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

Tesla's Musk bashes media, proposes credibility check

May 24, 2018

(Reuters) - Tesla Inc Chief Executive Elon Musk gained the support on Thursday of more than half a million people on Twitter for plans to create a website evaluating journalists' credibility, spurred by his frustration at media reports about the electric car maker. Musk made his proposals in a tweet linking to posts on auto blogging site Electrek that criticized recent coverage of crashes of Tesla cars and pricing."The holier-than-thou hypocrisy of big media companies who lay claim to the truth, but publish only enough to sugarcoat the lie, is why the public no longer respects them," Musk wrote."Going to...

Wall Street opens flat as energy stocks, trade worries weigh

May 24, 2018

(Reuters) - U.S. stocks opened flat on Thursday, weighed down by declines in energy stocks as oil prices fell and worries over protectionist trade policies.The Dow Jones Industrial Average fell 9.45 points, or 0.04 percent, at the open to 24,877.36. The S&P 500 opened lower by 2.35 points, or 0.09 percent, at 2,730.94. The Nasdaq Composite dropped 3.97 points, or 0.05 percent, to 7,421.99 at the opening bell. (Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)

NTSB: Uber self-driving car failed to recognize pedestrian, brake

May 24, 2018

WASHINGTON (Reuters) - An Uber Technologies Inc [UBER.UL] self-driving vehicle that struck and killed a woman in Tempe, Arizona in March failed to identify the pedestrian or brake, raising serious questions about the performance of the vehicle, the U.S. National Transportation Safety Board said in a preliminary report released Thursday.The report said the vehicle's radar systems observed the pedestrian six seconds before impact but "the self-driving system software classified the pedestrian as an unknown object, as a vehicle, and then as a bicycle." At 1.3 seconds before impact, the self-driving system determined emergency braking was needed, but Uber said emergency...

Oil slips further below $80 a barrel as focus on OPEC intensifies

May 24, 2018

By Amanda CooperLONDON (Reuters) - Oil prices recorded their largest one-day drop in two weeks on Thursday, with expectations building that OPEC could wind down an output deal that has been in place since the start of 2017 due to concerns about supplies from Venezuela and Iran.Benchmark Brent futures were down $1.04 at $78.76 a barrel by 1312 GMT, its largest one-day fall since May 8, while U.S. crude futures dropped $1.05 to $70.79 a barrel."This discussion about possible OPEC supply increases after the June meeting has put a brake on the oil price for the time being, so $80...

Uber will soon detail plan to stop using diesel cars in London

May 24, 2018

LONDON (Reuters) - Uber [UBER.UL] said it will provide more information in the coming weeks on how it plans to stop diesel using cars in London and of a proposed scrappage scheme, as the court date nears for the taxi app to defend its right to operate in London nears.The Silicon Valley firm said in September it will stop using diesel cars in London by the end of 2019 and that the vast majority of rides will be in electric or hybrid vehicles by then."In the coming weeks we’ll set out more details of our plan to get thousands of...

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