Inside iBuyers: Opendoor Opens Up On Their Process

Is iBuyer technology wreaking havoc on the market? In our recent report we analyzed iBuyers and how they affect the single-family market. It’s no secret that disruptors like iBuyers are causing lingering apprehension about over-inflated home values, opportunity costs, and transaction difficulties.

But what about the sellers that flock to iBuyers for the ease of use and simple transaction? To find out we sat down with representatives with Opendoor, one of the nation’s leading iBuyer brands, to learn they’re perspective on the issue.

Silicon Startup With Texas Roots

Opendoor prides itself on pioneering the iBuyer space. Headquartered in San Francisco, this app-based homebuying service operates in 44 markets across the country. Dallas was the second market they launched in February of 2015.

Locally, Opendoor holds the keys to over 500 homes in the Dallas-Fort Worth area, making this area one of their largest markets. And with great investments, come great responsibilities.

Methods to the Madness

Drew Kayes, senior market manager for Opendoor, is extremely proud of how his company operates during these unprecedented times.

“All we want to do is make it easier for people to buy and sell a house,” says Drew. “The move here is to create an easy space for people to manage one of the largest transactions of their lives.”

Opendoor does this by providing tools for buying, selling, and financing homes effortlessly and efficiently. Of course, this may seem intuitive enough, but what about the concerns we mentioned earlier? With so much hinging on technology, can they really pin accurate assessments on every home? And how does that affect the market at large?

“In terms of our algorithm and our pricing model,” says Drew. “It’s the most robust in the industry. We pioneered and created it and we’ve been building that data set for eight years. It pulls data points from tax records, recent sales, and all that kind of stuff. Do we miss? Sure, sometimes we miss, but sometimes agents miss as well.”

The Agent Issue

Speaking of real estate agents, Opendoor has an open-door policy when it comes to working with them.

“One thing we really want Realtors to understand,” said Drew, “is that we’re a tool for Realtors to add to their arsenal. Most people that sell to us, there’s a Realtor involved in the transaction and we pay commissions just like anyone would.”

A Consumer Perspective

Andrea Rodgers wanted to put her home on the market in March. After browsing the web for iBuyer opportunities, she came upon Opendoor.

“It was quick and easy,” Rodgers said. “Opendoor connected me with an experience partner and we worked together through the month of March.”

After a virtual tour and exterior inspection, Opendoor wrote her an offer she couldn’t refuse.

“It was actually a great experience,” says Andrea.

Your Thoughts

As with any new technology, there are going to be pros and cons. But iBuying is still in its infancy and doesn’t appear to be going anywhere. Are you concerned about the fallout for Realtors? For consumers? Tell us in the comments.