In the video below, a Las Vegas realtor compares an actual offer from Opendoor to what happened when he put the home on the open market.
But it’s the deceit that is note-worthy.
The first number supplied by Opendoor was the average market time, which they said was 75 days for the zip code. But the actual MLS data showed 22 days, and then the agent sold this house the first day on the market.
Opendoor also packed an extra 2% in costs for seller concessions when selling with a realtor, which is untrue. Buyers don’t ask for concessions in our pricer market, let alone in Las Vegas when houses are selling over list price.
No surprise that flippers use the lowest comps they can find – that’s expected. But they also stack enough other false evidence that, in the end, is what sways the seller to go that route.
Opendoor’s final estimate twisted the numbers to show that the seller would make $11,000 more money by selling to Opendoor, rather than listing with an agent. But the client actually cleared $15,416 more with a realtor!
Flippers have no obligation to tell you the truth – they say whatever they want. Get a second opinion! If timing is an issue (quick closings are one of the big benefits they push) – then I will give you a quote today, and get you into escrow as fast as you need.
Link to video:
https://www.facebook.com/gafford2/videos/10155312061946750/
My math:
$330,000 Sales price
-$23,100 Commission, title, and escrow fees (7%)
$306,900 Actual net proceeds
$291,484 Net proceeds selling to Opendoor
+$15,416 More money selling with agent
Opendoor quoted $280,564 as the net proceeds selling with a realtor, which is $26,336 below actual!
The entire industry is a mess, and has been forever. Maybe this is just a process to get to competence, value and transparency. Or maybe it’s just more slime in the pond.
90% of consumers don’t have a big-piece-of-chocolate-cake Jim The Realtor experience, they have a **** sandwich experience.
True to all you say. But.
Once Opendoor, Offerpad, Zillow and Redfin are operating in a market, why wouldn’t a seller get offers from each as a starting point? Sets a floor. Keeps a seller getting swindled by the more “traditional” swindler agents that double-end off-market deals to folks in their office.
I know your outrage is equal to the new swindlers and the traditional swindlers alike. But these new guys are just doing what the old guys have always done.
But these new guys are just doing what the old guys have always done.
Agreed, but once they go corporate big-time and are operating with Wall Street VC millions, the outrage goes up a notch.
The entire industry is a mess, and has been forever. Maybe this is just a process to get to competence, value and transparency. Or maybe it’s just more slime in the pond.
The slime is growing, so it might be a long process.
Or it could be over in weeks/months if anybody would mass-advertise an ethical solution as the alternative. Or if Amazon or Google did it, the market could change in a matter of days.
Thanks Booty Juice!
Resurrecting an old post that seems to have rung true… 60 million in FTC fines later…. Just took 4 years…