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.”