IIRC, you'd still pay some 'commission' fee, but it was to opendoor itself. It was listed in their offer breakdowns, just downplayed a bit. Yeah, perhaps it's 'only' 3%, but then buffering in another 4% for maintenance updates on the house brings it to 7% (for example). Some of that you might get in traditional sales anyway - sale contingent on seller fixing floors/windows/etc.
I got 3 offers from opendoor over about an 18 period. We were on the fence about moving, and explored opendoor and Zillow house buying, to save us some hassle. The offers were easy to see that they were lower than 'market'. Part of what you're paying for is convenience and timing. Is it worth it to me to 'lose' $10k off what I might make in the 'open market' if it means I know for sure the house will be sold on a certain date? IIRC, also, one of those companies offered some discount on their fees if you were buying another one of their houses in their portfolio.
What I did see in our area (slightly rural area) was a year or so of buyers like opendoor coming in with offers fairly low, then flipping and reselling, and making that spread, but fairly quickly. A $300k house they might have picked up for $270k then flipped 2-3 months later for $340k.
>> A $300k house they might have picked up for $270k then flipped 2-3 months later for $340k.
Even this may or may not be fair. If the flipper did tens of thousands in repairs, perhaps the extra price is now justified? Any idea of the homes were flipped as-is or after value-add updates?
I got 3 offers from opendoor over about an 18 period. We were on the fence about moving, and explored opendoor and Zillow house buying, to save us some hassle. The offers were easy to see that they were lower than 'market'. Part of what you're paying for is convenience and timing. Is it worth it to me to 'lose' $10k off what I might make in the 'open market' if it means I know for sure the house will be sold on a certain date? IIRC, also, one of those companies offered some discount on their fees if you were buying another one of their houses in their portfolio.
What I did see in our area (slightly rural area) was a year or so of buyers like opendoor coming in with offers fairly low, then flipping and reselling, and making that spread, but fairly quickly. A $300k house they might have picked up for $270k then flipped 2-3 months later for $340k.