There is a whole new way to sell your home in Ken Caryl, and our first taste of this new model just hit the neighborhood this week. Opendoor is a new model of real estate sales, offering to buy your home with cash, no hassles. Additionally, Opendoor places the home back on the MLS for sale, and they allow the consumer to access the home without the assistance of a real estate agent.
This town home in Ken Caryl was recently listed on the market with Opendoor. Opendoor launched in Colorado in October, and claims to have purchased and relisted 40 homes in that time. How does this process work? The previous owner of this Ken Caryl home sold to Opendoor on December 18th for $356,100. I’m not certain what if any closing costs were involved, but it is safe to assume that that was an easy cash out for the seller…no showings or inspections or anything else involved.
Then 3 weeks later, the home is up for sale, owned by Opendoor Property, for $398,000. Assuming they get this price, that’s a pretty good profit for the company as they most likely didn’t make any repairs or updates to the property. When you factor in closing costs and typical real estate transaction fees, the previous seller will have left about $15,000 on the table in exchange for a quick and easy seller.
Here’s the really interesting and different part. You don’t need an agent to go and view the home. You simply download the Opendoor app on your phone, go to the property and follow the instructions posted on the front door. If you like the home, you can submit an offer, again without the assistance of an agent, on their website.
From my perspective, there are some benefits to the home seller in this scenario. I’m not seeing any real benefits to the potential buyers. I also see some huge risks to both the seller, buyer, and the property itself. I’d love to hear your thoughts on this and see if the risks outweigh the benefits in your mind.