Las Vegas Homeowners Use Opendoor to Trade Up Their New Homes
The homebuying process on either side of the table can often be tedious and time-consuming, which is exactly what Opendoor plans to change. Founded in 2014, Opendoor is a homebuying marketplace that uses computer algorithms to analyze worth and make offers to consumers. It’s a startup that allows homeowners to trade up their homes much like they would a car. The company launched in a handful of cities across the U.S., but it most recently launched in Las Vegas, where Opendoor partnered with Lennar to offer buyers the opportunity to sell their home and move into a property within weeks.
“Trading in a car is second nature to Americans, but no one thinks about that relative to a home,” Jon Jaffe, chief operating officer of Miami-based Lennar told Bloomberg. “What we’ve found is that the customers love it. It’s something that they didn’t think about as a possibility because it didn’t exist before.”
The homes that sellers move into also come with Lennar’s Everything Included package. On these homes, sellers get a 30-day satisfaction guarantee, which means if a consumer doesn’t like the new home, Lennar and Opendoor will buy it back.
In markets like Las Vegas, Opendoor partners with developers to give homeowners another shot at a new home. Here’s how it works: On Opendoor, consumers enter the address along with some basic information about the home. Within 48 hours, the startup gives the consumer an offer based on both market analysis and specific elements of the home. Similar to the traditional selling process, a home inspection quickly follows to reinforce the value of the home. Sellers are expected to move out of the home within 10 to 60 days, depending on what they agree on with the startup.
Keep in mind: Opendoor only buys certain types of homes. To qualify, homes in the Las Vegas and Henderson markets have to be valued below $500,000. Sellers also have to pay a 6.5 percent fee on the transaction instead of traditional service fees along with an additional 1 percent to 1.5 percent in additional fees. However, Lennar does give homeowners $2,000 to move.
These fees may seem excessive, but the upside of using Opendoor is that consumers no longer have to deal with the uncertainty of not only finding a buyer but also going through the negotiation process. In some cases, the offer from the startup may not be as competitive, but for those looking to sell their home quickly and get into a new home, the service may be appealing. Buyers who have difficulty selling their homes but choose to move into a new property anyway will no longer have to maintain two properties while trying to sell one of them.
Opendoor also eliminates the frustration of showing the home to potential buyers. Because sellers receive an offer without having to show the home, they don’t have to worry about having buyers stop by the property at inconvenient times. Sellers who would typically hire a stager to bring out the elegance of the home will also save money.
Opendoor has received mixed reviews from consumers, but for the most part, it receives high marks for the unique service they offer.
But still, should you sell your house to a startup like Opendoor? It depends on what you’re looking for in a home sale, but some think it may streamline the process.