OpinionTechnology

Are real estate auctions an alternative to Opendoor?

Why bidding on homes will become a mainstay
  • Opendoor’s greatest challenge is the same one that any discount or flipping model faces -- surviving the next downturn.
  • When most agents think of auctions, they think of distressed properties and being shut out of the commission. This is no longer the case.

According to Brad Inman and Wall Street, Opendoor is one of the hottest companies to watch in 2017. There’s a more important trend afoot, however, that lets agents keep their full commissions, provides a relatively quick sale, offers transparent bidding and usually nets the seller fair market value or better: auctions. Opendoor promises to simplify the homeselling process by making a fair offer on your home and letting you choose your closing date at your convenience -- no showings, no staging, no buyers backing out and no listing commission. In fact, Brad Inman recently predicted that Opendoor will become the second-biggest broker in the country by year’s end: "By unit count -- and, most importantly, by revenue -- the exchange platform will give a segment of the selling market the certainty they generally cannot get when unloading their homes the traditional way." In contrast, Sam DeBord likens Opendoor to payday loans that pluck away the seller’s equity in a swift...