Opendoor | Proptech Talk Thursday #8

Welcome to my new PropTech Talk Thursday series to take a look and provide my candid thoughts on new Proptech businesses. These could range from products to companies leveraging technology to improve all facets of real estate. The Real Estate industry is one of the slowest to adopt technology but there are many opportunities along with money chasing these opportunities. Did you know that there is the option to sell your home online in some cities across the US without working with an agent? Let’s talk about the iBuyer movement and the largest of them all, Opendoor.


Based in San Francisco, CA, Opendoor has raised more than $1.5B in funding to date. Just a week ago, Opendoor made a deal with Chamath Palihapitiya to go public via a $4.8B SPAC deal. They are a newer breed of real estate company whereas Zillow and Redfin transformed how consumers searched for properties, Opendoor actually buys properties directly. They are an iBuyer that buys homes in cash based on their own algorithm. They deal with single-family homes built after 1960, priced between $125,000 and $500,000. But don’t try to sell them complete fixers as they disregard distressed properties, which require too much work, or more expensive properties, which are harder to value. Sorry Bay Area! ;)


So, how does it work? Property owners enter in information about their homes along with a bid on the online platform. When a bid is accepted, Opendoor purchases the property as-is, charging a fee slightly above the commissions real estate agents collect in return for the convenience of closing a sale quickly. They take a service fee of 6%, which is similar to the standard real estate commission, plus an additional fee that varies with its assessment of the riskiness of the transaction and brings the total charge to an average of 8%. They then improve and repair the property before relisting it. They are holding literally thousands of homes at a given time since when they acquire the home, they are the owners. Think of them like a flipper, but on steroids with a ton of capital.


Now this seems great, right? No Realtor, no showings, just some rich company buying your home. While the costs are a little higher than working with a Realtor, your net is likely significantly lower. Remember, that you are not selling what the market will pay for the home but what one company is willing to value. These companies want/need margin for each home so are you actually netting the most amount? Unlikely. The concept of buying direct has been going on for decades. I can buy your home in all cash if you allow me to. It doesn’t mean I or any investors would be willing to pay market but if you wanted the convenience, that can be done today. However, the margins they ask for is much lower than investors given their massive volume and huge capital war chest.


Summary: If you want a quick and convenient way to sell your home, Opendoor and Ibuyers are great options for that. If you want to sell for top dollar, go with a top Realtor in your market in place. Tell me what you think and if you would sell directly to one of these companies.

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If you’re interested in buying, selling, or investing in residential or commercial real estate in the 📍SF Bay Area, contact me today!


📧Spencer@spencerhsu.com

📞 (408) 547-4590

⏰ Set up a time to chat: https://calendly.com/spencerhsure

🌍 Find your dream Bay Area home https://www.homesbyspencerhsu.com/

🎙️ Listen to my podcast: https://redcircle.com/shows/bayarearealestate

📸Follow me on Instagram: https://www.instagram.com/spencerhsure

🧑‍💼 Let's connect on LinkedIn: https://www.linkedin.com/in/spencerhsu

🛎 Don’t forget to subscribe for the latest real estate tips and updates: https://forms.gle/c5xkznHLTBh7Yzgi7

🏠💲 Track the value of your home and see if it's beneficial to refinance! http://bit.ly/3aFdyMW

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My Background: Born and raised in the Bay Area, I spent 11 years as Technology Sales Manager before becoming a Realtor. Having personally invested and done renovations through house flips in the Bay Area, I wanted to help busy professionals in the Bay Area tech industry find their dream home by leveraging tech, data and local insights. Our team specializes in creating trusted frameworks of buying, selling, and investing in the Bay Area. In 2022, we are thrilled to share that we have helped 80 clients in the Bay Area with their moves, which positions our team as the Top 1% groups in the country. Looking forward to helping you into your next home and save/earn you more money!

