TLDR; He sold on open door (OD) in 2 weeks. OD takes a %, just like a RE does. OD took 108! days to sell the property for a price above what it bought it for, but the difference was negligible considering the time, stress, holding costs (utilities, taxes, interest) saved.
Thanks for your video. It was a good balanced report. I like that you looked at the overall experience as it affected you. You pointed out that there's more to it than just the money. Time and effort are drivers, too. For example, all the time and effort you would have to put in just in open house tours. That right there is a big pain in the ass.
Thanks for the info! Im a Dallas realtor doing research for a video Open door vs real estate agents so people will really know the difference. I do think iBuyers have a place especially for people that need to sell fast or just don't want to deal with the selling process, they could really help the right people that need them. But for the sellers that want to really get the full amount that their house is worth open door isn't worth paying them 5% plus the extra fees for them to buy your house with an already low offer. You end up paying the same amount you would be paying if you use a realtor but at a discounted offer since they have to profit when they turn around and resell it. Open door is just another real estate investment company flipping houses plus charging the sellers fees, nothing special other than the fact that they just look pretty and they're convenient. iBuyers are like selling to a pawn shop instead of the people that actually dictate market value to begin with, the real people buying homes.
Thanks for the video. I'm waiting to hear from them on the final offer. The initial offer looked very impressive so we'll see how much lower.. Or they even back out.
@@EdwardInTX they just called today, saying they won't be purchasing in my area. Such a waste of time. They should have said so before doing the in person assessment. Back to square one.
Awesome tips and video.. I am having a virtual walkthrough today. Thank for your tips. I believe it’ll be easier and faster for me to sell my house to open door.
Alot of presumption in the comment section. It's almost as if people think realtors are magic. Sometimes houses dont sell fast even if you had a "good" realtor. Maybe he would have made more money, maybe not. Folks on here talking about 24 hour turnaround for an good offer, stop it. If his house and area was in demand like that it would have sold much much sooner.
So in a nutshell, the ibuyer option like Opendoor might be worth it... IF YOU LIVE IN A BUYER'S MARKET. I.e. a $175K house in good condition here in Charlotte, NC would easily go under contract in a day, so you would have pocketed that $10K plus if you went the conventional route.
It just depends on what is in the offer. If your offer didn't include a big number on the "repair" amount, then I think it is ok because later on the title company will send you a 1099-S form with a "gross proceed" amount. This gross proceed number is before all the fees and the repair amount. According to the IRS rules, you can deduct all the fees that include the "service charge" too; but not the "repair" amount unless the repair is improvement. For example: If the offer includes $35,000 repair amount, then uncle Sam will ask for the tax on that repair amount later on. Just think of it, Opendoor takes that money; then you have to pay tax on that. That is a big NO NO NO.
Only had you waited till now...You might have gotten another 60 - 80K on the house. Spring 2021 is the seller's dream...with house prices going up 15% in matter of months here in Southern California.
All these negative comments seem unwarranted. He had a house that was not worth too much (160-180). He did not have much equity in the home. The house needed repairs including a roof. He walked away with 30 K in his pocket after 15 days and very little time invested. He had enough to buy another house with a decent downpayment and maybe even let his wife get some new furniture. Winner winner, chicken dinner. Conversely, he could have taken all the time and money to repair his house (20 or20k+) and taken all the time and money to sell the house. Paid all those fees, sold his house for 170K, and made the exact same money or less. I don't see where Open Door was making any big profit and it looks like they are the ones who barely broke even.
FYI ALL--The $5k number in the video was because I was considering all my monthly payments over my time in the house. My actual cash after closing came out to $32,499. "But Edward, I still want to go through a realtor"--If you need a realtor recommendation, I recommend Tiffany Theodore in Dallas (DFW) Texas area. Her email is tiffanytheodorecheng@gmail.com
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Another plus is that you did not have to show the house. The 14 day close is great if you have to move quickly.
I think Open Door will skyrocket as a stock when all the foreclosures come into play the next two years because of Covid. People will have a chance to save their credit and maybe get some equity. This will be a good option for the people who need to sell fast.
Hey! So did their preliminary offer up front differ much from what you closed at? They're wanting my home for 311k. Everyone else is saying anywhere from 286-290k. It's eerily high but timing them a try
How much lower than the market price , did they offer u . I guess if time is a priority, they can work . I would want , full value for my house . Good to know to k ow that the whole process take 14-17 days . Thxs
Hey man, I'm about to sell my house to open doors. Thanks for the tips. Please let me know if you have any other tips. I doing my first video walk through on Wednesday.
