HOUSTON – (Realty News Report) – Opendoor, a San Francisco-based residential real estate company on a mission to revolutionize home buying and selling, will soon close its first sale in Houston since launching in July.
As one of the top three housing markets in the country, Houston is ripe for the Opendoor model, said Greg Hiltz, Opendoor City Launcher.
“We have 28 homes listed from the greater Houston area, and six are under contract,” said Hiltz. “It has been an amazing launch and we have outpaced our goals. In just a few months we have hired a team, secured office space, identified local contractors to work with, and we are now helping Houstonians sell and buy homes.”
Home sellers go online to request an offer and to provide some details about the home. Opendoor then values the home by looking at comparables and specific details about the home’s condition and features, and makes an online offer to purchase the home within 48 hours. If the seller accepts the offer, they set a closing date. Once closed, Opendoor prepares the home to sell, deducting the costs of any needed repairs. Hiltz said Opendoor does cosmetic repairs and is not a home flipper handling massive renovations.
The company charges a fee for the transaction, from 6.5 to 10 percent depending on how long Opendoor predicts it will take to sell the home. An app-based platform is used for buyers to virtually tour listings.
Two challenges for the company are building brand awareness and informing the brokerage community about how to utilize Opendoor to service their clients.
Opendoor, a member of Houston Association of Realtors, advises agents to consider Opendoor an additional resource for their businesses.
“This is another tool for agents to establish trust with their clients,” said Hiltz. “They can use Opendoor to get a fair market offer and then counsel their clients on listing options, and whether to go to the open market.”
The company buys homes that are not distressed ranging in price from $100,000-$500,000. It does not buy homes that have been flood damaged, built before 1960, or those located in gated communities.
Opendoor operates in 14 other cities, including Dallas and San Antonio, with Austin scheduled for a mid-November launch.