It’s probably no surprise that clients often ask me about using Opendoor. It can sound like a dream, right? Here’s an easy way to receive an offer to purchase your home without having to go through the hassle of listing with a Realtor.
I was referred to a couple who needed to sell their house and move into a 55+ community. This was going to allow them to age in place better and have access to services that were difficult for them to obtain in their home.
Things had to move fast with this homeowner. They needed to sell their home quickly in order to obtain certain benefits that centered around their new living situation. They had received a postcard from Opendoor prior to meeting with me.
The homeowners were very upfront with me from the beginning telling me they received something from Opendoor in the mail. They gladly handed me the information and told me they had a call with them.
The price Opendoor was willing to pay well over what the homeowners were going to get if they had listed on the MLS with me. Except, that isn’t exactly how it all goes down for the homeowner.
At first glance, and phone call, this all seems like a great deal. Opendoor is going to give you a great price on your home – sight unseen – and you’ll get your money quickly and move out.
So where is the catch?
It comes in the repairs and fee’s. Opendoor will then send someone to your house so they can actually see it. From there, they will typically hit a homeowner with tens of thousands of dollars in repairs needed.
So that offer that looked really good, well, now it doesn’t look as great. We’re talking about $40,000 off the price they told you for “repairs”.
But that’s not all!
After that has been agreed upon, you’ll then get hit with a bunch of “fees” that will bring your equity down even further.
Now, remember all of those “repairs” that Opendoor said they need to make to your house? Guess what? They never made them. Now, to be fair, in some cases some repairs are made. However, in most cases the company pays for new paint and then turns around and lists the same property for a lot more than they paid for it.
In the case of the homeowners I met, it actually made sense for them to have Opendoor purchase the home – even with all of the deductions and fees. In this one instance, they still would have received more money from Opendoor than a Buyer found on the MLS. Of course, Opendoor has lost a lot of money purchasing homes above their Average Retail Value. So, if these homeowners could take advantage of some poor decisions, then why not?
As a homeowner, perhaps you were able to sell the house quickly, but at what cost? Purchasing a house is typically the largest financial transaction you’ll make in your lifetime. The equity you build from owning your home for so long is hard-earned money. Not only did you provide for your family, but you also were able to build a little money from that situation.
I’m saying, it’s a lot of money – do you want to get it wrong?
It may sound appealing to sell quickly, but after having to drop your pants to do it?
At the end of the day, it is a free country and you can choose to do what you feel is best for yourself and your family. I’d only remind you of one thing – if it sounds too good to be true, then it probably is!
