opendoor

Courtesy Opendoor

Opendoor has made no secret that it wants to dominate the entire real estate industry. In fact, just last month founder Eric Wu told Inc. that he believes the five-year-old company will “build the largest marketplace of homes.”

And while the company is on pace to purchase $5 billion in homes this year, other companies are joining the fray — even the more “traditional” brokerages like Keller Williams offer it in select cities (including Dallas), and even locally, JP & Associates announced the launch of an iBuyer program for its agents this year.

The iBuyer may represent barely a percentage of the overall real estate ecosystem currently, but it’s clear that it’s disruptive enough to spur even bigger outfits like Realogy’s Coldwell Banker into getting their feet wet. 

But Wu told Inc. he had a plan, and it seems that as of 8 a.m. this morning, the rest of the world knows part of it — a new, all-in-one buyer service, which enables prospective buyers in DFW to browse, tour, and buy any MLS-listed home on the market through Opendoor. 

“If we can vertically integrate the category, rebuild every component from the ground up, automate a lot of the steps, and make it one click to buy, sell, or trade,” he told Kevin J. Ryan, “we believe that we will build the largest marketplace of homes. We’ll have eliminated all the friction. That may take 10, 20, 30 years.” (more…)

Founding team at Opendoor

Opendoor, Open Listings, open sesame to way more disruption in the real estate world.

You know about the fast growing, fast-expanding home selling and buying company Opendoor. Launched in the Bay area in 2014, with Dallas as its second focus group city, OpenDoor has raised $645 million in equity financing, has $1.75 billion in debt, and plans to be in 18 markets across the country by year’s end ostensibly to wipe that debt away.

Opendoor takes all that private equity dough and makes instant offers on homes, based on an automated valuation system that determines home prices online, nearly instantly. Homeowners receive a cash offer and can move without the drudgery of selling their homes: no staging, no showings, minor repairs taken out of the equity. The AVM offers are usually lower than what a seller could fetch with a traditional marketing, but they are quicker and time, says Opendoor, is money. Many customers say the Opendoor offer is exactly what they were hoping to sell for. might prefer to pay 6.5 percent or more to Opendoor versus 6% to two agents to unload a home quickly and move on. People choose Opendoor because it gives them convenience and certainty of an offer and price, which gives them confidence to buy their next home. Opendoor also works with a certain price point of home: originally under $600,000 in Dallas/Fort Worth when they launched here, the company is currently only buying properties valued at $300,000 or less in Dallas/Fort Worth (temporarily) because they have so many properties here: 522 on the market.

On Tuesday, September 11, Opendoor made its first acquisition: it bought Open Listings, a discount, technology-based online brokerage with ready-made, in-house real estate agents and partner agents. The Los Angeles-based company launched in San Francisco in 2015 with the slogan, “Shop without an agent. We’ve got your back”. Now in most of California plus Seattle, Chicago, Austin and here in Dallas, the company offers on demand showings with minimal agent interaction, and in-house agents:

“We have different teams of agents that are focused on making the buyer’s experience as smooth as possible at each step, whether it’s researching properties, tracking down answers to specific buyer questions, helping buyers get pre-approved, providing on-demand showings, or fully supporting them from offer negotiations to closing.” 

(more…)