OpenDoor, Mark Spain, etc. (sale, settlement, housing, price)
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I know many agents who HATE showing Open Door homes. So many of houses have been "updated" like lipstick on a pig. (One I looked at had some numbskull paint the family room and didn't worry about the overspray on the floor or wood built-in shelving. Looked like a 3 year old had gotten hold of a can of spray paint.)
Open Door is often attractive to people who are having to move due to sudden circumstances (divorce, death of a spouse, etc.) or are just too overwhelmed to get a house ready for market. (Clutter, etc.). They know the house has not been maintained well, and don't want to get into spitting contests with buyers demanding repairs. A home seller would be wise to interview other companies, too, and compare apples to apples.
We decided to sell our home with Open Door. The house was at an age, 15 years, where we were facing big expenses for HVAC replacement ($30K), painting ($12K),and a realtor would expect us to refresh the bathrooms and kitchen (another $5-10K + time) before we could list it to show.
With OD we avoided all that and closed on our schedule in less than a month. No showings, no open houses, just vacate and broom-sweep. All of the paperwork was handled online. We did talk with a realtor and of course he claimed that we could list it for more than OD cash price. The way I see it, we bought the house for 3 potatoes, the realtor said he could sell it for seven potatoes, but OD’s offer of six potatoes was an easy decision given the uncertainties of the housing market and the current economy.
Will Open Door survive using their current business mode? I couldn’t care less, they may be idiots and fail bigly, but they bought our house and saved us a lot of time and hassles.
We decided to sell our home with Open Door. The house was at an age, 15 years, where we were facing big expenses for HVAC replacement ($30K), painting ($12K),and a realtor would expect us to refresh the bathrooms and kitchen (another $5-10K + time) before we could list it to show.
With OD we avoided all that and closed on our schedule in less than a month. No showings, no open houses, just vacate and broom-sweep. All of the paperwork was handled online. We did talk with a realtor and of course he claimed that we could list it for more than OD cash price. The way I see it, we bought the house for 3 potatoes, the realtor said he could sell it for seven potatoes, but OD’s offer of six potatoes was an easy decision given the uncertainties of the housing market and the current economy.
Will Open Door survive using their current business mode? I couldn’t care less, they may be idiots and fail bigly, but they bought our house and saved us a lot of time and hassles.
30k for HVAC? That joker must be gold plated. Also, I'm not sure why there is a misconception all of a sudden that you have to do repairs and updates to list a home with an agent. You don't. It's just a matter of whether you what you want to do basedon ROI. Also, the home was 15 years old. How bad could the the kitchens and bathrooms really be?
Are these investors promulgating the idea that you can't sell a dated house "as-is" with an agent?
A friend's daughter was looking for a rental and was sent to an OpenDoor listing by a scammer.
She thought it was odd that she had to punch in a code and there was no one there to show her around, but said the place looked like a rental -- slap dash paint job, vinyl plank floors, and cheap carpet. She said they had painted the kitchen cabinets but hadn't bothered to take off the hardware, just painted around.
We decided to sell our home with Open Door. The house was at an age, 15 years, where we were facing big expenses for HVAC replacement ($30K), painting ($12K),and a realtor would expect us to refresh the bathrooms and kitchen (another $5-10K + time) before we could list it to show.
With OD we avoided all that and closed on our schedule in less than a month. No showings, no open houses, just vacate and broom-sweep. All of the paperwork was handled online. We did talk with a realtor and of course he claimed that we could list it for more than OD cash price. The way I see it, we bought the house for 3 potatoes, the realtor said he could sell it for seven potatoes, but OD’s offer of six potatoes was an easy decision given the uncertainties of the housing market and the current economy.
Will Open Door survive using their current business mode? I couldn’t care less, they may be idiots and fail bigly, but they bought our house and saved us a lot of time and hassles.
Not sure about the HVAC replacement, that seems high and an unnecessary unless it breaks down before closing.
$12K for painting sounds about right and generally worth doing. But who cares what a realtor expects in terms of updating kitchens and bathrooms.
The big bonus is that you get to load up and go. No fussing around for months.
30k for HVAC? That joker must be gold plated. Also, I'm not sure why there is a misconception all of a sudden that you have to do repairs and updates to list a home with an agent. You don't. It's just a matter of whether you what you want to do basedon ROI. Also, the home was 15 years old. How bad could the the kitchens and bathrooms really be?
Are these investors promulgating the idea that you can't sell a dated house "as-is" with an agent?
Our house had two rooftop gas pack units, the $30k was on the lower end of four quotes. The RE agents are competing with new construction, so buyers expect updated bathroom fixtures and finishes. One agent told us that dated will eventually sell, but it has to look perfect.
We decided our time was worth more than an extra 10-15%.
Open door has three properties in a nearby neighborhood, all of which they bought after the peak around August/September of last year.
Two of the three are listing less than or near the price that OpenDoor paid for the properties. One is now listing at the OpenDoor acquisition price, and amazingly, has a "perpetual" open house - it's been open from 9-5 every day for the last 3-4 weeks.
I don't see how they made or will make any money on any of these properties.
I don't see how they made or will make any money on any of these properties.
RM
Well, they must be doing something right since their stock is at $1.20 a share after hitting about $35 a year ago at it's high.
Just kidding.
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