@@sardinah70 more likely open door will be bankrupt. If they can't make money in a housing bull market how will they survive a bear market when it comes?
Not a sponsorship. I believe it was about 1-2k more after showing them the video. I don't remember the details anymore as this sale was almost 2 years ago.
@Man Lee It's a seller's market due to low inventory. Try listing through redfin if you can (1% + 3% buyer's realtor). If you list through opendoor, it's about 6% but quicker to close.
Curious why you sold...house wouldn’t be cash flow positive to keep as a rental? Feel like we are at a top of RE Market environment? Hope you are well!
Not sure but he brokeven meaning he still had almost the same balance on the mortgage, even if the bank has the house as collateral won't banks cap what they are willing to lend out to people? I thought debt limit was typically 3x your annual earnings or something.
I'm looking to sell my mother's home. It's in poor shape and we're not interested in doing the repairs ourselves because we live out of state. The house is in Tampa which is hot right now. We got several offers from flippers and they were fair considering the condition of the house. OpenDoor offered about $30k more, AFTER THEIR INSPECTION and their repair costs which were about a third of what the flippers said they needed to do. It includes some estimated closing fees. We're skeptical because it's so much higher. I'm concerned they will try to add more repair fees later in the process. Can you truly cancel the contract anytime along the way with no cancellation fees? Your thoughts please?
Thx for getting back to me. Just curious, were you in a hurry to sell? I'm an agent in San Antonio. I wonder if you would've got the same or similar offer from opendoor or other competitor's after trying to list it for more and net more through an agent for three months. Wouldn't have cost you anything if the listing agreement was for 3 months and expired if you weren't able to get offers at list price. Imo I think some agents and buyers avoid seeing opendoor listings for many different reasons. I believe in leaving no stone unturned. Thx again for sharing your experience.
Yes, and the houses in the area sold after 40 days which is not the time frame I was looking for. I looked at comps with a realtor and decided I was ok with taking a small hit here.
Appreciate your honesty and getting back to me. I've heard of houses closing in 21 days with financing but the quickest I've had one close in is 35 days with financing. That is total time it took from when it went under contract. Unfortunately title companies and lenders do slow down the process as well as getting inspections, estimates and negotiating repairs. So as long as seller's are happy I'm cool with that if they sell to investors when they need to. Most re agents I've run into want to assist sellers in netting the most money and do everything they can to do so in the shortest amount of time. I think that is the way it should be but I do understand getting houses sold quickly and paying for that convenience is pretty attractive. I won't lie it does bother me to think that some people are possibly being shortchanged in such a strong market.
@@chrisrambos I completely agree, but some times I do question the motivation of realtors selling to "investors". It is especially difficult when you don't know exactly how to price your home and the comps are all over the place because this person improved this and that person improved that, etc! I'm just finishing redoing my condo and I am dreading the hassle. I am inclined to try to do it on my own!
Thanks for the video - very helpful. Have you checked with other iBuyers like Zillow and try to make them compete for your house? What was the total amount you paid in fees as a % of your home value? Thanks so much for taking the time to reply.
@@EdwardInTX - you are awesome - thanks for the quick response. I hate having to stage the home, leave for hours every time there is a showing (I work from home office) do all kinds of repairs the buyers might want. Thanks again!
@@josesugapapirivera1632 I ultimately changed my closing date mid process and moved out before it. Opendoor does allow "late checkout" help.opendoor.com/hc/en-us/articles/360032576212-Can-I-stay-in-my-home-after-my-close-date-
I enjoyed your video Edward. I need your advice if you don't mind. I got an offer from ooendoor yesterday on my small house. The offer was$147,400 and I owe $95,000. I bought the house for $98,000 3 years ago and it had been renovated at that time. After watching your video and all the fees and repair charges OD charges. I'm afraid I'd end up with nothing at all. They would take every bit of my money from the sale with their fees. Do you think in my case I'd be better off not selling with them? Thanks.
It took 108 days because open door does not have the resources a good Realtor has and because of their mark up. I'm in Vegas and my average from start to closing on the house is 38 days when the buyer is financing and 22 days when the buyer is paying cash.
It took 15 days for them to get me out of the house, which was faster than another realtor who tried. I just followed the resale out of curiosity after Opendoor took it over, and it took that long for them to sell it. I know one of their buyers backed out, and of course they don't have resources to facilitate in pushing the resale.
