Homeowners Lose Thousands selling on Opendoor and Similar Services, Expert says

Listing with Alternative Listing Services vs Realtors: Bad News for Uninformed Sellers. Homeowners warned how much money home sellers may lose using Opendoor, OfferPad, ZHomes, Knock, UpNest, etc.

Henderson, United States - May 16, 2018 /PressCable/ —

Most home sellers could be forgiven for not understanding exactly just how much money they lost selling their home purely online, maybe not even years later, as they never knew the true value of their home in the first place. But for the savvy homeowner who wants to know the facts to get the best return on their investment, continue reading. Unfortunately, for those who have already used online services and are reading this for the first time, many profuse apologies in advance for any resulting pain and anguish finding out they have been robbed of a significant sum of their home-value in a single week.

To understand the situation, Opendoor, ZHomes, OfferPad, UpNest, Knock, and a dozen other new home listing alternatives are attempting to disrupt the real estate industry by providing new processes and alternative listing services for sellers to sell for a discount in exchange for convenience, almost like trading in a car.

New tech startups, especially with the lower costs of cloud-based businesses, are usually a boon for consumers. Unfortunately, when those cost savings are poured directly into marketing to uninformed homeowners, predatory buying practices become very lucrative, especially when the buyer is a very well-funded corporation that is much more informed on the processes, fees, values, negotiations, documentation, and representation than the everyday homeowner.

“These companies are the buyer and therefore looking out for the buyer’s interest. It is not in the buyer’s best interest to disclose how much the seller is leaving on the table. Sellers need to be diligent in getting their Net Proceeds to Seller from a Realtor as well as their Net Proceeds to Seller from other alternative listing services and then make an informed decision,” recommended expert Robert Adams, Broker/Salesman & Team Leader of The Adams Team at Rothwell Gornt Companies, on http://www.LVrealestateHELP.com.

These new alternative listing services and many others vary in fee structure, processes, and representation per company. In the below example, Opendoor.com’s fee structure, process, values, documentation, and representation per the information provided on their website and other public sites are explored in greater detail (see graphic with an example of a house selling in the Las Vegas market & sources referenced).

Opendoor is a very large corporation with around $500,000,000.00 (after a $110,000,000.00 investment from Lennar, the largest homebuilder in the country) backing them to find undervalued deals from uninformed homeowners by distracting them with convincing and confusing fee structures and enticing home sellers with the benefit of convenience.

Alternative listing companies will claim the deal is transparent, but they are not fully disclosing to homeowners how much money the homeowner is missing out on, or as some call it the “Cost of Convenience”. This example is a side by side comparison of not only the fees, but also the sales price difference. The final result shows the “Estimated Cash Before Close” / “Net Proceeds to Seller”, as this is what the seller would walk away with using both processes Opendoor, or similar service, and with a Realtor.

“For many, selling their home is one of the most important moments of their life, especially financially. A little education goes a long way, but an expert who works on your behalf could save you in the $10’s of thousands. When I found out how many homeowners were certain that selling online was going to save them money, that was a pivotal moment for me, and I needed to find a way to educate uninformed homeowners. Writing blogs, engaging in social media, press releases…sometimes you have to go online, to fight the misinformation online.” – Robert Adams, Real Estate broker in MA, RI and NV.

About Robert Adams:

He started as a real estate investor in 2002 and is now the Team Lead for The Adams Team at Rothwell Gornt Companies in Henderson and Las Vegas, NV, as well as the Team Lead for The Adams Team at Sankey Real Estate in MA and RI. He and his team members have closed over 500 transactions and is Licensed in NV, MA, and RI.

Disclaimer:

The views and opinions expressed in this news article are those of the authors and do not necessarily reflect the official policy or position of the Rothwell Gornt Companies or its Broker. Examples of analysis performed in this article are only examples. They should not be utilized in real-world analytic products as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of the Rothwell Gornt Companies or its Broker.

Sources:

*Home Value: Using the price that Opendoor would relist the home for after buying it from the seller, or rather what the seller could have listed it for themselves should they have chosen to put it on the market.

