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…