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

Banksy mural on garage in Wales sold but will stay in place

Jan 18, 2019

LONDON — A British art dealer says he has bought a mural stenciled by street artist Banksy on a garage wall in Wales for more than 100,000 pounds ($129,000). The artwork in Port Talbot shows a child playing in falling ash from a dumpster fire, an apparent reference to the steel town's air pollution. Security guards were hired to protect the work after it appeared in December on a steelworker's garage. John Brandler of Brandler Galleries in eastern England said Friday he has agreed that the mural will stay in place for at least two years. He said "I want...

Schism leads to dueling women's march events in NYC

Jan 18, 2019

NEW YORK — Conflicts over control, inclusivity and alleged anti-Semitism will mean that women protesting on the second anniversary of the Women's March on Washington are faced with competing demonstrations this weekend in New York City. One procession, around the edge of Central Park and down Sixth Avenue, is being organized by the Women's March Alliance, a nonprofit group whose leaders are putting on their version of the demonstration for the third straight year. Another event, a downtown rally held at roughly the same time Saturday, is being organized by the New York City chapter of Women's March Inc., the...

Study of Leonardo's 1st landscape finds he had 2nd thoughts

Jan 18, 2019

ROME — The first-ever scientific study of the oldest known drawing by Leonardo da Vinci has found that he added details to an earlier sketch of a countryside landscape, said the Uffizi Galleries, whose collections include the fragile work. The Galleries said the 1473 "Landscape Drawing for Santa Maria della Neve" was taken on Thursday to a Florence restoration laboratory for study, which began right away with microscopic examination. Aided by sophisticated, non-invasive instruments, such as infrared light, the experts on Thursday scrutinized the front of the drawing. Later they will study the back, where there is a sketch of...

From New Orleans to Tehran: Life of detained Iran newscaster

Jan 18, 2019

DUBAI, United Arab Emirates — She is largely unknown in the United States. But the American anchorwoman for Iran's state-run broadcaster, detained last weekend by U.S. authorities, is a familiar face on its English-language channel. As a newscaster for Press TV, Marzieh Hashemi has been conducting interviews and reading the news as written by government loyalists in the Islamic Republic. It's a long way from New Orleans, where she was born Melanie Franklin in 1959 to a Christian family. In college in Louisiana, encounters with Iranian students in the wake of Iran's 1979 Islamic Revolution saw her convert to Islam....

AP Exclusive: A peek at how Disney resort shows are made

Jan 18, 2019

LAKE BUENA VISTA, Fla. — With excitement building over a new "Star Wars" land opening later this year at Walt Disney World, as well as at its California cousin, it's easy to forget a slew of new entertainment shows also are debuting in the biggest year for the Florida theme park resort in two decades. If the famous Disney Imagineers provide the "wow" factor with their fantastical feats of engineering on rides and attractions, it's the entertainment division that provides Disney World's heart. Disney World recently invited The Associated Press for an exclusive, behind-the-scenes look at how it puts the...

Syok Asia welcomes the generations to witness the beautiful world of art and creativity in Malaysia and the rest of the world.

Contact us: sales@syokasia.com