Wednesday, February 20, 2019
By Blake Hiott
Considering Using A "Cash Offer/Quick Close" Company?

Thinking of selling your home to one of the "We'll pay you cash and close in 15 days" companies? Be aware of all the additional fees/costs that they will deduct from their offered price.

Opendoor recently purchased a home in my neighborhood for $12,000 below this Broker's price opinion.

After agreeing to the low offer, the seller was charged a transaction fee. According to Opendoor’s pricing comparison page, the average seller will pay a 6.7% fee for the transaction. That said, Opendoor’s service charge could fall anywhere between six and 12 percent, which is more than my firm charges for brokerage AND marketing fees and cancels any perceived potential savings.

If, after reviewing your offer and associated fees, you decide to accept, Opendoor will schedule a free home assessment. The company will send out a team of its own employees and independent contractors to “verify the condition of your home and identify any repairs that need to be addressed before closing,” including structural, exterior, roofing, plumbing, electrical, insulation and ventilation, and HVAC systems.
If any repair needs are identified during this step, you’ll have the option to complete them yourself, or the company can handle the work and deduct the costs from your offer.

After deciding to sell their home, these sellers settled for $29,000 less than potential return and never gave today's very competitive seller's market an opportunity to work in their favor. They did this to be able to close up to 15 days faster than using a professional broker.

It's no wonder they are receiving reviews like these:
One Star
"Horrible experience
By Nancy C., Temecula, CA, Jan 21, 2019 Verified Reviewer
I was very happy to go into contract with Opendoor based on the reviews and advertising, however, I was severely blindsided by the assessment. The team of 10 descended on my home as if they had already owned the property. The roofer "expert" removed tiles from my roof and took pictures and did not replace the tiles removed. So, I had to call my homeowners insurance and file a claim. We had several days of rain. They were in my home for over three hours and moved and processed it as if it was a crime scene. Then on top of the 26 thousand upfront fee, they tried to charge me 21 thousand dollars for "repairs." They refused to negotiate anything, and now I have to pay for an attorney for the "assessment" process. They are criminals. Please save yourself and go with a realtor and reputable company. They're not reputable or honest.

Bottom Line: No, I would not recommend this to a friend"