8 ms·

It is a nuance. Opendoor: Targets sellers that want to sell quickly without any hassle. Flippers: Targets sellers that want to sell quickly without any hassle

It is a nuance. Opendoor: Targets sellers that want to sell quickly without any hassle. Flippers: Targets sellers that want to sell quickly without any hassle. Some of them are distressed. Some of them are just in a hurry. There really is no real distinction. How they make money is clearly laid out on their website. They buy for low, sell for higher than the bought. I believe they also cut out realtors.

amorphid 10y ago
There's inherently wrong with wanting to sell quickly. If grandma died, leaving me her house 3,000 miles away from where I live, the last thing I'd want to be saddled with is trying to sell it. I know nothing about selling (or owning) a house, the real estate market in that area, etc. A fair enough price ASAP is what I'd be looking for.
- brianwawok 10y ago
  Why not make one call to a local agent and have it sold for 5% more money? I'm all for paying $2 for convenience if coffee on the run. Not sure I would pay $20k to save a few hours work around selling a house.
  - deleted 10y ago
    [deleted]
  - BadCookie 10y ago
    Agents are not free! Around where I live, you can expect to pay 3% to each of the two agents involved. Selling the house for 5% more doesn't help you if you have to give 6% of the sales price to the agents. I wonder how much of what Opendoor is trying to achieve involves removing or reducing the agent involvement.
    - brianwawok 10y ago
      I never said they were free. If getting an agent on your own cost 5%-6%, and opendoor is charging 12%... you are losing 6-7% by using opendoor. That is a LOT of money.
  - deleted 10y ago
    [deleted]
  - psadri 10y ago
    Also, real estate agents are just as incentivized to sell the property as quickly as possible. Selling a property at say $1M in one week (3k commission) > 1.05M in three weeks (only $150 more for two more weeks of work). I wish real estate agents commissions where tiered. 1% for selling at market rate but 10% for anything over the market.
- amorphid 10y ago
  Correction... "There's nothing inherently wrong..."

amorphid 10y ago

There's inherently wrong with wanting to sell quickly. If grandma died, leaving me her house 3,000 miles away from where I live, the last thing I'd want to be saddled with is trying to sell it. I know nothing about selling (or owning) a house, the real estate market in that area, etc. A fair enough price ASAP is what I'd be looking for.

brianwawok 10y ago
Why not make one call to a local agent and have it sold for 5% more money? I'm all for paying $2 for convenience if coffee on the run. Not sure I would pay $20k to save a few hours work around selling a house.
- deleted 10y ago
  [deleted]
- BadCookie 10y ago
  Agents are not free! Around where I live, you can expect to pay 3% to each of the two agents involved. Selling the house for 5% more doesn't help you if you have to give 6% of the sales price to the agents. I wonder how much of what Opendoor is trying to achieve involves removing or reducing the agent involvement.
  - brianwawok 10y ago
    I never said they were free. If getting an agent on your own cost 5%-6%, and opendoor is charging 12%... you are losing 6-7% by using opendoor. That is a LOT of money.
- deleted 10y ago
  [deleted]
- psadri 10y ago
  Also, real estate agents are just as incentivized to sell the property as quickly as possible. Selling a property at say $1M in one week (3k commission) > 1.05M in three weeks (only $150 more for two more weeks of work). I wish real estate agents commissions where tiered. 1% for selling at market rate but 10% for anything over the market.
amorphid 10y ago
Correction... "There's nothing inherently wrong..."