The Truth About Zillow Offers, Opendoor and Offerpad
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The Truth About Zillow Offers, Opendoor and Offerpad


let me start this video by saying I’m
not here to bash Zillow offers open door or offer pad they’re trying to provide a
better customer experience similar to what uber and lyft are doing in the taxi
industry and what Amazon is done to the shopping industry in the case of Zillow
offers open door and offer pad or as I like to call them the zoo this
experience comes at a cost to the seller and many people don’t realize the buyer
as well let’s start with the seller zoos big offer is a hassle-free selling
experience having the certainty of a sale choosing a closing date lack of
dealing with showings and countless buyers coming through your home is a
huge draw so if you’re in a situation where you need to be closed by a certain
date or you can’t show your house for some reason this may be a great option
but it is going to cost you how much will it cost somewhere in the ballpark
of nine to twelve percent let me show you how zoo’s offer works to start out
homeowner fills out a bunch of information on their website information
about the home rooms baths kitchen upgrades stuff like that then zoo does
their work the example we’re using here is an actual offer received on a home in
the Phoenix area from open door before giving you their offer they show you
comparable properties a practice used by all Realtors they show six homes here
that range in price from two hundred and sixty seven thousand to two hundred
eighty five thousand next they show you the upgrades you described and in this
case many that make the home more valuable pool upgraded kitchen tile
floors nice yard and extensive upgrades throughout these facts should move the
value of the home to the higher end of the spectrum finally they give you their
offer $269,000 not too bad kind of on the low
side but that’s to be expected right but wait
here come the fees 2.5 percent service charge 3% buyer broker charge 1.5 percent
holding costs and 2.25 percent market risk for a grand total of nine point two
five percent or twenty four thousand eight hundred and eighty two dollars
there are zoo offers that are even higher some have seen as much as twelve
percent depending on the situation in the case of this home that would equal
thirty two thousand two hundred and eighty dollars now working with the
realtor like myself on a standard listing i’ll usually charge about six
percent three percent for the listing agent and three percent for the buyer’s
agent that’s it now based on the facts i have about this home I probably would
have listed at two hundred and seventy five thousand dollars which is slightly
below market value but would encourage over asking offers conservatively I
believe I could have sold this home for about two hundred and seventy eight
thousand dollars and once we subtract our six percent listing feet my sellers
would net two hundred and sixty one thousand three hundred and twenty
dollars seventeen thousand two hundred and two dollars more than they would
have received from open door so what’s the cost of the buyer disclosure is huge
in the real estate transaction lawsuits have been levied over failure to
disclose information about the home when you buy from an owner that has lived in
or over seen the house for multiple years you get a pretty thorough history
of the home in what’s called the spuds or seller property disclosure statement
this document is seven pages of ten point font
asking the seller questions about electrical plumbing heating and cooling
foundation roof pests and much more you’ll also receive a clue report that
shows any insurance claims on the property in the last five years
when you buy from zoo or a flipping company many times they won’t offer
spuds under the pretense they haven’t lived in the home I wish they couldn’t
do that but for now they can you are just getting a less complete picture of
history of the home and that’s really important
although the zoo may be helpful for some homeowners hiring a great agent like
myself to sell your home will net you more money and I think I can confidently
say we all like more money if you are ready to sell your home
I believe you deserve a better quality experience that’s why I’ve put together
a team of experts to ensure that every step of the process is beautiful and
seamless for you contact me right now for your free home evaluation you

2 Comments

  • KY Jack

    I just got an offer from offerpad and it was hilarious low. The fee was 7%. Luckily I'm not desperate! And it's a seller's market right now…pass on the offerpad unless it's an emergency.

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