Opendoor’s Purchaser Agent Fee Benefit: DelPrete

Are you receiving Inman’s Dealer EdgeBe sure you’re subscribed right here.

This submit has been republished with permission from Mike DelPrete.

Even in a cooling market, Opendoor’s purchaser agent commissions — the payment paid to a purchaser’s agent when a home is bought — stay considerably decrease than market averages.

Why it issues: Leveraging its powers of scale, Opendoor is pushing down purchaser agent commissions to cut back its bills — a pattern that started in early 2020.

  • Opendoor’s purchaser agent commissions vary from 0.5 % to 1 % decrease than the market common (usually, however not at all times, 3 %).
  • At scale, this might save the corporate over $50 million in fee charges yearly.

Dig deeper: The info above, collected from Datadoor.io, seems to be at over 9,000 listings in Opendoor’s 20 largest markets as of Sep. 2, 2022.

  • There have been additionally 226 listings with purchaser agent commissions above 3 % — usually on homes which might be struggling to promote.

unnamed 77

The underside line: Opendoor is deftly turning the customer agent fee right into a aggressive benefit to optimize its enterprise mannequin.

Mike DelPrete is a strategic adviser and world skilled in actual property tech, together with Zavvie, an iBuyer provide aggregator. Join with him on LinkedIn.

Supply hyperlink

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button