It’s Finally Happened…
The “game changer” that you have been hearing about has finally become reality. It’s what Gary Vaynerchuk would describe as a massive “disruption” in the Residential Real Estate game. In my humble opinion, it will almost certainly be one of the top 10 Real Estate Stories of 2015! Here’s why…
Not to promote their product, but it does bring to the forefront a product on a mass scale that allows a homeowner the ability to quickly sell a unwanted property online without the traditional hassles of listing, and waiting for their home to sell, within 3 days.
I couldn’t really find a great way to write the above sentence in such a way to convey the importance of this. The “selling mass scale quickly thing” isn’t really new. However, here are the three things I am trying to say!
- Completely computerized ability to sell 24/7 Online. Receive an offer at any time.
- Although only in Phoenix it can quickly be scaled to a national level
- Promises to close in 3 days. Think of it. You are online Monday, by Friday, you are closed.
(See related post from “The Notorious Rob” Blogpost “Opendoor.com and the Power of Radical Questions”)
Another reason why I believe this will be one of the “Top Sites to Watch” is because the sheer amount of money behind this. Aided by Khosla Ventures , they will have a lot of money to “throw at the problem” of using technology to purchase real estate. Their page is very clear about their goals.. Admirable as it is, it cannot help but cause a slight chill on the spine of the agent who is unprepared!
At KV(Khosla Ventures), we fundamentally like large problems that are amenable to technology solutions. We seek out unfair advantages: proprietary and protected technological advances, business model innovations, unique partnerships and top-notch teams.
Opendoor Now Available in Phoenix
While Opendoor.com now services the greater Phoenix area (population 1.5 million); it serves as a perfect “testing ground” for the system. Easily accessible records, data and a steady market all spell “perfect weather” for a test of this idea that could revolutionize the industry.
While the promise of a close of a 3 day close if necessary comes with a 5.5% “Convenience Charge” and closing costs hardly seem much different than that of a listing agreement, it is the concept that is the game changer.
Wait a Minute! So What’s The Difference?
The primary reason why I feel this is going to be one of the most talked about stories in 2015 is not necessarily because it will be a raving success. No, the reason why is that if it becomes halfway profitable in Phoenix, this model could be easily scaled. If successful, there is enough money behind it to bring it to a national stage.
If it becomes a successful test, it will become We Buy Ugly Houses prettier, and sexier cousin.
What does this mean to you?
If you are a Realtor®, you must be aware that this type of service is a wanted and needed service.
How do I know this? Why on earth would investors spend nearly $10 Million to create the infrastructure, then financial backing to actually perform?
The answer is obvious. They feel it is a moneymaker. You must understand that your clients (yes, even yours) are looking at services like this that will help them “just get it over with.”
To the practitioner of The Red Pill Sales System, this has no effect. As an Investing Realtor® or Wholesaling Investor, you needn’t worry about losing massive amounts of your business to OpenDoor or any other competitor. It is simply a fact of life. As the market increases, there will always be more people who want to enter the business!
Competition is going to be tougher as the new year comes along. Your job as an Investing Realtor® or Wholesaler is to control the inventory! Just remember, it’s easier to control 15 properties than 5 buyers!
What I’ve Done!
I’ve extended a invitation to the good folks at Opendoor.com to tell us about their unique service, I truly am fascinated to see the results of their experiment… Hopefully they will accept my invitation to be interviewed on The Red Pill Investor Podcast! Either way, I will certainly watch , wait, and see what happens in the Phoenix Market!
**Special thanks to friend of the show Vince Davis for bringing this to my attention! If you ever need an awesome Investing Realtor® in the Phoenix area, he’s a great guy to know! **