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

The Latest: Complaints vs Google, Facebook under new EU law

May 28, 2018

LONDON — The Latest on the European Union's new data privacy law (all times local): 12:35 p.m. A group that campaigns for data protection rights in Europe says it's filed legal complaints against Google, Facebook, Instagram and WhatsApp over the way they obtain users' consent under new EU privacy rules. The group NOYB.EU — which stands for "none of your business" — claims its action could force the U.S. internet giants to pay up to 7 billion euros ($8.2 billion). In a statement Friday, the group argued that the companies are making users' consent to their new terms of service...

Amid confusion, EU data privacy law goes into effect

May 28, 2018

LONDON — Lars Andersen's business handles some of the most sensitive data there is — the names and phone numbers of children. The owner of London-based My Nametags, which makes personalized nametags to iron into children's clothing, says protecting that information is fundamental to his business, which operates in 130 countries. But starting Friday, My Nametags and most other companies that collect or process the personal information of EU residents must take a number of extra precautions to comply with the new General Data Protection Regulation, which the EU calls the most sweeping change in data protection rules in a...

From airlines to pizza parlors, EU businesses adopt data law

May 28, 2018

LONDON — Lisa Meyer's hair salon is a cozy place where her mother serves homemade macaroons, children climb on chairs and customers chat above the whirr of hairdryers. Most of the time Meyer is focused on hairstyles, color trends and keeping up with appointments. But now she's worried about how the European Union's new data protection law will affect her business as she contacts customers to seek permission to store their details. Even though she supports the law, Meyer fears it may cut her mailing list by 90 percent as people choose to withhold their data or simply overlook her...

The Latest: Zuckerberg to heading to EU next Tuesday

May 28, 2018

LONDON — The Latest on Facebook's privacy scandal (all times local): 1:40 p.m. Facebook CEO Mark Zuckerberg will meet with leaders of the European parliament in a closed-door meeting next Tuesday about the data protection scandal that has engulfed his company. Even though his visit had been announced, it was left unclear exactly when Zuckerberg would visit the European Union legislature. The EU and British parliaments have been calling for Zuckerberg to appear before them for weeks ever since it emerged that a company, political consultants Cambridge Analytica, had been allowed to misuse the data of millions of Facebook users....

European stocks higher as Brent crude breaches $80 a barrel

May 28, 2018

LONDON — European stocks brushed aside earlier losses in Asia to rise solidly Thursday with oil companies in demand as the international measure of oil struck its highest level in three-and-a-half years after French oil giant Total threatened to pull out of Iran. KEEPING SCORE: In Europe, Britain's FTSE 100 was up 0.3 percent to 7,754 while France's CAC 40 rose 0.5 percent to 5,592. Germany's DAX advanced 0.3 percent to 13,037. Futures augured a sluggish start on Wall Street. S&P futures dipped 0.1 percent while Dow futures remained flat. OIL: Benchmark U.S. crude oil rose 70 cents to $72.20...

Sign up now!

About Us

Future Science Today reports on captivating developments in science, medicine, technology, and the world around us.

Contact us: sales[at]futuresciencetoday.com