Zillow or Opendoor: Who You Should Sell Your House To
Many homeowners are stuck between deciding on using Zillow or Opendoor for selling their houses. Both iBuyers are – at this point – mega tech giants in the real estate industry. Both Zillow and Opendoor are known as iBuyers. They purchase homes online nationwide from people that need to sell quickly. If you are trying to sell a property and don’t know anyone in your town willing to make you an offer, working with an iBuyer is worth entertaining. There’s no harm in reaching out to Zillow or Opendoor for an offer.
When preparing to sell your house, consider these facts when working with iBuyers like Opendoor and Zillow.
The Differences Between Zillow and Opendoor
Zillow has been around for many years in the real estate industry. This real estate company cut its teeth offering homebuyers an online platform to shop for homes. Zillow, similar to Redfin, took off as technology become more widespread throughout the real estate world. Everyone started using their app directly from their smartphones for ease of use. Professional companies that buy houses even started using it. Now, people are using Zillow to browse 3D virtual tours of properties for sale.
From the seller’s side, Zillow started making offers on homes to buy themselves. This was called Zillow Offers, however, they have since shut down this service. Some people in the industry think that they bought too many houses at prices that didn’t support resale values. Have you ever typed a property address into Zillow and gotten a completely incorrect ‘Zestimate’? That’s likely how they got themselves into that pickle.
Opendoor entered the iBuyer market with a more refined approach. While Zillow offers dozens of features for buyers, renters, landlords, and sellers, Opendoor focused primarily on sellers. They want to buy your home for cash and nothing more! However, make sure to read between the lines when to avoid hidden fees that companies like Opendoor could tack on later.
This iBuyer hasn’t suffered as much turbulence lately that Zillow has. Currently, this is the only option of the two. Plus, Opendoor specializes in buying houses… one would assume they know what they are doing at least slightly. Of course, take working with large corporate iBuyers with a grain of salt when you do!
Opendoor is better than Zillow
You can sell your house directly to Opendoor. They make the home-selling process fairly straightforward. Again, this is handy if you know absolutely no one in the town where you are selling your property. Don’t be shy about trying all avenues, including Google and Yelp to find other home buyers in your area that are local. Overall, Opendoor seems decent to sell a home to.
Selling Your House to an iBuyer like Opendoor
Before jumping into a home sale with iBuyers like Opendoor, you must be prepared. Although they are a large company, there are still items to make sure don’t get missed.
Tip 1: Check if Opendoor actually buys in your area. You may find them coming up in the online search results for local homebuyers but that doesn’t mean they purchase properties in your area. This also changes constantly. Opendoor may buy houses in your town today, but not tomorrow. Don’t get the rug pulled out from under you.
Tip 2: Make sure you ask for a reasonable upfront deposit. It’s common for home sellers to request large earnest money deposits in real estate transactions because it adds skin in the game for the buyer. Just because Opendoor has a well-known brand name doesn’t mean they can skimp out on putting a deposit down to purchase your home.
Tip 3: Express your selling timeline to them. If you need to sell your house by a certain date, let them know. Similar to local homebuyers, iBuyers should be able to accommodate your schedule. Some homeowners need a quick sale because they are relocating and feel stressed. Selling a home is hard enough. Combine that with moving far away and you have a recipe for stress soup.
Deciding Between Zillow and Opendoor
First off, make sure the iBuyer is still buying. Zillow doesn’t purchase homes currently but they likely will again at some point. It helps when the real estate market is going up. Once values tank, companies get stuck holding the bag.
“When the tide goes out, you’ll see who is swimming naked.” – Warren Buffet Consider all your options when trying to sell your next home. There are real estate agents and investors that can likely help you reach your goal while providing a more hands-on and intimate service. However, if they are your only options, review the pros and cons of Zillow vs. Opendoor. Currently, Opendoor is your winner when selling a house since they are buying.