It looks like self-driving cars will become the norm in the not so distant future. But, will self-selling homes be the next wave? If startup OpenDoor Labs, Inc. succeeds the future begins right now! Is your job, as a luxury real estate marketing professional, in jeopardy?
In Phoenix, Arizona OpenDoor Labs is already offering sellers immediate cash (below market value) and quick closes for their homes, with no need for a listing broker. They then put the homes back on the market and are netting an average of $10-15,000 (after renovation costs and broker commissions to buyer representatives).
So far, they have bought over 500 homes with an average price of $230,000 and sold 300 of them. They charge sellers between 7% and 12% in fees and the seller selects the closing date.
Their unique, 24-hour, self-serve “open houses” are quite remarkable. They let it be known that video cameras are in use to prevent vandalism. To gain entry to the home, you text a password to a phone number and enter a code to unlock the front door. In the house there is a plaque with the instructions on how to buy an OpenDoor Home.
We do not think that this a threat to luxury real estate which represents the top 10% of the price range of homes. But, it could signal a change in the industry at lower price points.
What do you think? Is Your Real Estate Job in Jeopardy?
Written by Ron & Alexandra Seigel-
ABOUT: Napa Consultants, International is the leader in brand strategy for the luxury real estate industry. They work exclusively with professionals who are passionate about gaining or sustaining market leadership. With an expertise in personal branding, company branding, luxury real estate website design and social media marketing they help their clients become the breakaway brand in their marketplace.