Opendoor Review – NerdWallet

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    Opendoor, the largest iBuyer by volume in the United States, uses technology to help people buy and sell their homes for cash quickly.

    Founded in 2014, Opendoor introduced iBuying to the world with the purchase of its first home. In the second quarter of 2021, the company said it bought a record 8,494 homes.

    First launched in Phoenix, Opendoor now operates in 44 markets in 21 states including Florida, Texas, Nevada and North Carolina.

    What is Opendoor?

    Officially known as Opendoor Technologies Inc., the company offers a number of services that enable customers to quickly buy, sell, or “trade in” their homes, including:

    • Selling a house directly to Opendoor.

    • Advertise a house on Opendoor.

    • Buying a home from Opendoor.

    • Buying any house for sale (not just Opendoor).

    To streamline the home buying and selling process, Opendoor also offers these services:

    • Open home loans: helps clients finance a home purchase or refinance a mortgage; It offers no lender fees and a $ 1,000 incentive to close.

    • Opendoor cash-backed offers: Allows buyers to compete in hot housing markets by backing their offers with cash.

    • The Opendoor subsidiary OS National simplifies the closing process by providing fully digital title and fiduciary services.

    Opendoor locations

    As of October 2021, Opendoor will buy and sell homes in these 44 markets:

    • Arizona: Phoenix, Prescott, Tucson.

    • California: Los Angeles, Riverside, Sacramento, San Diego.

    • Colorado: Colorado Springs, Denver, Northern Colorado.

    • Florida: Jacksonville, Miami, Orlando, Tampa.

    • Minnesota: Minneapolis Saint Paul.

    • Missouri: Kansas City, St. Louis.

    • North Carolina: Asheville, Charlotte, Greensboro, Raleigh-Durham.

    • Ohio: Cleveland, Columbus.

    • South Carolina: Colombia, Greenville.

    • Texas: Austin, Corpus Christi, Dallas-Fort Worth, Houston, Killeen, San Antonio.

    • Tennessee: Chattanooga, Knoxville, Nashville.

    • Washington, DC (starting in the areas of Northern Virginia).

    How does Opendoor work?

    Opendoor enables homeowners to sell their home quickly without having to stage, list, or show it off. You also don’t have to worry about repairs yourself. Instead, Opendoor will determine what will meet your home needs and deduct that cost from the sales proceeds.

    Sell ​​your home to Opendoor

    1. Make a request for a quote: Get a quote by submitting your address and basic information about your home, including condition and properties, on opendoor.com. The process takes about 10 minutes and is free. Opendoor will then make a preliminary offer for your home through research comparable sales and evaluation of market data. You are not obliged to accept this offer.

    2. Arrange a house valuation: If you decide to move on, the next step is Opendoor’s free home valuation. In this step, Opendoor assesses the condition of the interior of your property. There are two options: a company representative can virtually complete the assessment with the homeowner via live video, or the homeowner can take photos and shoot a video with his camera or smartphone. The process takes about 10 minutes. Opendoor also sends an appraiser to evaluate the exterior of your home. Approximately 24 to 48 hours after these evaluations are made, Opendoor will make a final offer for the home. If you are not satisfied with the final evaluation results, you can cancel the deal at any time prior to closing with no penalty.

    3. Close to the house: If you do decide to sell, you can proceed at your own pace by choosing a close date that works for you. Typically, sellers can close in just 14 days or plan up to 60 days in the future. Before closing, you will need to upload information to an online dashboard to ensure that your home is in the same condition as it was when it was assessed. A few days after closing, you will then receive the proceeds from the sale of the house.

    What types of houses is Opendoor buying?

    Although it varies by market, Opendoor usually buys single family homes, Townhouses, Condos, and maisonettes, which generally range from $ 100,000 to $ 600,000. Depending on the location, this valuation can be as high as $ 1.4 million.

    Although there are exceptions in some markets, Opendoor does not typically buy homes built before 1930 or land with a lot size greater than 2 acres. Opendoor also doesn’t buy a cell phone or Prefabricated houses, Houses owned by banks or houses in floodplains.

