iBuyer Bumps Up Price Threshold to $800K

November 14, 2019

Opendoor announced that it is expanding to the Los Angeles market and says it will offer up to $800,000 for the homes it purchases there. The iBuying firm previously said that $600,000 was the highest price it would pay for a home.

iBuying firms are growing their presence across the country, either Wall Street–backed firms or those offered through real estate brokerages. iBuyers offer homeowners instant cash offers for those who desire to sell their home quickly. The instant offers are touted as “fair market” offers, but home sellers tend to pay more in commissions for the convenience. Opendoor offers cash offers to eligible homes within 24 hours.

Opendoor’s $200,000 increase in its price ceiling more greatly reflects price points in Southern California, its company officials say. Opendoor will purchase homes between $200,000 to $800,000 that were built after 1950 in Los Angeles, Orange, and portions of Ventura counties.

Opendoor has already  worked with more than 600 local buyers and sellers in Riverside County since September 2018, also in Southern California.

“The traditional home buying and selling experience is riddled with stress and uncertainty, particularly in a competitive real estate market like Los Angeles,” Andy Swanton, Opendoor’s general manager in Los Angeles, noted about the company’s entrance into the market.

Opendoor launched in 2014 in Phoenix. Since that time, it has expanded to more than 20 major markets across the country.