AgentReal Estate Connect

Opendoor to agents: We don’t want to ‘break up the party’

Property-exchange platform rep says startup strives to pay market value for homes

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

NEW YORK -- Opendoor -- the up-and-coming property exchange platform that recently closed a $210 million funding round -- wants to "join the party, not break up the party." The startup is seeking to partner with the real estate industry and shell out tens of millions in commission to agents this year. And it's striving to purchase homes at market value -- a goal it's pursued so faithfully that the company has sometimes paid more than it should. That was the message Ryan Johnson, vice president of operations at Opendoor, had to share with agents and brokers on stage at Inman Connect New York. Partnering with brokerages Opendoor makes offers on homes based largely on automated valuations and can close on a purchase in as little as three days for a service fee that averages 8 percent of a property's value. The startup then makes light repairs and tries to resell the homes. Not only does Opendoor pay referral fees to agents and compensation to buyer's agents, ...