FULL Disclosure, I'm a Realtor. Just so that I understand, you approximately sold your home for 170k. You paid "Open Door Fee" of 9.3k plus other charges... which equates to about 5.5%+ commission if a realtor had sold it. You opted out from selling your home in a free market, you opted out from having a representation, you paid more than the average commission... Im just trying to figure out how this was a good deal for you?... just wanted to see how it actually helped you before I go out there and buy some opendoor stocks..... seriously...
@@JosephDietz I noticed a lot of realtors across the internet disparage Opendoor or Redfin for their iBuying business. It's certainly not a perfect transaction, but it gives the seller or buyer a possibility of convenience or an extra option compared to a realtor who in which will jerk you around while wearing a suit and tie. People can still go to a realtor to sell. That means Opendoor is on to something that traditional realtors feel threatened by or do not understand.
@@uca7681 Wealthy people hire real estate lawyers and sell their house themselves, usually to their network of friends. This seems like an obvious gap in the market. Realtors days are numbered, but I don't know how many years they have left.
Do a comparison between rental comps, your timeline, and ability of buyers to pay market vs appraisal. I don't have a house to sell right now, but opendoor came in significantly lower than comps, and buyers have capacity to buy in my area. I'd probably go realtor this time around.
Some people value convenience. You would have never known what would happen within that 108 days--the realtor could fall through, a buyer decides to renegotiate and low-ball, huge delays, and etc. It's giving the seller or buyer (or customer) agency in a real estate transaction, especially when the stakes are high. Realtors aren't gonna disappear like many realtors or salespeople fearfully project---they just have to compete with iBuyers for market share. It's another tool for customers to use.
@@Jeajea433 Just as you stated, it is part of the loan. When you pay that payment every month to the mortgage, principal is 10% paid and interest is the other 90%. The longer you own the house, the more that balances out and you pay more in principal than interest. That's why it seems like your loan balance doesn't really drop at the beginning of owning a house. I just factored it as part of my calculation.
I think it depends on the situation and market. Sure I'd make more money, but at the expense of continued upkeep and interest payments during the holding period. Money is not a concern when the houses in the neighborhood sold by realtors are all sitting around.
@@EdwardInTX I am not sure when you sold your house, but i would assume from the time you made the video. The average house on market based on where open door buys, it's less than a month for sure. I really hope you make an update video on how open door left behind many seller and fired many of their staff during the pandemic! Thank you wish you best of luck in your videos !
Hi there. You indicated that your loan balance was about 120k and Opendoor offered you approximately 170k. That's a 50k difference and you stated that you broke even? Were all cumulative fees you paid to Opendoor 50k? I'm trying to understand. Would you kindly clarify? Oh and please don't account for your escrow refund which I know comes later. Thanks for the video and info btw
170k - 120k (loan) - 9k (opendoor) - 5k (roof replacement) - 2k closing costs - 2k repairs - 20k (loan interest charges since 80% house payment goes to interest in the beginning of any mortgage, not principal) - taxes because i didn't meet the "2 of 5 year" requirement for not getting taxed.
How much total did Open Door charge you for repairs after the inspection? I see a roof replacement charge and a repair charge so that confused me a bit.
Here’s a sale breakdown I put in another comment 170k sale - 120k (loan) - 9k (opendoor) - 5k (roof replacement) - 2k closing costs - 2k repairs - 20k (loan interest charges since 80% house payment goes to interest in the beginning of any mortgage, not principal) - taxes because i didn't meet the "2 of 5 year" requirement for not getting taxed.
I listed my house in Charlotte for $420K, as coming soon, not yet active. On day 2, my realtor said we got an offer from Open Door for $465K. That's $45K above asking.... and honestly we/realtor believe my house in our neighborhood would top out around $435-$440K Is it for real or they kill you with fees?
Your ignorant... you gave them thousands of dollars of equity on your home. If I were you I wouldn't be calling this a positive experience, I would be embarrassed.
Houses in that area sit on the market for a while because no appraiser will go that high. Buyers in that price range don't have the money to come out of pocket more. Look at the whole situation.
