an Opendoor rep. The next day, a guy came out and walked around the outside of my house for like 10 minutes. The next day, they had my final offer.

My initial offer went up $2000. They deducted 5% fee, .6% closing costs and in my case, $6,900 for repairs. My house is 28 years old. I know if we were to fix it up to be able to sell it, we would have to pay at least that much. And in our particular case, we were able to push our closing date out until our new home is done.

Since, then we have been working with the title company getting everything ready. Everything has been smooth and pain free....so far...even got our lock box in the mail today.

 

[sengsational]

If you net more from an i-buyer than you would have gotten from a well executed traditional sale, by definition, the i-buyer either made a mistake, or the event is to be used for marketing purposes.

 

[ScoopKona]

If you net more from an i-buyer than you would have gotten from a well executed traditional sale, by definition, the i-buyer either made a mistake, or the event is to be used for marketing purposes.

... or they're offering above list because that's how to close a bunch of sales, fast.

 

[Time2]

... or they're offering above list because that's how to close a bunch of sales, fast.

They make up for overpaying by buying in bulk?



I'm with sengsational on this, I don't see how they can pay more than market price and stay healthy. I think there will be a housing correction and these companies may get bit.

 

[38Chevy454]

I agree the only way the opendoor or similar can survive paying over market prices is if the market is rising. In essence their philosophy is they didn't pay too much, they just bought too early. Time (price appreciation) will make up the short term over market purchase.

What is interesting is that they are not buying fixer-uppers to just flip the properties. It seems they are becoming large corporate landlords where they are looking at it more as longer term rental investments as opposed to short term flipping for quick profits. If they can sustain higher rents, then the ROI may be good enough for the short term and add in price appreciation in the long term.

 

[badatmath]

My neighbor sold to Open Door a few years ago and got the same as another neighbor who did it the old fashioned way. Old fashioned way took 3 months though. I can't say as to the fees, I just checked the sale price as I thought I might try them. And at that time, they sold it to someone who is actually quite nice and it is not a rental.

 

[ScoopKona]

What is interesting is that they are not buying fixer-uppers to just flip the properties. It seems they are becoming large corporate landlords where they are looking at it more as longer term rental investments as opposed to short term flipping for quick profits. If they can sustain higher rents, then the ROI may be good enough for the short term and add in price appreciation in the long term.

They're going to get the depreciation tax breaks, the value of the house (which their crew of builders and painters will improve* ), rent for X years, and then they'll sell it at the height of the next housing bubble. "Buying every house they can in what they consider hot housing/rental markets" is just the first step of the plan. When I was buying rental properties in 2010, I put in two or three offers every day, a little over list, to see which ones would get accepted. They're just doing what I was doing, cranked to 11.


*The term "lipstick on a pig" comes to mind.

 

[kgtest]

In terms of car I buys.. I got quotes from Carvana, Carmax and the Stealership. Kelly blue book had them at the bottom of their range so I listed it for 40% over what the i buyer and Stealership offered and sold it for 20% more on Facebook marketplace. I probably could have held out for more but was able to sell it within 24hrs above the median that KBBs range was so I was happy.

 

[Sunset]

Zillow was doing this, and got bit by it.

 

[retire202052]

If you net more from an i-buyer than you would have gotten from a well executed traditional sale, by definition, the i-buyer either made a mistake, or the event is to be used for marketing purposes.

I'll never know what I could have gotten in a "well executed traditional sale" ..(not even sure what that is). But I do know that I had a number that I wanted in my pocket......and they hit it right on......I've never been one to hedge bets or be greedy....and I'm not going to start now.

The convenience factor was just an extra bonus.

 

[Aerides]

Convenience definitely counts, and since you want to stay put for a bit, even more in your case.

My neighbor across the street...their realtor spent 2 days here taking pics, brought out his friend with a drone, etc.

House sold in 1 day. None of the prep mattered - they weren't emptying the house for weeks in advance or anything. They could have put up a handful of iphone pics on zillow.

It's all about neighborhood and availability right now.

 

[Time2]

I just saw a new wrinkle in a TV commercial. This company will buy your house and then rent it back to you. You get to spend all the equity you built up, and stay in your home. Now what could be better?
I can't pull the company name from my memory, arrgh!