Should I Buy an Opendoor Listing?
You have likely heard of the phrase, “Buyer Beware.” Well, this applies as the answer to the question, “Should I buy an Opendoor listing?”
I have shown Opendoor listings. I have read their website. I have read hundreds of reviews and testimonials from buyers and I have talked to other agents regarding this question. The consensus is this in a nutshell:
- You will not save money
- You MUST get a home inspection
- You need to be willing to walk away if they don’t repair agreed-to items prior to closing
Many people think that Opendoor is a way to save money. In my research and experience, that is simply not true. Opendoor has a history of buying homes at a discount, charging the Seller extra fees in some cases. They, then, sell the house for market price. They do have a section on their website that indicates they will give $1000 credit to you if you use their preferred lender. You need to weigh the risk of using a lender that they are affiliated with. Everything could go very smoothly – it also could be another way for them to make money and the customer service may not be great. You could have delayed closings and other issues (however, this can happen with non-affiliated lenders as well which is a great reason to use a reputable, local lender that you are referred to by someone you trust.
I recommend every buyer get a home inspection. If someone did not want to get a home inspection on an Opendoor listing, I would make them sign a waiver form so I had no liability. All you have to do is read the complaints on the Better Business Bureau website and you will see the common issue buyers have had with Opendoor is the fact that it seems they have a tendency to put “lipstick on a pig.”
Continuing with that topic, there are so many reports of the lack of response or timely response when it comes to repairs being completed for buyers. Buyers have complained that their home inspection revealed a plethora of issues and even in negotiating those repairs with Opendoor, they were not repaired properly or not handled at all.
With anything, there will be good experiences and bad. Also, most people who have good experiences will not take the time to type up a review but a disgruntled person will make it their mission to sling mud. What you need to decide is, do you want to take the risk to buy an Opendoor listing when there are so many bad reviews. At very least, I would advise you to use a Buyer’s agent to represent you. DO NOT try to buy on your own. Listing agents work for the Seller – they legally do not have to have your best interest in mind. They have an obligation to the Seller (Opendoor). Have an agent represent you and they will fight for you. They will also help you decide if the best thing to do is just walk away.
I would love your feedback, positive or negative, if you have had experience with Opendoor.
Michelle Froedge is a residential Realtor and Principal Broker in the Greater Nashville and Williamson County areas of Tennessee. “Mom” to four-legged fur baby, Tyler, Auntie to Zelamie, she is a vegetarian and sings in her spare time. Michelle has lived in Nashville and Franklin since 1997 and has been selling homes since 2004.