I love how you said that your home would have taken 108 days to sell your home unless you used a good REALTOR....A good REALTOR would have marketed your home better...you wouldn't have paid all those fees and you would have had a lot more money in your pocket ultimately. The REALTOR would have been looking out for you and would have done all the paperwork and follow up to make sure that Escrow would have done what they did. Not you... Not to mention...the buyer would have paid a lot of the costs that ultimately you paid. So you wanted 170....but you got??? what??? 120??? plus you paid for repairs...doc fees...escrow fees and follow-up...doesn't sound like you have any money really after that experience...Isn't this your largest asset? Just saying..Oh...and did you find yourself another place to live? Are you owning or renting?
Thanks for the bias. I did work with 3 different REALTORS. I did get the comps in the area, and I know the area well. Different REALTORS selling different homes took 60 days to sell houses in the neighborhood. A REALTOR is not a guarantee nor a universal answer. I know you're a REALTOR, and I appreciate you taking a jab at my points and twisting it. You definitely did not understand the points. A good realtor cannot prevent a buyer's finances from falling through. This is not my largest asset either. A REALTOR is not the answer to everything.
TLDR; He sold on open door (OD) in 2 weeks. OD takes a %, just like a RE does. OD took 108! days to sell the property for a price above what it bought it for, but the difference was negligible considering the time, stress, holding costs (utilities, taxes, interest) saved.
Thanks for your video. It was a good balanced report. I like that you looked at the overall experience as it affected you. You pointed out that there's more to it than just the money. Time and effort are drivers, too. For example, all the time and effort you would have to put in just in open house tours. That right there is a big pain in the ass.
Thanks for the feedback! Absolutely, looking back I would do the same thing again. Time matters to me!
Thanks for the info! Im a Dallas realtor doing research for a video Open door vs real estate agents so people will really know the difference. I do think iBuyers have a place especially for people that need to sell fast or just don't want to deal with the selling process, they could really help the right people that need them. But for the sellers that want to really get the full amount that their house is worth open door isn't worth paying them 5% plus the extra fees for them to buy your house with an already low offer. You end up paying the same amount you would be paying if you use a realtor but at a discounted offer since they have to profit when they turn around and resell it. Open door is just another real estate investment company flipping houses plus charging the sellers fees, nothing special other than the fact that they just look pretty and they're convenient. iBuyers are like selling to a pawn shop instead of the people that actually dictate market value to begin with, the real people buying homes.
Thanks for the video. I'm waiting to hear from them on the final offer. The initial offer looked very impressive so we'll see how much lower.. Or they even back out.
hope it goes well!
@@EdwardInTX they just called today, saying they won't be purchasing in my area. Such a waste of time. They should have said so before doing the in person assessment. Back to square one.
@@cheerry777 I thought they do everything online, no in-person visits
I think you did a great job 👏, no drama with escrow that didn,t, close,etc
Very thorough! Great info, I’m going into real estate and investing. Super helpful!
Awesome tips and video.. I am having a virtual walkthrough today. Thank for your tips. I believe it’ll be easier and faster for me to sell my house to open door.
How did it go ?
Alot of presumption in the comment section. It's almost as if people think realtors are magic. Sometimes houses dont sell fast even if you had a "good" realtor. Maybe he would have made more money, maybe not. Folks on here talking about 24 hour turnaround for an good offer, stop it. If his house and area was in demand like that it would have sold much much sooner.
Yup this is what I mean!
I really appreciate your detailed analysis and sharing of information. I found this video very helpful both as a REALTOR® and a private investor.
Thank you very much!
So in a nutshell, the ibuyer option like Opendoor might be worth it... IF YOU LIVE IN A BUYER'S MARKET. I.e. a $175K house in good condition here in Charlotte, NC would easily go under contract in a day, so you would have pocketed that $10K plus if you went the conventional route.
Correct.
It just depends on what is in the offer. If your offer didn't include a big number on the "repair" amount, then I think it is ok because later on the title company will send you a 1099-S form with a "gross proceed" amount. This gross proceed number is before all the fees and the repair amount. According to the IRS rules, you can deduct all the fees that include the "service charge" too; but not the "repair" amount unless the repair is improvement. For example: If the offer includes $35,000 repair amount, then uncle Sam will ask for the tax on that repair amount later on. Just think of it, Opendoor takes that money; then you have to pay tax on that. That is a big NO NO NO.
Repair cost is part of expenses. You can deduct that from your gross sales.
@@cheerry777 I got mixed answer from the experts.
Only had you waited till now...You might have gotten another 60 - 80K on the house. Spring 2021 is the seller's dream...with house prices going up 15% in matter of months here in Southern California.
