Re:Opendoor, a startup worth emulating
by jonstewart on Monday December 12, 2016 @11:36PM
(#13164467)
I thought similarly, too, but if time is money, then they really might be reducing the transaction costs of the seller, by allowing the owner to sell _now_ and without worries about the buyer's financing coming through, etc.
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Also the cost of moving twice. First into a short term rental so you can get the money for your next down payment from your current home, then moving into your new home.
Re:Opendoor, a startup worth emulating
by shostack on Tuesday December 13, 2016 @08:56AM
(#13166736)
I thought banks offered bridge loans just for this sort of thing, no?
Depends on your credit, it's not too common and they're also quite expensive. And if your sale falls through, you're pretty screwed
Re:Opendoor, a startup worth emulating
by shostack on Tuesday December 13, 2016 @07:02PM
(#13172572)
Interesting. So Opendoor removes that risk for a premium on fees it seems.
What is the path to reducing the fees overall? 6% seems a bit much in this day and age, particularly in the Bay Area where an agent sets up a few signs, posts the listing, does an open house for one weekend and that's it. And agents (both sides) are incentivized to close more deals, not get the best prices. Ultimately homeowners/buyers get screwed.