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  • Writer's pictureJesse Ledbetter

Should I sell my home to Opendoor?

Like other I(stant)Buyers in 2020-2023, Opendoor struggled to turn a profit despite soaring home values. Their models consistently failed to provide accurate modeling and resulted in losses. This baffles anyone in real estate who watched home values explode year over year.

In the last year 19 homes were sold by "Opendoor Property Trust," confirmed to be affiliated with, and it would appear, they're gambling again.

Assuming that Opendoor is paying nothing to list their homes (they obviously will have reduced in-house costs, but not $0), paying nothing to repair or improve the homes (they usually do put some level of repair or updating), paying no concessions (they typically do), and have no carrying costs (ie. real estate taxes, utilities, HOA fees, etc) their most recent trend is racing towards loses.

Additionally, their pending sales and active listings have slightly abnormal marketing times for the region, indicating that sales prices may be lower than their current list prices (with on list price being below their acquisition cost).

It appears that Opendoor is currently targeting a profit of 10% above their purchase price, but that may be ambitious.

So, should you sell to Opendoor... well their algorithm is struggling to find the "right price" to buy at, so you might find yourself with an offer at/near the market value of your home - but understand, they are trying to make money off of your lack of knowledge. They don't want to pay you what your home is worth, as that means less profit for them. So, my recommendation would be to get an agent to provide a CMA on your home, or hire an appraiser to perform a desktop appraisal (where we value the home without a site visit, using only tax records and photos you provide) in order to give you peace of mind that you're not being ripped off.

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