I would say fall 😁😁😁
This spring was the highest its starting to go down now, so time to bounce
All these negative comments seem unwarranted. He had a house that was not worth too much (160-180). He did not have much equity in the home. The house needed repairs including a roof. He walked away with 30 K in his pocket after 15 days and very little time invested. He had enough to buy another house with a decent downpayment and maybe even let his wife get some new furniture. Winner winner, chicken dinner. Conversely, he could have taken all the time and money to repair his house (20 or20k+) and taken all the time and money to sell the house. Paid all those fees, sold his house for 170K, and made the exact same money or less. I don't see where Open Door was making any big profit and it looks like they are the ones who barely broke even.
Thanks for sharing your experience!
FYI ALL--The $5k number in the video was because I was considering all my monthly payments over my time in the house. My actual cash after closing came out to $32,499.
"But Edward, I still want to go through a realtor"--If you need a realtor recommendation, I recommend Tiffany Theodore in Dallas (DFW) Texas area. Her email is tiffanytheodorecheng@gmail.com
Another plus is that you did not have to show the house. The 14 day close is great if you have to move quickly.
That’s very true!
I think Open Door will skyrocket as a stock when all the foreclosures come into play the next two years because of Covid. People will have a chance to save their credit and maybe get some equity. This will be a good option for the people who need to sell fast.
There won’t be that many foreclosures people over thinking it
Thanks for sharing!
Sold my home with Opendoor - I was impressed with the professionalism.
Hey! So did their preliminary offer up front differ much from what you closed at? They're wanting my home for 311k. Everyone else is saying anywhere from 286-290k. It's eerily high but timing them a try
How much lower than the market price , did they offer u . I guess if time is a priority, they can work . I would want , full value for my house . Good to know to k ow that the whole process take 14-17 days . Thxs
Hey man, I'm about to sell my house to open doors. Thanks for the tips. Please let me know if you have any other tips. I doing my first video walk through on Wednesday.
How did the video walkthrough go? I have one sched soon. Did yoh like the initial offer and did the final offer come way down?
@@jordanpeele5306 I wanna hear your experience when you get a chance
How did it go?
What a good video! Valuable information for investor.
Those dilikes must be from realtors 😂😂
Literally 100% of them yes
Yes realtors should be obsolete soon, and that’s a benefit 😀
@@sardinah70 more likely open door will be bankrupt. If they can't make money in a housing bull market how will they survive a bear market when it comes?
🤣, so true...
🤣🤣 for real.
That 400 hundred fee. Was it paid out of pocket or was it taken out with the fees
What type of fees did you have to pay to Open Door? And how much did you pay in total fees for them to buy your home?
Thanks for sharing this info! Was very insightful.
Thanks for the video!!! This is really helpful.
Awesome!
It’s not a sponcership? Plus, how much more did you get than the initial offer. Full disclosure, PLEASE!!!
Not a sponsorship. I believe it was about 1-2k more after showing them the video. I don't remember the details anymore as this sale was almost 2 years ago.
@Man Lee It's a seller's market due to low inventory. Try listing through redfin if you can (1% + 3% buyer's realtor). If you list through opendoor, it's about 6% but quicker to close.
THANKS FOR YOUR HONESTY
Thanks for the video ！Do you know can I selling my house to Opendoor in Minnesota ？
So, they paid you money at the closing day at attorny office? in form of check or wire transfer?
Yes, it was a wire
Curious why you sold...house wouldn’t be cash flow positive to keep as a rental? Feel like we are at a top of RE Market environment? Hope you are well!
Not sure but he brokeven meaning he still had almost the same balance on the mortgage, even if the bank has the house as collateral won't banks cap what they are willing to lend out to people? I thought debt limit was typically 3x your annual earnings or something.
Hello, it is now 3 years since you uploaded this video.... would you still recommend Open Door?
If they're giving you a good price, yes I would.
I'm looking to sell my mother's home. It's in poor shape and we're not interested in doing the repairs ourselves because we live out of state. The house is in Tampa which is hot right now. We got several offers from flippers and they were fair considering the condition of the house. OpenDoor offered about $30k more, AFTER THEIR INSPECTION and their repair costs which were about a third of what the flippers said they needed to do. It includes some estimated closing fees. We're skeptical because it's so much higher. I'm concerned they will try to add more repair fees later in the process. Can you truly cancel the contract anytime along the way with no cancellation fees? Your thoughts please?
