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Here's how to sell your home through an 'iBuyer' like Zillow or Opendoor

New option could save home sellers time and hassle
Posted at 9:34 AM, Apr 18, 2019
and last updated 2019-04-18 13:25:44-04

A relatively new concept has hit the Denver real estate market. It's called an "iBuyer." Internet companies Zillow and Opendoor are now buying and selling homes in the metro area.
"You can sell to us on your timeline, no paying two mortgages, and you’re on to your next home whenever is convenient for you," said Opendoor Denver general manager P.J. O'Neil.
Like Opendoor, Zillow Offers promises a predictable timeline for home sellers. Home owners simply visit the sites and request an offer. As part of the process, the companies may suggest various repairs or improvements that the seller will either have to pay for, or that may affect the amount of the offer.
Real estate brokers in Denver have mixed opinions on "iBuyers" but say they can be the right option for certain sellers.
"I think the good thing for the seller is knowing that they have an offer, however I do think sellers need to know they aren’t going to get as much money as they would on the open market," said Natalie Hengel, a broker with 8 Z Real Estate.
Zillow and Opendoor say their offers are competitive, and they're not making big profits on the homes they resell. A review of recent data shows the companies typically relist the homes for around $10,000 to $20,000 more than the price they purchased the home for.
"We’re using comparable homes in the area to price the home, so often we’re selling the home for about the same amount we bought it for," said O'Neil. "We really make our money off the fee we charge to sellers, which is comparable to what agents are charging in the market," he added.
Opendoor allows potential buyers to tour their homes at their convenience using an app on their phone to unlock the door. The homes are shown without any furnishings, as the sellers have already moved out.
Zillow still lists all homes on the market, but specifies which properties are "owned by Zillow." The company says nationwide, nearly 40,000 homeowners requested an offer on their home through Zillow in 2018.
Opendoor launched in the Denver metro in October, 2018 and has bought and sold about 120 homes in the metro area so far.