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

GM warns workers in Brazil on losses, tough turnaround plan

Jan 19, 2019

By Marcelo RochabrunSAO PAULO (Reuters) - General Motors Co has warned employees in Brazil that new investments there depend on a painful plan to return to profit in the country, according to a memo seen by Reuters on Saturday.In a message posted at Brazilian plants, GM's top executive in Brazil and Argentina, Carlos Zarlenga, said after running up a heavy loss over the past three years the operation had reached "a critical moment that will require sacrifices from everyone."The memo referenced comments that Chief Executive Mary Barra made during investor presentations last week about challenges in South America. "We are...

Trump says deal 'could very well happen' with China

Jan 19, 2019

WASHINGTON (Reuters) - U.S. President Donald Trump said on Saturday there has been progress toward a trade deal with China, but denied that he was considering lifting tariffs on Chinese imports."Things are going very well with China and with trade," he told reporters at the White House, adding that he had seen some "false reports" indicating that U.S. tariffs on Chinese products would be lifted."If we make a deal certainly we would not have sanctions and if we don't make a deal we will," Trump said. "We’ve really had a very extraordinary number of meetings and a deal could very...

U.S. special counsel disputes report Trump told lawyer to lie

Jan 19, 2019

By Karen Freifeld and David MorganNEW YORK/WASHINGTON (Reuters) - Special Counsel Robert Mueller's office on Friday disputed key elements of a media report that President Donald Trump directed his former lawyer to lie to Congress about a Moscow real estate deal, raising questions about a story that has dominated U.S. news coverage for the past 24 hours. BuzzFeed News reported late on Thursday that Michael Cohen, Trump's former lawyer who is slated to go to prison for lying to Congress and other crimes, told investigators working for Mueller that Trump had instructed him to lie about efforts to build a...

Trump travels to Delaware base to honor four Americans killed in Syria

Jan 19, 2019

By Alexandra AlperWASHINGTON (Reuters) - U.S. President Donald Trump traveled to Dover Air Force Base in Delaware on Saturday to receive the remains of four Americans killed in a suicide bombing in northern Syria.Trump, locked in a battle with congressional Democrats that has led to a nearly month-long partial government shutdown, announced his trip via a predawn tweet."Will be leaving for Dover to be with the families of 4 very special people who lost their lives in service to our Country!" he said.Trump told reporters on the South Lawn of the White House prior to departure that he planned to...

Women to march in hundreds of U.S. cities for third straight year

Jan 19, 2019

By Amanda BeckerWASHINGTON (Reuters) - Women will march in hundreds of U.S. cities and overseas on Saturday to mark the second anniversary of demonstrations that drew millions of protesters to the streets the day after Republican President Donald Trump's inauguration in January 2017.Women's March, a national nonprofit organization that evolved from the initial Washington march, is again hosting its main event in Washington, with hundreds of "sister" marches in other cities.March On, a separate grassroots coalition that also grew from the original march, has coordinated hundreds of marches in cities such as Boston, Houston, Baltimore and Denver.Leaders of both groups...

Search

Obserworld delivers the most accurate and up-to-date world news for the global audience with a thorough research and in-depth interviews. Discover the world through Obserworld.

Contact us: sales[at]obserworld.com