Ever Heard of Knock, OfferPad or Opendoor?
A patient of my sister told her they had sold their home using Opendoor. No hassle! Stress free! They even sent out a contractor to give an estimate on work that needed to be done. That threw up a red flag!
The company buying the home (Buyer) sent their contractor out to give the seller the estimate of repairs. The “buyer” decided on repairs the seller needed to have done? The buyer’s contractor was the only estimate submitted to the seller? Talk about a hostage audience! This seller was apparently happy as pie, but how much money did they leave on the table? Inman News posted a great article written by an Atlanta agent who compared all three of these sites. I found it interesting and thought I would share, especially for all potential sellers to read!
An Atlanta agent takes Knock, OfferPad and Opendoor for a test-drive
Some say Knock, OfferPad and Opendoor are the wave of the future — that they are “coming for real estate” — but as a Keller Williams agent, I’m not so sure that’s the case.
Knock’s new trade-in model, OfferPad’s “Agent-on-demand” and Opendoor’s $1.3 billion annual purchase rate are worth discussion, and I do believe they have a market, but I don’t think these companies are the massive real estate force they are reported to be.
How they work
All three companies are very similar. Each one is a for-profit company, which means they seek to make a profit either by relisting it or through commission on the sale of the home.
Opendoor and OfferPad offer sellers a lower price for their home and relist it at a higher price to sell it for a profit. In Knock’s case, it lists the home on the market rather than buying it directly from the sellers. After the home is listed on the market for six weeks minimum, it potentially offers to buy the home.
The process starts with buyers who submit information about their home. The companies then research comparables (comps) and tax records, and then they present the buyers with a comprehensive offer that includes the home cost and all fees.
To Read the Entire Article by Chad Schernikau in Smyrna, Georgia Click Here
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