Yeah--we had a chance to walk away after they came up with their inspection and repair items. Not sure if they changed between then and now though.
@Karen - did you end up going with Opendoor? Any additional feedback would be appreciated.
did you sell it?
You didn't pay taxes and insurance?
Did they do any repair prior to relisting your house.
barely any, just recharge freon lol
@@EdwardInTX I see... It's totally worth it in your case. They didn't made much, 5% from your side. Probably anot $10k from reselling.
Thx for the video. Did you get comps from a local expert. If you did how much lower was opendoors offer before all the fees?
Yes I did. It was about 7% lower
Thx for getting back to me. Just curious, were you in a hurry to sell? I'm an agent in San Antonio. I wonder if you would've got the same or similar offer from opendoor or other competitor's after trying to list it for more and net more through an agent for three months. Wouldn't have cost you anything if the listing agreement was for 3 months and expired if you weren't able to get offers at list price. Imo I think some agents and buyers avoid seeing opendoor listings for many different reasons. I believe in leaving no stone unturned. Thx again for sharing your experience.
Yes, and the houses in the area sold after 40 days which is not the time frame I was looking for. I looked at comps with a realtor and decided I was ok with taking a small hit here.
Appreciate your honesty and getting back to me. I've heard of houses closing in 21 days with financing but the quickest I've had one close in is 35 days with financing. That is total time it took from when it went under contract. Unfortunately title companies and lenders do slow down the process as well as getting inspections, estimates and negotiating repairs. So as long as seller's are happy I'm cool with that if they sell to investors when they need to. Most re agents I've run into want to assist sellers in netting the most money and do everything they can to do so in the shortest amount of time. I think that is the way it should be but I do understand getting houses sold quickly and paying for that convenience is pretty attractive. I won't lie it does bother me to think that some people are possibly being shortchanged in such a strong market.
@@chrisrambos I completely agree, but some times I do question the motivation of realtors selling to "investors". It is especially difficult when you don't know exactly how to price your home and the comps are all over the place because this person improved this and that person improved that, etc! I'm just finishing redoing my condo and I am dreading the hassle. I am inclined to try to do it on my own!
Thanks for doing this! See Opendoor is going public through a reverse merger (IPOA)? Thoughts?
First thought is you should know is that it is IPOB...the letter is B.
Thanks for the video - very helpful. Have you checked with other iBuyers like Zillow and try to make them compete for your house? What was the total amount you paid in fees as a % of your home value? Thanks so much for taking the time to reply.
Those services weren't available at the time. I tried Orchard, and they charged more and offered a bit less.
@@EdwardInTX - you are awesome - thanks for the quick response. I hate having to stage the home, leave for hours every time there is a showing (I work from home office) do all kinds of repairs the buyers might want. Thanks again!
@@Gheorghe99 Absolutely, same here! Best of luck with your sale.
How long did you live in your house before you sold it .
How many days they gave you to move out after closing?
They were flexible on move out within 30 days (may need to fact check this with your agent)
@@EdwardInTX That's good so you closed out got paid and moved later? That's cool!!!
@@josesugapapirivera1632 I ultimately changed my closing date mid process and moved out before it. Opendoor does allow "late checkout" help.opendoor.com/hc/en-us/articles/360032576212-Can-I-stay-in-my-home-after-my-close-date-
Very insightful. Thank you!
I enjoyed your video Edward. I need your advice if you don't mind. I got an offer from ooendoor yesterday on my small house. The offer was$147,400 and I owe $95,000. I bought the house for $98,000 3 years ago and it had been renovated at that time. After watching your video and all the fees and repair charges OD charges. I'm afraid I'd end up with nothing at all. They would take every bit of my money from the sale with their fees. Do you think in my case I'd be better off not selling with them? Thanks.
They are transparent with how much you'll actually get back. Ask them for the closing disclosure. I was about net $32k after all fees and loan payoff.
Bro, you should have bought two years later. Even with a local realtor, you should be able to get 10% more than asking price
Thanks for that. Interesting
At what day did you have to move out, in your timeline?
Yup, my timeline!
Excellent breakdown, thank you.
Is wholesale! Are they paying you....
It took 108 days because open door does not have the resources a good Realtor has and because of their mark up. I'm in Vegas and my average from start to closing on the house is 38 days when the buyer is financing and 22 days when the buyer is paying cash.
