AgentTechnology

Opendoor’s ‘ultimate mortgage’ offers 1% off purchase

Offering could help Opendoor lower holding costs, generate new revenue
  • Opendoor is offering financing to buyers who purchase its homes in Texas and Arizona.
  • Service claims to save users 1 percent of the purchase price off closing costs of an Opendoor home.

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To compete on price with real estate agents, high-tech investors known as "iBuyers" will need to figure out ways to sell their homes very fast and for top dollar. Leading iBuyer Opendoor, which makes quick offers on homes and can close in days, has taken another step in this direction by offering financing to buyers who purchase its homes in Texas and Arizona. To incentivize Opendoor buyers to use its mortgage brokerage, Opendoor offers a 1 percent discount off their purchase of an Opendoor home in the form of a credit towards their closing costs. "The ultimate mortgage," reads a website for Opendoor Mortgage. "1% off your purchase." Opendoor Mortgage advances the company's goal of complementing its purportedly frictionless experience for homesellers with a streamlined experience for the buyers who purchase its homes. Moving in this direction could allow the firm to generate more demand for its listings and earn additional fees (in this case, mortgage origination fees). ...