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so opendoor.com is interesting. decided to look at what it had for sale in portland near a national park i fancy and found this:
not my cup of tea but it got me wondering; whats the spread? what did they pay for this house, that they can sell it for $397k and somehow turn a profit?
zillow to the rescue.
look at this absolute nightmare:
they bought that house for $382 about 6 months ago. 3 weeks later its back on the market with a 50k markup. ok cool except every 3 weeks they have dropped the price.
its currently at listed at $15k more than what they paid for it.
they have paid about $2000 in property taxes alone.
i used gpt to get a handle on what the total cost to opendoor would be on a $382k purchase:
so lets call it $388k. here comes the stinger:
Based on the information from my search and your details, here's Opendoor's net profit/loss calculation: Opendoor's P&L on Your Transaction:
Revenue:
Costs:
Total Estimated Costs:
so basically this might be another zillow disaster in the making. i dont see how they can survive in a bearish real estate market where they are losing like 7% on every round trip transaction.
not my cup of tea but it got me wondering; whats the spread? what did they pay for this house, that they can sell it for $397k and somehow turn a profit?
zillow to the rescue.
look at this absolute nightmare:
they bought that house for $382 about 6 months ago. 3 weeks later its back on the market with a 50k markup. ok cool except every 3 weeks they have dropped the price.
its currently at listed at $15k more than what they paid for it.
they have paid about $2000 in property taxes alone.
i used gpt to get a handle on what the total cost to opendoor would be on a $382k purchase:
- Your sale price: $382,000
- Opendoor's estimated additional costs: $3,820 - $7,640 (1-2% for cash transaction)
- Opendoor's total investment: Approximately $385,820 - $389,640
so lets call it $388k. here comes the stinger:
Based on the information from my search and your details, here's Opendoor's net profit/loss calculation: Opendoor's P&L on Your Transaction:
Revenue:
- Sale price: $397,000
Costs:
- Purchase price paid to you: $382,000
- Buyer closing costs when they purchased (1-2%): ~$3,820 - $7,640
- Property taxes paid: $2,000
- Seller closing costs when they sold (1-3%): Closing costs vary by transaction but are typically 1-3% of the home sale price Opendoor Fees: Here's What It Really Costs | Real Estate Witch = ~$3,970 - $11,910
- Real estate agent commissions when reselling: In a traditional sale, the seller pays commission fees for both their agent (the "listing agent") and the buyer's agent (typically 5-6%) = ~$19,850 - $23,820
Total Estimated Costs:
- Low end: $382,000 + $3,820 + $2,000 + $3,970 + $19,850 = $411,640
- High end: $382,000 + $7,640 + $2,000 + $11,910 + $23,820 = $427,370
- Loss of $14,640 to $30,370
so basically this might be another zillow disaster in the making. i dont see how they can survive in a bearish real estate market where they are losing like 7% on every round trip transaction.
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