    How to buy a home with Opendoor

    Opendoor enables home buyers to find, view or buy homes whether or not Opendoor owns them. Opendoor’s cash-backed deals also help buyers make cash-only deals on homes (which sellers may find more competitive).

    Buying a home from Opendoor

    When buying a home from Opendoor, you have the option of buying the house yourself from Opendoor or working with an Opendoor partner agent. You can also call your agent, who can make you the offer. If you go this route, all sales updates will be sent straight to your agent.

    To find homes on the Opendoor app or online, first search by city to browse listings, then select Tour for directions to the homes you want to visit. If you then decide to buy the house, you can submit an offer on the Opendoor website, through the app or by email. hand over [email protected]. Opendoor will review and respond to your offer within 24 to 48 hours; If accepted, you will be assigned a representative to assist you in completing the transaction.

    Buy any home on the market

    In certain cities, Opendoor also offers the option of buying any home for sale – even if it is not owned by Opendoor.

    After you have submitted an offer on the Opendoor website or in the app, you will be compared with an Opendoor partner agent who will review your offer and then submit it for you. If your offer is accepted, the sales contract will be drawn up and you and the seller must sign it. Finally, your Opendoor partner agent will help you through the escrow process and Closure of the house.

    Whether or not you buy from Opendoor, the company’s cash backed offering program can help buyers in specific locations buy a new home with cashone leg up in hot housing markets. Additionally, you don’t have to pay any additional fees to take advantage of the cash-backed offer, and it comes with no valuation, financing, or home sale Contingencies.

    Opendoor also offers a 90 day guarantee which allows you to return the home if you are not satisfied with your purchase (under certain circumstances). To qualify, the home must have been purchased with either an Opendoor agent or an Opendoor partner agent and meet special conditions.

    Trade in a home

    You can also use Opendoor to buy and sell a house at the same time (which Opendoor calls “trading in” your house). This gives sellers the flexibility not to pay two mortgages or move twice by choosing the closing dates at the same time. You can trade in to buy a home from Opendoor: a New house or any house for sale (depending on the market area).

    If the financing fails and you can’t close it on time, Opendoor can buy your new home to make sure no other buyer buys it. Additionally, when buying and selling a home with Opendoor under this trade-in program, you can also receive 1.25% of the current selling price of your home, with this incentive not exceeding $ 10,000 (but not if you rely on Opendoor to buy your new one At home).

    Sale to Opendoor

    If you want to sell direct to Opendoor, the company will charge a service fee of 5% of the selling price of your home to cover maintenance costs (but not repairs), as well as buying and later reselling the home. The company says this service fee could potentially be more or less dependent on the time Opendoor expects to sell your home in the future.

    After you have sold to Opendoor, you can use a “late checkout” option, which allows the owners to stay in the house for a maximum of 21 days after it has closed, as long as you leave a deposit and pay the daily price.

    Listing at Opendoor

    If you are sell your house, Opendoor can bring it to market for you too – even if you don’t want to sell directly. You will be connected to local professionals who will assist you in managing the entire process, including pricing your home.

    Opendoor’s commission is also 5% of the sale price of the home which covers the cost of listing it with a local real estate agent. This is lower than the 6% commission that is normally charged between the Listing agent and the agent of the buyer.

    Seller concessions, the cost that buyers can charge you to make sure the transaction goes through, can be up to around 2% of the purchase price of the home and are negotiated with the help of your Opendoor agent. After this inspection, the buyer can also ask you to perform repairs or give them credit for the cost of the repairs.

    And whether you are selling or buying a house, Closing costs – which are inevitable in any real estate deal – can represent up to 1% of the purchase price of the house.

    ” MORE: visit Open door for more details.

    How to get started with Opendoor

    To get started, visit the Opendoor website. Then enter your address and click the “Get my free quote” button. If Opendoor takes care of the area, you will receive a preliminary offer to buy your home within minutes.

    When looking to move forward with Opendoor, sellers typically close within 14 to 60 days.

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