Over the last few years Opendoor, along with other real estate companies, has heavily worked the iBuyer business of buying homes directly from sellers to turn the property around, and then resell it back to a home buyer. All this at a profit for Opendoor. On the surface, the concept of a large company with a deep well of funds and resources, could and should streamline the home selling process and provide an alternative to the status quo.
But what are the benefits of selling with Opendoor? The company promises a much easier transaction, with sellers getting to choose when they move out, and without the usual chores of selling a home. All of this convenience, while also saving thousands in service fees, while getting MORE on a home sale compared to the traditional model.
And, according to the Federal Trade Commission, Opendoor sold the concept and their services to potential sellers as convenient, hassle-free, and more profitable than the traditional way to sell a home. But the FTC today slapped Opendoor Labs Inc, based in Tempe, Arizona, with a $62 million dollar fine for "cheating" sellers out of thousands instead.
The quote from the FTC said in part "Opendoor promised to revolutionize the real estate market but built its business using old-fashioned deception about how much consumers could earn from selling their homes on the platform" and "There is nothing innovative about cheating consumers."
Read the complete statement from the FTC here: FTC Takes Action to Stop Online Home Buying Firm Opendoor Labs, Inc. from Cheating Potential Sellers