Many people are a little put off by the prospect of trying to live a normal life in a house that’s listed to sell. Opendoor’s advertising makes it look like you’ll actually make more selling to them, but what they are really selling is convenience. Let’s look at what really happens in the San Antonio market.
Opendoor are not in the business of stockpiling single-family homes on their balance sheet; they are counting on a quick turnover. That means they need to buy cheaply enough to make a profit when they immediately put the property up for sale. This quote from a March 2018 article in Inman (a real estate industry e-mag) helps make my point: “On March 17, Opendoor was trying to sell its Las Vegas listings for an average of 6.13 percent more than it bought them for.”
The average purchase price in San Antonio is 8% below market value.
It actually costs more to sell with Opendoor.
You pay from 6.5% to 12% in “service fees” with Opendoor, and in San Antonio, that service fee is 8.8%.
But it doesn’t end there. A seller also agrees to pay for repair costs when they contract with Opendoor. These repair costs are, on average, significantly more and can’t be negotiated away as they can when you have an agent working on your behalf.
Opendoor is not using their money. Here is how it works out for San Antonio:
Opendoor’s website uses an average of 10 showings which computes to a loss of $2,080 per showing. The price of convenience is pretty steep!
By hiring a professional REALTOR® like me, you’ve got all my negotiating experience and marketing experience working for you. Let me get you the best deal for your property and in the quickest time!
*Service charge varies by market. San Antonio is seeing steady appreciation but not the ballooning values that allow Opendoor to charge the lower service fees they do in other parts of the country.