Real Estate Report

(Oct. 19, 2018) Online companies continue to change and challenge the traditional real estate business model.

Two of the newest names are Opendoor and Offerpad. These companies are competitors, but they both operate under the model of making “selling a home” convenient and hassle free.

They allow sellers to request a fair and competitive offer, all at the click of a button—yes, all online.

Sellers can fill out information online within minutes and receive offers on their home within 24 hours or sooner. Opendoor advertises that their benefits to a seller include:

• Close in just a few days at a competitive price

• No listing, showings, staging

• Transparent fees and pricing

• They’ll handle all repairs and deduct the costs

Costs associated to use Opendoor are a service charge to help cover the costs of holding and reselling your home. These include property taxes, insurance, maintenance, utilities and marketing.

Sellers would also have to pay any other settlement/closing costs that are customary for a seller to pay in any given market.

Both Opendoor and Offerpad have expanded quickly in the past few years.

Offerpad currently operates in Phoenix, Las Vegas, Tampa, Orlando, Atlanta and Salt Lake City, with other markets opening soon. And, Opendoor operates in all of the same aforementioned markets but additionally in Minneapolis-St. Paul, Raleigh, Nashville, Dallas-Fort Worth, San Antonio, Houston and more recently in Sacramento and Riverside.

Slightly different, but along the same lines of this new online trend is Zillow’s “Zillow Offers.” This is a home selling option that allows sellers to request a cash offer from Zillow by answering some questions online, and Zillow then responds with a cash offer within a few days.

If the seller decides to move forward, a home inspection is scheduled and the seller is connected with one of Zillow’s licensed real estate agents. Currently Zillow is testing this new service in Atlanta, Phoenix and Las Vegas.

– Lauren Bunting is an Associate Broker with Bunting Realty, Inc. in Berlin.

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