Do Opendoor Properties Influence Market Value?

[CindyR]

https://www.azcentral.com/story/money/business/jobs/2019/07/06/opendoor-com-real-estate-company-double-phoenix-area-workforce/1643520001/

 

[Michigander]

I was at a conference a couple of years ago when the OD people presented. The concept is as stated, buy a little low, do some minor fixes, and sell a little high. Upshot to the seller of the property is no fuss, no muss. Downshot is a little less $$ but a lot less hassle. Think the impact is going to be felt on relocation appraisals as it is quicker than the relo buy-out process and attractive in markets that are not moving at a great clip. In a market that is still undersupplied and "hot" this won't be very beneficial to the seller unless they have a house they want to buy and have to have a guarantee for their new purchase.

Interesting concept. Low margins, but make it up with commissions perhaps. We don't have them in my market yet so haven't seen anything about how they are selling.

 

[J Grant]

I once looked up their site, they only purchase/resell recently built, plain vanilla, mid price range single family homes -tract style houses without problems or HOA issues their target ...their transaction may have more impact in those areas. They do not even operate in some states.