Today, I want to talk about two companies, Opendoor and Offerpad, that are a hot topic of conversation in the world of real estate technology at the moment.
What these companies do is very similar to the process of wholesaling, to some degree. Basically, they seek to buy properties directly from sellers in order to turn them around for a profit.
Opendoor and Offerpad have billions backing them through venture capital out of San Francisco, Philadelphia, Wall Street, and elsewhere.
Usually, people find these companies through advertisements. They then go onto a website to determine their home value, only to then receive an offer.
The offers given by these companies are typically around market value. However, their fees tend to equal up to 9% or 10% off of the offer while a typical agent’s commission fees will generally equal 6%, with that amount being split between the buying and listing side.
Although, there is a level of convenience to how quickly you can close with these companies. Usually, closing in those situations will take just three or four days. You also wouldn’t have to worry about a loan contingency, since the offer is cash. But there still is an inspection contingency.
Because they never visited your house prior to making an offer, the inspection usually will uncover something they didn’t expect. Therefore, this contingency often results in the company trying to lower the price even further. This could be hundreds or even thousands below what you were originally expecting.
The point I want to get across is that my team and I are basically a miniature version of these companies. If someone wants to sell their homes quickly, directly, and with no hassle, we have cash investors available. Just be aware that like any business or investor, these people are trying to make a profit.
If you can afford to spend a little extra time, it is always preferable to list on the open market. You’re going to net much more money selling your home with us this way.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.