A SavvyInterview – Opendoor

For most people, their home is their largest asset. Perhaps not coincidentally, it is also the most difficult to sell. The inability to sell your home when you’re ready to relocate, or downsize in preparation for retirement, can be frustrating. One company looking to disrupt the market and offer a different approach is Opendoor.

I recently spoke with the PR team at Opendoor, a 100-person startup based in San Francisco, to learn more.

Opendoor

[RetirementSavvy] Most readers are probably not familiar with Opendoor. Can you please give some background on the services provided and the history of the company?

[Opendoor] helps make the process of buying and selling homes as seamless as possible. We’ve been operating for 2 years and are live in Phoenix and Dallas.

[RS] How does Opendoor improve the selling and buying experience?

[Opendoor] For sellers, Opendoor offers a simple, instant sale online. Opendoor makes you a competitive offer on your home. You can sell on your schedule, closing as soon as 3 days or up to 60 days. There are no listings and no showings. You pick your close date, receive funds, and move into your new home the day you want.

For buyers, Opendoor offers on-demand home showings and a seamless purchase process.  Opendoor offers peace of mind and convenience through a better home buying process that includes 24/7 personal open houses,, a 30-day price guarantee and free, 2-year warranty from OneGuard.

Living Room - Joshua Ness

[RS] What are some of the key benefits of downsizing?

[Opendoor] Downsizing is appealing for a few key reasons. We’ve been hearing from a lot of people in Dallas and Phoenix that they are looking at moving into a condo.

The reasons to look at it seriously are three-fold. First, condos have outperformed single family homes over the last quarter, last year and the last 5 years. Second, condos are less volatile, with 24 month of large negative price swings versus 31 months with single family homes. Lastly, over several periods, condos have been more affordable on a price per square foot basis which means you can get more “bang for your buck”!

[RS] When is the optimal time to consider downsizing?

[Opendoor] There is never a perfect moment to look at downsizing and there are unique elements that affect each family’s decision. With an aging population and population movement towards downtowns, downsizing is becoming more attractive over time.

[RS] What is the number one mistake buyers make? And the number one mistake for sellers?

[Opendoor] Buyers and sellers often overestimate how quick and easy it will be to either buy or sell a home. Depending on the market, 15-35% of homes that list don’t close and those that do take an average of X days. This comes down to a whole set of reasons. Although there is a very real impact for homeowners of delays and deals that fall through. Many say they become more stressed and the inconvenience makes it tough to plan for the future. Opendoor is setting out to make the process straightforward and stress free for as many people as possible.

Blogger-in-Chief here at RetirementSavvy and author of Sin City Greed, Cream City Hustle and RENDEZVOUS WITH RETIREMENT: A Guide to Getting Fiscally Fit.

6 Comments

  1. Sounds like a very interesting system. I’m guessing the offer is a bit under market value, to be such a quick sale?

    Tristan

    • “I’m guessing the offer is a bit under market value, to be such a quick sale?” Something along those lines would be my guess. I’m certain an assessment of how long it will take to move the property is part of the analysis they make. At the end of the day, no matter how you slice it, there are always two parts to the transaction … the selling and the buying. In order to sell in a timely manner, the conditions to buy – price being the most prevalent – must be right.

  2. Do you know how they manage to provide an instant sale with a competitive offer? It sounds too good to be true although I’m sure it’s legit if you’re covering it.

  3. Wow James – that’s really interesting! I just went to their site and they are not in our area yet. I’ve bookmarked them to follow though. Since we are downsizing next year, I wish they would be out East!

    • We’ve thought about downsizing in retirement, but at this point I believe we’re going to stay put. Maybe by the time we are ready to retire, about 10 years, they will have made their way to southern Arizona and would present an option should we change our minds.

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