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.
[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.
[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.