Opendoor makes selling real estate easier. The Californian startup will make you an offer on your house, helping you to finalise the transaction in record time, and will also take care of the rest of the process.
In the United States, residential property stays on average on the market for more than three months before being sold. In fact the real estate sector “is known for its slow, inefficient sales processes,” points out Erica Domm, Operations Manager at Opendoor.
However, underlines Erica Domm, most people need to sell their existing home before being able to buy another house and ‟obtaining a loan for what is for many people the biggest deal they’ll ever make in their lives is no easy matter! There are so many unknowns: how much will you be able to borrow, when will you get the money from your house sale? And so on.” Moreover, adds the Opendoor Operations Manager, while you can turn to a car price guide to obtain a fairly accurate estimate of the sales value of your vehicle, based on standard, objective criteria, things are much more complicated when it comes to selling a piece of real estate: “There are no standards or any objective authority that will enable people to establish a fair price for their home.”
Analysing market data to estimate house prices
In a market where lots of companies target their services at people looking to buy real estate, Opendoor has hit on a novel approach, switching the customer focus to home-owners who want to sell their property. The San Francisco startup has set out to make the process of selling real estate easier and – most importantly – quicker. Opendoor claims that it is able to conclude an agreement with the vendor in three days on average and release the proceeds of the sale (i.e. sale price minus fees) immediately if necessary, depending on the vendor’s needs. Taking the information on the property supplied by the owner and using specially-developed software to compare that with market data, Opendoor is usually able to make a purchase offer within 24 hours. If the owners accept the offer, one of the team will go over to the property with a certified real estate inspector to carry out an inspection of the house and check that it complies with the details specified in the contract. Once this has been done, all the vendors have to do is decide when they wish to vacate the property and close the deal – with a maximum deadline of two months from the sale date – and the company will take care of everything else. Opendoor guarantees the offer price to the vendor, who can then go on to the Opendoor website and see how the process is progressing.
Fast, customised service creating a first-rate user experience
Real estate industry news and technology information provider Inman named Opendoor ‘Most innovative real estate company of the year’ at the Inman Innovator Awards 2015. The startup has already bought and sold over 200 properties and recently raised $80 million in capital, following two earlier rounds of financing totalling $30 million. These new funds are intended to finance the company’s expansion beyond its main offices in Phoenix, Arizona; Dallas, Texas; and Portland, Oregon. The company is following the trend towards disrupting traditional real estate business models in similar vein to AgentPair, a Costa Mesa, California-based company that has developed an app for scheduling real-estate viewing appointments, while shaping up closer to the on-demand economy, whose hallmarks are service immediacy and a streamlined, customised user experience.