How much will it cost to sell my home using Opendoor, Offerpad or Zillow? Is it worth the “convenience” factor of skipping the showings and choosing my own move-out date? The answer to this question will vary based on your circumstances and reasons for selling. If you need to move quickly and don’t have time to allow for a traditional sale, then these real estate companies may offer an easy solution. However, selling your home directly to Opendoor, Offerpad or Zillow, may cost you more than you think. These companies offer the convenience of a quick sale, typically with an all cash offer and no appraisal which might be attractive on the surface, but as the saying goes, “time is money!” Selling your home based on convenience alone could cost you thousands of dollars in unrealized equity and higher transaction fees.
Opendoor, Offerpad or Zillow definitely have their place in the real estate market, however, convenience comes with a hefty price tag and it may not be worth the cost in the long-run! A traditional sale will usually produce a higher sales price with much lower transaction and closing fees. Choosing to list your home for sale with an experienced Realtor will most often be in your best interest and it could also mean keeping more of your hard earned money in your pocket where it belongs!
I love using real-life examples, so here goes…I recently had clients who needed to sell their home and move out-of-state to pursue a job opportunity. They were concerned about listing their home and dealing with showings and trying to keep their home in “show-ready” condition with 5 young children. The timeline was also very important to them so they weren’t sure if they were prepared to sell their home using traditional methods. I encouraged them to request an offer from Opendoor so they could make a well-informed decision. Keep in mind, I helped them purchase their home in 2016 for $267,000 with $3000 in seller paid closing costs and seller paid repairs and home warranty policy.
This is a copy of the Opendoor offer and starter cost sheet:
Net offer details:
- Purchase Price: $320,000
- Opendoor customer experience and risk fee. Covers holding costs and liability by providing an all cash offer that allows your seller to close within 14-60 days, providing certainty after the option period: $24,000 (*Note: this fee amounts to 7.5% which is at least 25% higher than a typical listing fee)
- Net offer price: $296,000
Additional cost to seller to close:
- Co-broke due to buyer’s agent: $0
- Repair request: (to be confirmed post assessment)
- Seller closing costs: (title/escrow, taxes, recording, loan payoff, etc)
- Net to seller at close: Net offer less above fields
- All utilities must be on for the home assessment
- The home must be vacant by close of escrow
- Opendoor cannot purchase this listing if it has the following features:
- unpermitted additions
- leased solar panels
Opendoor will have a home assessment performed and will submit a repair request like a traditional Buyer. For the repair request, Opendoor will itemize the requested repairs along with the estimated cost for that repair and will typically ask the Seller for a price reduction or a credit in-lieu of repairs. Larger repair requests may result from roof, HVAC, foundation and/or pool issues.
The Opendoor offer was initially attractive to my clients because they needed to move by a certain date in order to start working and get settled in before the new school year began. They asked me to review the Opendoor offer and give my opinion of value and provide an estimated net sheet if they were to sell their home by hiring me as their Realtor. The delta between the Opendoor net sheet and my net sheet was over $10,000! I truly believed I could sell their home for a higher sales price and keep more of their equity in their pockets to help with their big move. After comparing the numbers, they decided to trust me and list their home for sale. After just 1 week on the market, we had an amazing offer! With some negotiations, the final sales price was $328,000 (this is $8000 higher than Opendoor). After all of their settlement and closing fees were paid, my clients were able to net $12,600 more from the traditional sale versus selling their home directly to Opendoor! That is a HUGE amount of money and they would have walked away from all of that earned equity had they chosen to sell their home to one of the alternative real estate companies. They were thrilled with the outcome and I was honored that they chose to trust me with such a time sensitive transaction!
⭐⭐⭐⭐⭐ “Keely just helped us sell our home in Mesa, AZ, and once again she lived up to the 5-star review I originally gave her. She goes above and beyond for her clients to make sure they are knowledgeable and prepared for every step of the process. She was such an encouragement to us in a stressful time of preparing to move across the country! I love how quick Keely responds via text/email/call to any questions or concerns that arise! We were always amazed at how fast she got back to us! Choose Keely as your Realtor – you won’t be disappointed.” –Micah and Bethany Hutchison (SELLERS)
⭐⭐⭐⭐⭐ “Keely loves her job as a Realtor and her passion for her work shines through at every step of the home buying process. She worked many hours to help us find just the right home for our family, in just the right location! I greatly appreciate
If you are looking to sell your home in the East Valley, then I would be honored to represent you and guide you through the process from listing to closing! My goal is always to achieve the highest possible sales price with the best terms for my sellers to keep more money in their pockets. This is a great time of year to sell your home and new inventory is still down, which means this is the perfect time to put your home on the market. I would be happy to meet with you and provide a FREE Market Analysis of your home’s current market value! Don’t hesitate to contact me via email or call/text 480.220.1321 to schedule a listing appointment today. There is no obligation or pressure to list, I will simply give you my opinion of value and offer some important information to consider that will help you earn top dollar for your property.
If you are thinking about buying a home in the East Valley of Phoenix, and you are uncertain about entering the real estate market right now, please don’t hesitate! Interest rates are still at historic lows and it is still a great time to buy a home!
Want to take a peek at homes for sale in Gilbert, Chandler, Mesa, Queen Creek and beyond? Look no further than the FREE home search tool on my website, it is easy to use, and it is reliable and provides real-time data as compared to many of the other home search websites out there like Zillow and Realtor.com which are consistently unreliable.
I am an experienced, local Realtor serving the areas of Gilbert, Chandler, Mesa, Queen Creek and the surrounding communities in the East Valley. It would be my honor to assist you on your real estate journey and help you to navigate the process of buying and selling Arizona Real Estate. From start to finish, I will be there to support you, answer your questions and calm your nerves at times too!
Keely Semon, Realtor®
East Valley Real Estate Specialist
United Brokers Group