BUY an OpenDoor Home - they are on sale!!
OpenDoor has been splashed across the news due to their misleading of sellers which in turn has forced them to pay a $62M fine. Find The Article Here
Their business model is not new, just highly refined. They buy homes directly from sellers at a low cost (in theory) , do some minor updates and put the home back on the market to make a profit. Their implementation of this business model does have some major holes in it. It doesn't seem like they saw this slow down in the market coming since several of their listings recently have been marked lower than what they initially paid for it..
Currently, OpenDoor has 496 active listings for sale ranging from $288,000 to $948,000 with an average asking price of $498,000 and an average days on market of 64.
As of now, OpenDoor has 13 homes under contract. And in the last 3 months, they've only sold 89 homes--about 29-30 per month. The most telling number is that in the last month they've only sold 11 homes. Of the 11 homes that did sell, before they sold, OpenDoor had to drop the asking price by an average of $24.5k and they ended up selling for an average of 92.83% of the original asking price.
Month's supply of homes is where they are really exposed. With around 30 homes selling per month and almost 500 homes available for sale, they have nearly 17 months of housing supply.
For perspective, Austin's overall market had 2,850 homes sell in the last 30 days and with 8,000 homes on the market we have about 2.8 months of housing supply.
See statistics below on how OpenDoor is performing against the overall market averages for sales in the last 30 days.
While analyzing the data, all we are really seeing is Opportunities for Buyers. These homes are prime for negotiations and from our experience, OpenDoor is ready to cut deals to clear out some of this housing inventory.
All data provided by the Austin Board of Realtors and is deemed reliable as of August 1st, 2022.
Please reach out if you would like us to email you a list of all OpenDoor homes available on the market. Lastly, if you would like to discuss buying, selling, or investing in the Austin real estate market, feel free to fill out our questionnaire with the link below and we will reach out.
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