Author Topic: opendoor and similar offers  (Read 1446 times)

FrugalZony

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opendoor and similar offers
« on: June 16, 2015, 08:03:04 PM »
Does anyone here have any experience selling to opendoor.com

My house has been on the market for a while and although we are priced below the last appraisal we are not getting offers.
My realtor's pricing strategy has been abysmal. I wanted to list lower than he suggested, but went with his professional opinion, only to loose way to much time.
We had to do several price drops and it feels like reverse world. I am always the one initiating drops and he is trying to dig in his heels.

Whereas I appreciate him trying to get me more money, I feel he is just loosing my time.

Recently I have received several letters from buy homes for cash buyers.
I checked out opendoor.com for kicks and the offer is low, but would be a good backup option
in case we do not have any success anytime soom.

I perceived some of the other letters as scammers, but am coming around to the idea to give them a try.

Wondering if anyone had any experience with any of these services.
Any insight? Red flags?

Thanks in advance!

Another Reader

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Re: opendoor and similar offers
« Reply #1 on: June 16, 2015, 08:57:06 PM »
Fire that agent and get one in his place that knows how to sell houses.  Loyalty is not working here.

Another Reader

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Re: opendoor and similar offers
« Reply #2 on: June 17, 2015, 07:29:42 AM »
Read up on their website yesterday.  They also charge a 5.5 percent commission.  They are looking for subdivision product that are easy flips.  Nothing before 1960.

An example in Goodyear that's currently on the market.  They bought a 1,600 sf house built in 2004 for appx $136k per the tax records.  The seller paid a 5.5 percent commission.  Net was $136,000 x 0.945 = $128,520.  Per the listing and the pictures, they did new exterior and exterior paint, nice HGTV-look tile in the kitchen and baths, and a new vanity in the hall bath.  Laminate in the kitchen but a tile surround.  My guess is they spent $10-$12k per the pictures.

The house is listed for $165k.  That's about $10k over the competition, which is not as nice.  The neighborhood appeals to first time buyers, with a lot of FHA loans.  It will be a tough appraisal and they would have to give concessions.  I don't see how they would make any money off this deal.

Update:  They actually bought this house off the MLS and paid $136,059.  It was listed for $148k in March, they closed in mid April.  Took them around 45 days to turn it.  Some of the work was done, so I think they spent less than $10k.  The only reason I can think they did that was to get their feet wet with flips and to have some product inventory.  Or maybe because they are tech start-up investors, they are used to losing money at first.  Because they are going to lose money on this one.
« Last Edit: June 17, 2015, 07:55:49 AM by Another Reader »

FrugalZony

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Re: opendoor and similar offers
« Reply #3 on: June 22, 2015, 03:59:05 PM »
Thanks for your feedback AR!
I did contact them and they have a bunch of ther fees on top of the 5.5, but at least it gives you some sort of bottom line
price in case you really need to sell quickly, which I don't!

It was interesting to see and now I'll delist in early July and will talk to a bunch of other realtors before relisting ;)