When Selling: Is Opendoor Good or Too Good to Be True?
When something sounds good, we want to know more. That’s what happened when I heard about Opendoor. I have seen the same advertisements that you have. They will buy your house for cash, you save yourself so much time and you can close almost immediately. My team motto is that we take the stress out of the home sale and home purchase process. So naturally, I was curious. I did some more research and I asked a few people who had personal experiences. So what did I find? Is Opendoor good or too good to be true?
Let’s take the good first:
- Simply put your address into their website and Opendoor will send you an offer on your home within about 24 hours.
- Their offer is cash.
- You don’t have clean your house for showings.
- You don’t have to do any repairs.
- You do it yourself – no Realtors involved.
- You can close typically within 10-60 days.
Sounds good, right? Let’s see if it’s too good to be true.
The rest of the story:
- Their offer is most often below market value.
- They do their own inspection of the property and take the cost of any necessary repairs out of your proceeds.
- They charge 6-13% of purchase price for fees.
- You don’t have anyone looking out for your best interest.
What do you think? When I read these facts, along with personal experiences of known individuals and online reviews, I think there are some real positives if you fit into a specific category:
- If you need a guaranteed FAST sale/closing.
- If you are willing to take less than market value.
- If you DO NOT want to show your house to perspective Buyers.
- If you DO NOT want competitive offers.
- If you DO NOT want to have to do any repairs.
- If you DO NOT see the value of a Realtor.
You may fall into one of these categories and that’s OK. Opendoor may be a perfect solution for you. Let’s look at the other side.
With a traditional sale, using a Realtor, you are likely get offers for a much higher price than an Opendoor offer and possibly even higher than market value in some markets. This can offset any Realtor fees (and remember, Opendoor charges 6-13%). The offers could be cash. If the Buyer is getting financing, part of the Realtor’s job is to manage the process and make sure the financing is going through smoothly. In certain markets, it only takes one day of showings to sell your house. If you live in this kind of market, you will probably get a higher sale price and shouldn’t sell yourself short, in my opinion. As a listing agent, a Realtor’s job is to get you the highest sales price possible, in the least amount of time, with the least amount of concessions. They negotiate on your behalf. When it comes time to do any agreed upon repairs, your Realtor will not only negotiate what needs to be done, but may even be able to convince the Buyer to do them after closing for a small concession, thus alleviating the need for you to do any repairs at all. Some closings can be quick, even when there is a lender involved. This is another reason using a Realtor can be beneficial. Most Realtors have relationships with lenders who can get the job done in two weeks or less.
So, you be the judge. Is Opendoor good or too good to be true?
Michelle Froedge is a residential Realtor and Principal Broker in the Greater Nashville and Williamson County areas of Tennessee. “Mom” to four-legged fur baby, Tyler, Auntie to Zelamie, she is a vegetarian and sings in her spare time. Michelle has lived in Nashville and Franklin since 1997 and has been selling homes since 2004.