Like nearly all industries, the real estate industry is being transformed by technology. There’s no question about it. ‘Opendoor’ is a startup out of San Francisco that expedites the selling process. They buy homes from sellers in just a matter of days after approval and then flip them quickly for a profit. If you’re a seller, you do little to no work!
Seems like an amazing way to avoid a daunting selling process… Right?
The problem is, this ‘quick fix’ attracts many home sellers to take the bait- without knowing the true value of their home. They potentially miss out on tens of thousands of dollars they could’ve collected by simply spending a little more time to find the right buyer. They are like every house flipper out there. They use algorithms to offer you a price that will get THEM maximum profit.
Another often overlooked policy… When Opendoor agrees to buy your home, they let you decide whether you would like to pay for repairs or just let them do the repairs themselves. Either way, you end up paying for repairs. That’s not so bad, but the problem is THEY decide what needs to be repaired. Another important (and often overlooked) part of the Opendoor policy is that they reserve the right to redo pricing negotiations after the inspection of the home. So what happened to the easy, stress-free experience?
Opendoor markets themselves as a way for home-sellers to avoid expensive transaction costs when they really should be marketing themselves as an opportunity for homeowners to cut and run. If you’re looking to get rid of your home as quickly as possible, maybe this is the option for you! However, it is likely you’re not getting even close to full price.
Getting a second opinion pays dividends. Opendoor offers aren’t something real estate agents should try and hide from our clients. In fact, their offer might be exactly what we’re looking for! But the fact is, selling a home is a complicated transaction that EVERYONE should take their time with. Technology has changed real estate in a lot of ways, but it seems the ‘real-life’ real estate agent is here to stay.
In the end, most people aren’t willing to give up control of one of the most important sales of their life just to save a little bit of time. Take time to consider your options before taking the easy way out. It will pay off in the end.