Opendoor Rides Hot Housing Market With 17% iBuying Premium

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Opendoor CEO Eric Wu (iStock, Comparably)

Opendoor is looking to avoid the hazards that helped take down Zillow’s iBuying business, riding the wave of appreciation in the housing market.

The San Francisco-based iBuyer is listing its homes at a median premium of 17 percent above what it paid for the homes, according to data compiled by University of Colorado Boulder scholar-in-residence Mike DelPrete. The median premium works out to about a $60,000 gain on the flip, per DelPrete.

That doesn’t mean Opendoor is making precisely that much revenue on its home flips. The iBuying business involves purchasing a home from a seller before making repairs before quickly putting it back on the market, meaning a slew of expenses involved in the flip beyond the closing of the initial transaction.

Nevertheless, the premium represents a historic high for the company, according to the data collected by DelPrete, which also uses YipitData’s historical…

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