Which is Better for Home Sellers: Zillow or Opendoor?

Which is Better for Home Sellers: Zillow or Opendoor?

When it comes to selling your home, you may be tempted to compare Zillow and Opendoor, but it is important to understand that these services operate under fundamentally different business models. Zillow primarily focuses on connecting property owners with real estate professionals and collecting market data, while Opendoor specializes in buying homes through a bidding system. Both platforms offer unique advantages, but the choice depends on your specific needs and circumstances.

About Zillow and Opendoor

Zillow is a widely recognized online real estate marketplace that offers several services. One of the core services is connecting property owners with real estate agents, brokers, and landlords. In this context, Zillow acts as a marketing platform, helping property owners reach a broader audience of potential buyers or renters. The platform also collects detailed market data, which it makes available to consumers and professionals to aid in making informed decisions about home buying or selling.

Opendoor, on the other hand, specializes in buying homes directly from property owners. The process typically involves Opendoor initiating a bidding system to determine the highest offer for a property. If Opendoor wins the bid, they purchase the home and charge a fee that is comparable to a standard real estate agent’s commission. This model resembles a large-scale buy-fix-and-flip platform, allowing for efficient and hassle-free home sales.

Options for Home Sellers

If you are considering selling your home and are unsure about the best option, it’s advisable to try both Zillow and Opendoor. Additionally, eXp Realty offers a unique service where property owners can receive offers from a variety of investors and choose their closing date, making the process straightforward and flexible. You can easily find an eXp Realtor in your area by searching online.

Generally, selling your home through traditional means will yield a higher profit. However, certain situations may make an instant offer appealing. If you need to sell the home quickly or if the house is in poor condition, an instant offer from Opendoor or Zillow may be the right choice. In these cases, the offers from investors are typically around 70-80% of the market value.

Market Considerations and Comparisons

When deciding between Zillow and Opendoor, it’s crucial to consider several factors:

Selling Speed: Opendoor offers quick and cash-based transactions, often closing within 10 to 60 days. However, this speed comes with additional repair fees and charges, which can range from 7.5% to 20% of the fixed-cost repair items found during the inspection. Costs and Fees: While most realtors charge around 6%, Opendoor initially offers a higher fee model, which has been revised due to legal and financial pressures. The FTC has fined Opendoor for misleading consumers, and the company is now required to stop this practice. Market Research: Both Zillow and Opendoor collect valuable market data, but it is essential to perform comprehensive research in your specific area to understand market conditions and property values accurately. This research, along with the offers from these platforms, can help you make an informed decision.

Conclusion

As John Durham might argue, relying on a single source for information is insufficient. Instead, it is crucial to consult multiple sources, including Zillow, Opendoor, and local real estate professionals. By averaging the data from these platforms and comparing it with real-world market conditions, you can make a more accurate assessment of your home's value.

Ultimately, the decision between Zillow and Opendoor should be based on your specific needs and circumstances. For a quick, cash-based sale or a real estate professional-led process, both platforms have their merits. By considering all factors and conducting thorough research, you can ensure that your home selling strategy is aligned with your goals and the current market conditions.