Down With Open Door, A Realtors® Perspective

iBuying became a raging trend during the housing frenzy of 2020. Folks were skeptical of leaving their homes, not wanting potential exposure to illness while also needing their home sold. Zillow, OpenDoor, and iBuyer companies started popping up left and right to soak up market share and “help” people move when they felt there were no other options. As we move forward, the companies are falling apart or, as is the case with OpenDoor, falling into large scale investigations to determine the extent of the damage done to consumers from their sticky marketing tactics.

Working with an algorithm will NEVER replace working with a person. Why are local agents adamant about working with someone with a working knowledge of your local market instead of a 1-800 number agent or lender? Because we want what’s best for you AND the community we share. Options like OpenDoor, the subject of this FTC investigation, will grab your attention with fancy language and skewed charts to show you how much you’ll gain from using them. If you are interested in a TRUE comparison, get the numbers from OpenDoor (or similar company) and then reach out to a local REALTOR® for their numbers. Compare those numbers. Think about how you’ll be treated if something unexpected happens, who is going to be at your door to help you through the process.

It’s costing OpenDoor $62 Million dollars. $62 Million because of deception. Here are a few other things they’ve violated:

“The agency’s investigation found that Opendoor also violated the law by misrepresenting that:

Opendoor used projected market value prices when making offers to buy homes, when in fact those prices included downward adjustments to the market values;

Opendoor made money from disclosed fees, when in reality it made money by buying low and selling high;

consumers likely would have paid the same amount in repair costs whether they sold their home through Opendoor or in traditional sales; and

consumers likely would have paid less in costs by selling to Opendoor than they would pay in traditional sales.”

So now we know that they’re a bad choice (I try not to speak in absolutes, but here we are. They’re a bad choice). How can you be sure you’re working with someone who is “people first?” Interview your agent(s). Here are a few things to ask/look for when searching for someone to sell your home:

• “What are your thoughts on our local market?” This is an obvious question. But you need to hear from their mouth what the avg price per square foot is, what buyer behavior is looking like, what kinds of offers can be expected and what kind of expectations you should have as a seller. Sign up for their newsletter and follow them online. You’ll learn alot about their local market knowledge from these places. If they don’t have a lot to say, that will tell you a lot.

• “What is your marketing strategy?” You’re looking for someone who puts skin in the game by hiring a quality photographer/videographer to take the pictures to market your property. The media lays the foundation, now where does it go? The MLS listing is the most obvious answer, but did you know that we can push our listings out other ways? Video gets 400% more visibility, according to the National Association of Realtors. YouTube, Facebook, Instagram and other social media platforms feed their consumers this kind of content on overdrive. Most companies have platforms that allow advertising through google or social media ads. We can target certain locations or people who have searched for a new home within a certain period of time. These tools allow us to push listings into the hands of potential buyers while they’re zoning out at night watching tv. We want to create captivating media that brings them back to reality and off the couch to view your home #IRL!

• Read the reviews and ask your friends. Google, zillow, facebook and more give consumers an opportunity to rate service providers. Read them and use them as a stepping stone for your decision. We covet word-of-mouth business. If several folks refer you to one person, there is probably a reason why.

It’s okay to interview more than one! If you connect with the first agent and feel good, great. Do not feel ashamed for interviewing more than one so that you can find the best fit for you.

To wrap up, this investigation is huge for consumers. Understand what path you’re following and please, find someone you trust to walk you through the process with the heart of a teacher and servant before trusting a flashy 1-800 ad.

I understand that sometimes you need a quick out and a cash buyer is attractive. If you’re looking for a good quality investor in the Coffee County area, reach out to me and I’ll get you connected. At the end of the day, my goal is to get you where you need to be. That may not include me in the transaction - I don’t want you to have the wool pulled over your eyes by the big guys when we have LOCAL folks who provide similar services BETTER.