Insight on Open Door $62 Million Dollar Fine

Word on the street right now is that Open Door, an online home iBuyer service that advertising selling your home with convenience and ease just got slapped with a $62 million fine?!! FTC said, you know what? You're screwing over these sellers. You're not giving them a proper evaluation of what's going on because it doesn't benefit you. And then you're deducting closing costs, a convenience fee of 5% and saying that the house needs repairs.

So there's an additional amount that's going to come off the top. So that amount, they wouldn't even invest into the property. They would just slap some paint, maybe clean up a little bit, put it back on the market. They were just flippers and they were misleading the public and now they're going to be paying for it. You know, I have sellers that ended up going with Opendoor. And the reality is for the majority of them, they left so much money on the table that it wasn't worth that convenience. Now, there are a couple, though, that I know of and you know who you are, that perhaps there were some galvanized piping stuff going on. Perhaps it was some swimming pool stuff. Going on. And because of that, they stopped buying a lot of homes because that became a money pit for them. But the reality is, is that Opendoor just had this momentum of just buying, buying, buying, buying and creating this process that screwed sellers in the market. I mean, the reality is, is I buy your program. Buyers willing to pay cash for a home has been around forever, right? It's real estate. But now these companies come and they want to make it into this giant machine. But the reality is, is that Opendoor just had this momentum of just buying, buying, buying, buying and creating this process that screwed sellers in the market. I mean, the reality is, is I buy your program. Buyers willing to pay cash for a home has been around forever, right? It's real estate. But now these companies come and they want to make it into this giant machine. Right. And the reality is that each area is different. Real estate is a belly to belly business. You're dealing with so many variables you know, different buyers of sellers and lending stuff going on title. Each location is different. Each property is different. That the condition of the property, the financing, I mean, just so many variables that you just can't put in an algorithm that will benefit everybody at all times. I feel that they're realizing this, and that's exactly what happened to Zillow. As we know where Zillow got out of the business, they lost half a billion dollars trying to play this game. And this is not a game that you can do at full scale. You just can't do it. And I would say 99% of the sellers are left in a bad position where they lost out on a lot of money. So that is what I have for you right now. If you have any questions about real estate, we would love to talk to you, see how we can be of value to you. Whether you're thinking of selling or buying or even investing. Reach out to us, others, in fact.