It took 15 days for them to get me out of the house, which was faster than another realtor who tried. I just followed the resale out of curiosity after Opendoor took it over, and it took that long for them to sell it. I know one of their buyers backed out, and of course they don't have resources to facilitate in pushing the resale.
Cyberslug1 Ya, if you have an ACTUAL realtor, they are pushing that thing, where as opendoor takes a nonchalant approach to it I’m sure . . .
看好这种模式的，体验为王，为用户节省时间就是价值
what does the closing forms look like you said something about a tax form ?
Standard HUD estimate showing cash from buyer to seller
@@EdwardInTX is there anyway i can see the doc online anywhere ? and thanks
and if you bought the $OPEN Open Door stock at $10.50 ( $IPOB ) today its about $27/sh
Did you have to do the repairs or did they do they repairs after you moved out
They did it after I moved out
FULL Disclosure, I'm a Realtor. Just so that I understand, you approximately sold your home for 170k. You paid "Open Door Fee" of 9.3k plus other charges... which equates to about 5.5%+ commission if a realtor had sold it. You opted out from selling your home in a free market, you opted out from having a representation, you paid more than the average commission... Im just trying to figure out how this was a good deal for you?... just wanted to see how it actually helped you before I go out there and buy some opendoor stocks..... seriously...
he explained it was a fast turn-around
@@JosephDietz I noticed a lot of realtors across the internet disparage Opendoor or Redfin for their iBuying business. It's certainly not a perfect transaction, but it gives the seller or buyer a possibility of convenience or an extra option compared to a realtor who in which will jerk you around while wearing a suit and tie. People can still go to a realtor to sell. That means Opendoor is on to something that traditional realtors feel threatened by or do not understand.
@@uca7681 Wealthy people hire real estate lawyers and sell their house themselves, usually to their network of friends. This seems like an obvious gap in the market. Realtors days are numbered, but I don't know how many years they have left.
Good to know. TY. I may check into that
Awesome! Yeah, it's free to do an offer and you don't have to sign. They'll show you how much you'd pay and all.
Thoughts now?
Do a comparison between rental comps, your timeline, and ability of buyers to pay market vs appraisal. I don't have a house to sell right now, but opendoor came in significantly lower than comps, and buyers have capacity to buy in my area. I'd probably go realtor this time around.
@@EdwardInTX thank you for that.
@@nickquik yw
Is there any obligation to accept their offer to get the initial quote?
No
Will opendoor buy my house without a clear title?
Was that AC repair the only repair they charged you for?
Yes
It sounds like their edge is the carrying cost
Thanks for sharing
Thanks for watching!
I LOVE OPENDOOR!!!!!
Sounds like you paid 1-1.5 fee to open door but selling with a realtor you would pay 6-7% and most realtors have a junk transaction fee
Absolutely!
Did they give you enough time to pack you household goods and move?
Yes. Remember you can set your closing date.
Great video.
I'm sorry but he basically paid $11,900 to close 3 weeks earlier than what he would've had he used a traditional realtor.
Some people value convenience. You would have never known what would happen within that 108 days--the realtor could fall through, a buyer decides to renegotiate and low-ball, huge delays, and etc. It's giving the seller or buyer (or customer) agency in a real estate transaction, especially when the stakes are high. Realtors aren't gonna disappear like many realtors or salespeople fearfully project---they just have to compete with iBuyers for market share. It's another tool for customers to use.
You mentioned 20k loan interest charges...i don't understand. Isn't that already part of the mortgage each month?
Yes
@@EdwardInTX so can you please explain the additional 20k charge?
@@Jeajea433 Just as you stated, it is part of the loan. When you pay that payment every month to the mortgage, principal is 10% paid and interest is the other 90%. The longer you own the house, the more that balances out and you pay more in principal than interest. That's why it seems like your loan balance doesn't really drop at the beginning of owning a house. I just factored it as part of my calculation.
@@EdwardInTX Adding 20K confused me because its not an additional charge. ...anyway, i dont get it
They bent you over. YOu broke even on the home? That isn't real estate my friend, you have to make money regardless
I see you didn't read the pinned comment. I made $32,499 after selling the house. Broke even, meaning technically I lived for free.
@@EdwardInTX good for you, they rape people and get away with it
I say YES to Open Door also, much quicker.
It seems like you only comment on people who recommend "open Door" ! If you had to go the conventional route, you would had made more money.
I think it depends on the situation and market. Sure I'd make more money, but at the expense of continued upkeep and interest payments during the holding period. Money is not a concern when the houses in the neighborhood sold by realtors are all sitting around.
