Despite a softening market and a recent FTC fine, Mike DelPrete described Opendoor as well-managed and in possession of enough cash to thrive for years to come, at Inman Connect Las Vegas.

Inman events are the best way to connect. Gain insights and build your network this October at the virtual Inman Connect where we’ll explore the Industry’s Playbook for the Fall Market. Then, join us in January for Inman Connect New York, in person or virtually. Reserve your tickets now, prices will go up! 

Real estate analyst and iBuying expert Mike DelPrete argued Thursday that Opendoor is “playing the long game,” meaning the company should be able to thrive even through short-term challenges such as a down market and government fines.

DelPrete speculated about the future of Opendoor while on stage for Inman Connect Las Vegas. In response to questions from Brad Inman, DelPrete said he believes Opendoor had a strong second quarter of 2022 but is likely to experience “softeness” during the ongoing third quarter of the year.

“There will be some softness,” he explained. “Softness in prices and resale value.”

DelPrete went on to mention the ongoing market shift, which has slowed home price appreciation in the face of rising mortgage rates, as well as a recent FTC fine for $62 million against Opendoor. And the takeaway is that a company like Opendoor will face obstacles on its path to growth.

“Opendoor will certainly face pricing challenges in some markets,” DelPrete said. “Phoenix being the worse.”

But overall, DelPrete pointed to Opendoor’s $2.5 billion in cash and said the company should handily survive the current challenging landscape. He concluded that Opendoor is well-managed and “they know what they’re doing.” And he said, “if you look at the business, it’s pretty clear they’re playing the long game.”

“If you fast forward 5 years it doesn’t matter,” DelPrete said of the current shift’s impact on Opendoor. “It’s a blip.”

Mike DelPrete, left, and Brad Inman at Inman Connect Las Vegas Thursday  Credit: AJ Canaria of MoxiWorks

DelPrete also said during the session that he’s seen a shift in attitudes regarding new entrants to the industry such as iBuyers. When he attended real estate gatherings in prior years, he was often asked if such companies would survive or when the venture capital funding would dry up.

During this year’s Connect, however, DelPrete said he’s seeing more acceptance. And overall the mood is one of “openness and willingness and curiosity around these new models.”

“They’re here to stay,” DelPrete added. “They’re representing new and interesting solutions for consumers.”

DelPrete later noted that in addition to iBuying, new models include Power Buyers who back consumers with things like cash to help them snag a house. Both new and legacy companies are experimenting with these ideas, and while “nobody is getting a slam dunk,” DelPrete still sees value in things such as cash offers even in a softening market.

Whatever happens, though, DelPrete believes the future includes agents and that technology will only go so far.

“The future of the real estate,” he said, “is definitely human centered.”

Email Jim Dalrymple II

iBuyers
Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×