One big hurdle for homebuyers is that they often have to sell the home they live in before they can purchase a new one. Opendoor, an exceptionally well-funded startup that makes "instant offers" on homes and then flips the properties of sellers who accept the offers, has unveiled a service designed to solve the problem. Opendoor's "Trade-In" lets homeowners sell their current home to Opendoor and buy a new home simultaneously. Sellers can pick a date when they can both close on the sale of their home to Opendoor and complete the purchase of a new one. Headquartered in San Francisco, Opendoor is basically a tech-turbocharged home flipper. (CEO Eric Wu prefers the label "re-saler," since, unlike many home flippers, Opendoor doesn't target homeowners in a bind, he says.) The startup uses automated valuation models (AVMs) to make "instant offers" on homes to sellers who ask for them, buys properties from sellers who accept those offers in a matter of days...
- Homeowners are supposed to be able to use "Trade-In" to schedule a time to sell their home to Opendoor and buy a new one on the same day.
- The service, which makes 'instant offers' to sellers, can benefit a buyer the most if she uses Opendoor's preferred lender and purchases a home used by Opendoor.
- Well under 2 years old, Opendoor has raised $110 million. It bought 500 homes in its first year.