I don’t usually sell stories about my clients, but today I’ve got one that I believe you might be able to learn from.
Recently, our team met someone who was in the middle of transitioning between homes. They had already gone under contract with the home they were buying next but had yet to sell their current home. This person was very invested in making sure their deal worked out, but they weren’t sure they should try to list on the open market. So, they decided to look into selling their home for cash to the instant offer company Opendoor.
If you haven’t already heard of this company, allow me to explain: Opendoor is an instant offer (or iBuyer) company that purchases homes for cash with the promise of a supposedly convenient experience. Then, they turn around and sell the property on the open market for a profit. What they don’t advertise, though, is that they pay sellers far less money than they could earn on the open market. With that in mind, let’s get back to our story.
Opendoor offered this seller $297,000 for their home. After 6% to 7.5% fees Opendoor charges, however, the seller would have wound up with approximately $280,000, instead.
The seller was rightfully skeptical of this deal, so they decided to turn to us. When they did, we worked fast to get their home market-ready and were able to list it in just three days. Then, less than 24 hours after it went live, we received five different offers. Better still, all of these offers came in above our asking price: $315,000. When all was said and done, the home went under contract for $322,500. We were able to get the seller over $20,000 more than they could have earned by working with Opendoor, while still helping them to close on time.
The bottom line is this: If you have ever considered working with an instant offer company like Opendoor, remember to check out your other options first. The story I just told you is a perfect illustration of why the deals these companies offer you aren’t usually as good as they seem. In most cases, you’ll be far more successful working with an experienced real estate professional to sell your home on the open market.
If you have any other questions or would like more information, feel free to give me or my team a call or send us an email. I look forward to hearing from you soon.