Subscribe to Doug Young blog

The FTC just slapped Opendoor with a $62 million fine for 'misleading' customers about the true costs of its home buying business

The Federal Trade Commission (FTC) has imposed a $62 million fine on the home buying company, Opendoor, for misleading home sellers. The FTC announced the settlement on Monday, stating that Opendoor had falsely claimed that sellers could profit more by selling their homes to the company rather than through traditional methods. However, the FTC's investigation revealed that most sellers who sold their homes to Opendoor actually earned less than they would have through a conventional sale via a real estate agent. Opendoor, an instant buyer or "iBuyer", purchased 36,908 homes in 2021. The company buys homes directly from owners, sometimes making minor renovations before reselling them. Opendoor's business model allows for quicker closings compared to traditional real estate transactions. The company, which reported a net income of $28 million in the first quarter of 2022, generates revenue by charging a fee in lieu of the traditional brokers' fee.

“Opendoor promised to revolutionize the real estate market but built its business using old-fashioned deception about how much consumers could earn from selling their homes on the platform,” said Samuel Levine, director of the F.T.C.’s Bureau of Consumer Protection. “There is nothing innovative about cheating consumers.”

Read Full Article Here: https://www.businessinsider.com/opendoor-gets-62-million-ftc-fine-misleading-customers-costs-2022-8

For those Phoenix and Denver home sellers needing a quick close, we have another option available for you.  We have a partner who will front you 90% of the fair market value, and then pay you balance of what ever the home sells for.  They will turn you into a cash home buyer and you don't even have to list your current home until you've moved into your new one.  If you'd like more information on this great program, please reach out to me at 623.210.0902 or email doug@tctrealestate.com.

Homelight Home Seller Cash Buyer

 

Doug Young - Managing Broker

M: 623.210.0902
O: 720.600.2182
doug@tctrealestate.com


Posted by Doug Young on

Tags

Email Send a link to post via Email

Leave A Comment

e.g. yourwebsitename.com
Please note that your email address is kept private upon posting.