AgentTechnology

Opendoor acts to placate agents, though concerns persist

High-tech home flipper adjusts 'money-back' guarantee
  • In response to criticism, Opendoor has adjusted its home 'money-back' guarantee to cover a buyer's agent's commission.
  • Some agents continue to criticize the startup for allegedly using misleading advertising and significantly adjusting offers after they've been accepted.

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Imagine you represented a buyer in the purchase of a home from a startup -- and that startup later encouraged you to refund your commission because of a promise it made to your client. In Phoenix, the very thought of this upset some local real estate agents. Their criticism has prompted high-tech home flipper Opendoor to make adjustments to its home "money-back guarantee," though the move won't be enough to silence all of the startup's critics. The guarantee Opendoor announced in June that it would buy back any home it sells to a buyer if the buyer requests a refund within 30 days of having purchased the property. But the buy-back price wouldn't cover both the commission Opendoor paid to a buyer's agent and the transaction costs. That meant buyers who elected for Opendoor's money-back guarantee would receive a refund that was a number of percentage points lower than what they bought it for. Opendoor offers a '30-day satisfaction guarantee,' 'certified 180-poi...