One of the questions we hear now and then is how to choose whether a traditional real estate agent or Opendoor (or a service like it), will be best for a particular home seller’s situation. To help you decide whether it’s worth considering in your situation, let’s look a little more closely at both listing options.
Services from Opendoor
Opendoor provides a preliminary offer based on specs and a photo you provide; once one of their inspectors does a walk-through, they’ll make a final offer. Sounds like a simple process and it is—in fact, that’s the whole point.
Opendoor focuses on providing services that fill a specific set of needs (or wants). As a seller you might investigate this listing option if:
- You have a compelling reason to avoid showings. There’s no denying that cleaning up and clearing out is a pain! But if, for you, the desire is about more than convenience—if giving people full access to your home is a real burden, and/or you can’t move out, this may be worth considering.
- You’re worried about the transition between homes. Another very-nice-to-have: you can move out (or in) on the day you choose. There’s virtually no need to manage storage of your possessions or find a hotel or rental place to tide you over until your next home is ready.
The trade offs
Overall, Opendoor sets the price based on what their risk assessment tells them they’re likely to be able to sell it for. They then subtract their 5% fee, the costs of repairs and other costs, (including the cost of holding the property for however long is needed). If your house is in good condition, you’ll need just one walk-through by an Opendoor inspector; if repairs are needed you’ll have to manage that process—or, accept the quote you’re given for “necessary repairs.”
It’s about convenience, and of course you pay for that. The amount can be hard to quantify because some of it will come in “missed opportunity.” You’ll never know what you might have got on the traditional market. That’s why it’s important to consider your priorities.
Services from Traditional Real Estate Agents
Traditional agents, and the traditional home sale process, are what most people are familiar with. Their services focus on prioritizing your home selling price, and/or return on investment, while also reducing riskand streamlining your overall process.
For most of us, our house is the largest asset we have, and among the largest transactions we’ll be involved with. Right now, multiple offer scenarios are common and well-prepared, well-marketed homes are selling for top dollar.
A traditional agent with experience in the local market will help ensure that you as a homeowner are making the most of your home’s assets, while preventing you from eating into the potential profits by over-prepping. They’re actually obligated to do all they can to ensure you get the most you can.
But it’s also personal. Traditional real estate agents are proud of their communities and of their ability to help individuals and families find a perfect match for their clients. It’s not just about a financial transaction; they’re a partner that achieves success by making you successful.
PLUS, it’s important to note that if your priority IS to sell your home as-is, your local real estate agent may be able to offer you the best of both worlds: convenience and keeping more in your pocket. That’s because many agents maintain lists of buyers and investors who may be looking for a home like yours—and are prepared to make fast, all-cash offers.
If squeezing the maximum profit from selling your home is important to your financial future, then a traditional real estate agent is likely the way to go.
What else do you need to know?
- Opendoor doesn’t buy all types of homes. In general, they’re looking for: Owner-occupied, single family or townhouses in the $100-$600k. Homes older than 50 years are not usually within their desirable range.
- Closing timeframes are similar between the two methods.
The net-net: For some homeowners, stepping outside the traditional process may bring benefits that outweigh the costs. If you see the large dollar amounts involved as an opportunity to protect your investment and solidify your financial future, that’s a situation that favors the traditional real estate agent vs Opendoor.
If you have questions about how to get the best price and the most enjoyable experience when selling your home, give us a call—we’ll help you get started.