**Offer Price: 5.75% is the difference between Opendoor’s average Offer Price vs the Price they relist it for on the market. “…Opendoor customers sold their homes at an average discount of 5.75 percent off what Opendoor had listed the properties for on March 17. These stats are based on the 11 Las Vegas-area listings that appeared on Opendoor’s website on March 17.” – Teke Wiggin | Inman News ​https://www.inman.com/2017/03/22/opendoor-cost-markup-fee-las-vegas/

Contact Info:
Name: Robert Adams
Email: RobertAdams@LVrealestateHELP.com
Organization: The Adams Team at Rothwell Gornt Companies
Address: 1716 W Horizon Ridge Pkwy #130, Henderson, Nevada 89012, United States
Phone: +1-702-349-9175

For more information, please visit http://www.LVrealestateHELP.com/

Source: PressCable

Release ID: 346272

Latest News

What is lava haze? A look at Hawaii's latest volcanic hazard

May 22, 2018

PAHOA, Hawaii — Lava from Hawaii's Kilauea volcano is pouring into the sea and setting off a chemical reaction that creates giant clouds of acid and fine glass. The lava haze, or "laze," is created when molten rock hits the ocean and marks just the latest hazard from a volcano that has been generating earthquakes and spewing lava, sulfur dioxide and ash since it began erupting in Big Island backyards on May 3. The dangers have forced at least 2,000 people to evacuate and destroyed more than 40 buildings. It's also created anxiety for thousands of others about the possibility...

Consumer Reports raises concerns over Tesla Model 3 braking

May 22, 2018

DETROIT — Long emergency stopping distances, difficult-to-use controls and a harsh ride stopped Tesla's Model 3 electric car from getting a recommended buy rating from Consumer Reports. While the magazine said the car has exhilarating acceleration and handling, testers were troubled by its 152-foot average stopping distance from 60 miles per hour in emergency braking tests. The magazine said the distance was worse than any modern car it has tested, and is about 7 feet longer than a Ford F-150, a full-size pickup truck that weighs about twice as much as a Model 3. Tesla said in a statement that...

Humans account for little next to plants, worms, bugs

May 22, 2018

WASHINGTON — When you weigh all life on Earth, billions of humans don't amount to much compared to trees, earthworms or even viruses. But we really know how to throw what little weight we have around, according to a first-of-its-kind global census of the footprint of life on the planet. Humans only add up to about one ten-thousandth of the life on Earth, measured by the dry weight of the carbon that makes up the structure of all living things, also known as biomass. The planet's real heavyweights are plants. They outweigh people by about 7,500 to 1, and make...

Jupiter's backward-flying asteroid from another star system

May 22, 2018

CAPE CANAVERAL, Fla. — Just months after the discovery of our first known interstellar visitor, it turns out there's another asteroid from yet another star system residing in our cosmic club in plain view. Scientists reported Monday that this interstellar resident is an asteroid sharing Jupiter's orbit but circling in the opposite direction. The asteroid, known as 2015 BZ509, has been in this peculiar backward orbit around the sun ever since getting sucked into our solar system, the researchers said. About 2 miles (3 kilometers) across, it joined our neighborhood in the first moments after our solar system formed 4.5...

NASA shipper Orbital ATK launches space station supplies

May 22, 2018

CAPE CANAVERAL, Fla. — One of NASA's prime shippers, Orbital ATK, launched a fresh load of supplies to the International Space Station from Virginia on Monday. The Antares rocket blasted off from Wallops Island before dawn, treating early risers along the East Coast to a cosmic light show, at least where skies were clear. The area of visibility stretched from New England to the Carolinas, and as far inland as Pittsburgh and Charlotte. The 7,400-pound shipment — a third of it research — should reach the orbiting lab Thursday. A flight controller wished the Cygnus capsule "a smooth trip" on...

Broaden News

About Us

In-Depth Science delivers comprehensive and compelling news and analysis on everything science and technology, seven days a week in a reader-friendly format.

Contact us: sales@indepthscience.com