iBuy, an Online home sales option, hits region

 

By: Mary Chao
NorthJersey.com
USA Today Network - New Jersey

..... North Jersey homeowners now have a new way to sell a home.
..... this month, [04/2022] Opendoor Technologies Incorporated expanded into the New Jersey market as it offers its services in suburban New York City areas.
..... Based in San Francisco, Opendoor is an iBuying concept, making an instant cash offer Online for a home with a quick closing, before the company makes repairs and then relist the home. It's an Online process that enables sellers and buyers to find a home.
..... "Opendoor eliminates the stress, hassle and complexity that typically come with the traditional real estate process," said division general manager Jon Enberg.
..... Opendoor decided move into North Jersey because it is one of the most complex and dynamic housing market, Enberg said.
..... "Many consumers living in North Jersey likely moved from New York City and are looking to upgrade their space, start a family, or escape from the hustle and bustle of the city, without being too far away," he said .
..... Opendoor is already in markets such as San Francisco, Miami and Los Angeles.
..... The copay makes money from the fee it charges on sales transactions, which is currently 5%, Enberg explained. It also makes money from services such as mortgages, title and escrow.
..... Opendoor makes a cash offer for a home to the seller and takes a service change of 5%. The charges is similar to an agent commission in a traditional sale. the fee allows the company to take on the risk and cover the cost of owning the home, such as maintenance and taxes, while customers have the certainly of a competitive offer and the flexibility to move on their schedule, Enberg said.
..... Whether the iBuying model works for a seller depends on each family's situation. Opendoor customers V.P> Boyle recently had to help his 75-year-old mother sell her condominium in Scottsdale, Arizona, and found the copay to be fair while offering a hassle-free process.
..... Since Boyle lives in Manhattan and is an only child, he could not spend weeks on the traditional process of fixing and listing a home for sale. being a New Yorker, Boyle said, he was naturally skeptical, but the process was smooth and the company offered a competitive price for his mother;s condo.
..... Unlike house flippers who buy low and sell high, iBuyers such as Opendoor then has to renovate the homes. Zillow Group Incorporated operated a similar concept before it shut down its iBuying business in November 2021.
..... Enberg said Zellow's exit from the iBuying business does not affect Opendoor, since its competition is those deals that are done off-line - the sellers Opendoor is trying to lure Online.
..... "As we are seeing a generational shift towards fully digital experiences, consumers are demanding ease and convenience," Enberg said.
..... He points to the convenient aspects of iBuying, such as avoiding open houses, home repairs and overlapping mortgages.
..... There's an increase in iBuying in real estate transactions, but there's also skepticism about it, said Jeff Fellers, a real estate agent at LK Sotheby's International Realty in Mendham.
..... There are always sellers who will accept less for the convenience of cashing out, Fellers said, adding that it makes sense for families who just do not have the time and energy to prepare a house for traditional sale.
..... That said, given the current hot sellers' market, "why wouldn't you open your house up to the entire market?" Fellers said.
..... Real estate is local, and while iBuying is seeing a surge, there is no replacement for the local real estate agent who can offer advice on the local market, Fellers said.

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