Spencer Hsu, MBA, Realtor

Spencer@SpencerHsu.com

408-547-4590

EXP Realty DRE #02077253

https://www.homesbyspencerhsu.com/

#BayAreaRealEstate

Avsnitt(362)

Berkeley CA BEST Pros and Cons 2024 | Moving to Berkeley | Bay Area Real Estate

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Los Altos CA BEST Pros and Cons 2024| Moving to Los Altos | Bay Area Real Estate

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Thinking of a Bay Area hillside home? Beware of the California Insurance Crisis! Insurance giants like State Farm and Allstate are leaving California, impacting your options. High risks, rising costs, and an old law are forcing insurers out. Limited choices and pricier coverage, especially for fire-prone spots like Berkeley and Oakland Hills. Act fast: scout insurance and lean on me for guidance. Comment your thoughts on California's insurance challenge.-Spencer Hsu is a Bay Area Real Estate Agent, a Residential, New Home Construction and Relocations specialist with eXp Realty LLC. Serving the entire Bay Area. He aims to help busy professionals in the Bay Area tech industry find their dream homes by leveraging tech, data and local insights.CONTACT ME: Call / Text: (408) 547- 4590DRE 02077253Email: spencer@spencerhsu.com www.homesbyspencerhsu.com💥 Follow me on Social Media 💥 → Instagram: https://www.instagram.com/spencerhsure/→ Facebook: https://www.facebook.com/spencerhsure→ LinkedIn: https://www.linkedin.com/in/spencerhsu/_________________________________#BayAreaRealEstate #LivingintheBayArea #MovingtoCalifornia

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Unlocking Wealth at Home: Bay Area Luxury Estate Sale Interview with a Top Liquidator

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Discover the secrets of unlocking wealth from unwanted belongings with Kuzak's Closet, a full-service professional estate liquidation company in the Bay Area! 🏡💰 In this video, we sit down with the experts to learn how they help clients transform their unused items into a goldmine. From luxury estate sales to unique finds, uncover the potential of your hidden treasures! 💎✨-Spencer Hsu is a Bay Area Real Estate Agent, a Residential, New Home Construction and Relocations specialist with eXp Realty LLC. Serving the entire Bay Area. He aims to help busy professionals in the Bay Area tech industry find their dream homes by leveraging tech, data and local insights.CONTACT ME: Call / Text: (408) 547- 4590DRE 02077253Email: spencer@spencerhsu.com www.homesbyspencerhsu.com💥 Follow me on Social Media 💥 → Instagram: https://www.instagram.com/spencerhsure/→ Facebook: https://www.facebook.com/spencerhsure→ LinkedIn: https://www.linkedin.com/in/spencerhsu/_________________________________#BayAreaRealEstate #LivingintheBayArea #MovingtoCalifornia

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Where to live in Santa Clara County 2024? | Moving to the Bay Area | [TIPS FROM A BAY AREA NATIVE]

Where to live in Santa Clara County 2024? | Moving to the Bay Area | [TIPS FROM A BAY AREA NATIVE]

Are you looking to live in the Santa Clara County region in 2024? In this video, I'll share with you my tips on where to live in the Santa Clara County region, based on your lifestyle and commute.Take a look at my list of the top places to live in Santa Clara County, based on factors like commute, cost of living, and more. I'll also share with you my thoughts on the areas on my list, so you can get a better idea of which place would be best for you. After watching this video, you'll have everything you need to make an informed decision about where to live in the Santa Clara County region in 2024!-Spencer Hsu is a Bay Area Real Estate Agent, a Residential, New Home Construction and Relocations specialist with eXp Realty LLC. Serving the entire Bay Area. He aims to help busy professionals in the Bay Area tech industry find their dream homes by leveraging tech, data and local insights.CONTACT ME: Call / Text: (408) 547- 4590DRE 02077253Email: spencer@spencerhsu.com www.homesbyspencerhsu.com💥 Follow me on Social Media 💥 → Instagram: https://www.instagram.com/spencerhsure/→ Facebook: https://www.facebook.com/spencerhsure→ LinkedIn: https://www.linkedin.com/in/spencerhsu/_________________________________#BayAreaRealEstate #LivingintheBayArea #MovingtoCalifornia

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