@@EdwardInTX I am not sure when you sold your house, but i would assume from the time you made the video. The average house on market based on where open door buys, it's less than a month for sure.
I really hope you make an update video on how open door left behind many seller and fired many of their staff during the pandemic!
Thank you wish you best of luck in your videos !
so a realtor is not a normal person ?
Hi there. You indicated that your loan balance was about 120k and Opendoor offered you approximately 170k. That's a 50k difference and you stated that you broke even? Were all cumulative fees you paid to Opendoor 50k? I'm trying to understand. Would you kindly clarify? Oh and please don't account for your escrow refund which I know comes later. Thanks for the video and info btw
170k - 120k (loan) - 9k (opendoor) - 5k (roof replacement) - 2k closing costs - 2k repairs - 20k (loan interest charges since 80% house payment goes to interest in the beginning of any mortgage, not principal) - taxes because i didn't meet the "2 of 5 year" requirement for not getting taxed.
@@EdwardInTX So you paid close to 5.5% to OpenDoor for a 'service charge'. 9300+400.
Correct
@@EdwardInTX Thank you for the reply
How much total did Open Door charge you for repairs after the inspection? I see a roof replacement charge and a repair charge so that confused me a bit.
Wow what was the commissions did they charged u and how much Equity did you lose or did you get all the equity out
Here’s a sale breakdown I put in another comment
170k sale - 120k (loan) - 9k (opendoor) - 5k (roof replacement) - 2k closing costs - 2k repairs - 20k (loan interest charges since 80% house payment goes to interest in the beginning of any mortgage, not principal) - taxes because i didn't meet the "2 of 5 year" requirement for not getting taxed.
I listed my house in Charlotte for $420K, as coming soon, not yet active. On day 2, my realtor said we got an offer from Open Door for $465K. That's $45K above asking.... and honestly we/realtor believe my house in our neighborhood would top out around $435-$440K
Is it for real or they kill you with fees?
They'll try to get you in the fees and repairs, so look out for that. You can walk away if you don't like it.
this ibuyer stuff is worse than a broker fee
Breaking even you should’ve never sold the house rent it out… money in the bank
Thank for the info Edward! Your friend -SpaceCityJoey lol
Thanks buddy!
Open door always lowballs, and the fees are the same as going with a normal realtor, and 108 days on market is very rare.
It's all about convenience for the seller or buyer. Any company that provides a convenience for a customer always does well.
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9000 fee that’s terrible could have just hired a realtor
Realtors have a fee also its called a commission. The Opendoor fee is the same or less than a realtor commision.
lol you can tell he’s reading a script
yes i am
The point I’m making is that you reading a script makes this video bs no one comes here for a commercial they want a real opinion
it is a real opinion, like it or not. My presentation skills are just not as good as yours @@franklingee1267
@@EdwardInTX sure….real opinions always have scripts
with all these numbers and dates, absolutely @@franklingee1267
Your ignorant... you gave them thousands of dollars of equity on your home. If I were you I wouldn't be calling this a positive experience, I would be embarrassed.
Houses in that area sit on the market for a while because no appraiser will go that high. Buyers in that price range don't have the money to come out of pocket more. Look at the whole situation.
I love how you said that your home would have taken 108 days to sell your home unless you used a good REALTOR....A good REALTOR would have marketed your home better...you wouldn't have paid all those fees and you would have had a lot more money in your pocket ultimately. The REALTOR would have been looking out for you and would have done all the paperwork and follow up to make sure that Escrow would have done what they did. Not you... Not to mention...the buyer would have paid a lot of the costs that ultimately you paid. So you wanted 170....but you got??? what??? 120??? plus you paid for repairs...doc fees...escrow fees and follow-up...doesn't sound like you have any money really after that experience...Isn't this your largest asset? Just saying..Oh...and did you find yourself another place to live? Are you owning or renting?
Thanks for the bias. I did work with 3 different REALTORS. I did get the comps in the area, and I know the area well. Different REALTORS selling different homes took 60 days to sell houses in the neighborhood. A REALTOR is not a guarantee nor a universal answer. I know you're a REALTOR, and I appreciate you taking a jab at my points and twisting it. You definitely did not understand the points. A good realtor cannot prevent a buyer's finances from falling through. This is not my largest asset either. A REALTOR is not the answer to everything.
Very hard to find a decent realtor who does not want to make a quick sale at your expense.