Real estate has never been more hectic.
Over the past two years, we have seen increased demand coupled with inventory shortages, supply shortages, and home prices that have skyrocketed. Therefore, the experience of buying a home continues to be plagued by instability and obstacles. However, Opendoor, a household name in the iBuying space, has set its sights on providing simplicity and perhaps setting itself up for a brighter future as the iBuyer industry takes a hit and Zillow drops the Zillow Offers program.
Opendoor has long been a popular resource for those looking to buy or sell a home. With an intuitive platform and extensive inventory, this online residential real estate tool has been helping connect buyers with homes since 2014. Now, they’re looking to make the hardest part of the process easier as they evolve their business model to suit a changing market. slowing down with their new financial tool, they say, will make the pre-approval process a breeze.
Introducing open door finance
With a mission to make housing affordable for everyone, Opendoor has innovated an all-in-one app to find the perfect mortgage, no matter your spending power. After going through all the ups and downs to find the perfect home, users simply answer four questions to get pre-approved options in minutes.
CandysDirt.com caught up with Heather Harmon, Director of Opendoor Finance, to learn a little more about this new app.
“The real estate industry is antiquated and the mortgage pre-approval process is no exception,” says Heather. “In fact, it is the least optimized part of the transaction. And consumers are looking for expert knowledge and easy solutions to navigate the complex mortgage process, especially in these fluctuating market conditions.”
Heather believes this technology will also have broader market implications beyond end users. Since the app streamlines much of the home buying process, she thinks it could alleviate some unnecessary competition. This is especially helpful when interest rates start to rise and uncertainty abounds.
“With interest rates rising, having a comprehensive view of what you can afford at any one time is incredibly important,” says Heather. “Because even a small change in interest rates can affect a purchase decision and cause a fight between buyers.”
Evolution of the iBuyer
Recently, iBuyer platforms like Opendoor have been operating at a loss. In fact, last November, Zillow, one of the nation’s leading iBuyers, went out of business altogether. We also recently received market research from YipitData that says Opendoor made losses to the tune of 42% on the houses it sold in August.
If this trend continues, these residential real estate platforms must be creative in creating products that meet the needs of the market. Maybe this new Opendoor offering will help you weather the headwinds of higher interest rates and a cooling market.