Selling A Home With Opendoor In Denver Is Not All It Is Cracked Up To Be
Opendoor in Denver is now offering to sell a home the “traditional” way for a 5% commission, which is what they are considering a “discounted fee”. Of course, they claim all other Realtors are charging 6%, which we all know is not true in most areas, as I only charge my clients 1.5% to list their home, plus 2.75% to the buyer's agent for a total of 4.25%. However, Opendoor offering traditional real estate listing agreements is an interesting move on their part as they have typically tried to buy homes under market value and then charge the owner a bunch of fees just for the pleasure of choosing their closing date. If you read my prior blog post, you'd see that most homes around Denver are going under contract very quickly and buyers are doing whatever they can to accommodate the sellers needs. So what does this change mean? While I'm not totally sure, they are claiming earnings of over $30 million in Q4 2020, with a profit margin of 15.4% of sales, so maybe this is just a money grab, or, perhaps they are fearing a bubble? Check out the video below by The National Real Estate Post and let me know what you think in the comments below. If you are thinking about selling your home in Parker, Highlands Ranch, Castle Rock, Aurora or Littleton, please feel free to contact me for more information on my full service marketing program and keep some equity in your pocket.
Doug Young - Managing Broker