Build an app like Opendoor or Opendoor clone app to change the way of buying and selling homes
You can think of earning more profits in real estate business by building Opendoor clone app for your customers to make selling and buying of homes more easy.
Sam, a 46-year-old systems administrator at a reputed company, got the opportunity to transfer from Phoenix to Austin. The family put their home on the market at a price of $335,000. Even after 3 months, they couldn’t get any offer from the potential buyers. Even after the realtor’s assurance and cutting down the price they were unable to sell their home. However, they decided to try one year later by going to Opendoor this time.
» Idea of Opendoor
There are many investors are putting another large bet on a startup expecting to reinvent a decades-old method into something that’s near-instant. This time emptying $325 million into Opendoor which is a company that wants to bring the complex process of buying or selling a home to the process as simple as booking a cab.
Opendoor is one not so different from a customer theory that’s bloomed into businesses worth tens of billions of dollars. Consumers dislike complicated processes and are ready to hand off those processes to technology companies to make those processes simple.
» Working of Opendoor
Opendoor is a San Francisco-based startup. It helps people to buy homes for cash based on a black-box pricing algorithm. The company bets that there are hundreds and thousands of people who value the certainty of a sale over getting a very high price. Opendoor makes money by charging a service fee of 6%. This process is similar to how the standard real estate commission works. They also charge an additional fee that varies with its assessment of the riskiness of the transaction and brings the total charge to an average of 8%.
The company then makes fixes approved by inspectors and attempts to sell the homes for a small incentive. The company allows buyers to shop on their own timetable. They can use the key codes for entree into the properties. They also get a 30-day guarantee that Opendoor will buy it back if they’re not happy. Opendoor also provides a two-year warranty on the electrical system and major appliances.
Eric Wu, the co-founder, and chief executive of Opendoor is obsessed with the pain points of moving.
Sam and his wife filled out the online questionnaire of Opendoor. And this time, within a few days, their house was sold at $334,000.
Sam’s wife Julia was pleasantly surprised at the offer. They closed on the deal and after that, they soon were able to purchase a new home at Austin.
Recent Fundings of the Opendoor app
From a very long time, there are small often less-than-reputable outfits that buy distressed homes for cash. Wall Street firms, prominently Blackstone, have been opportunistic purchasers of residential real estate. Opendoor, however, is making another bet. Wu thinks Opendoor can buy and sell homes, in abundance, by exercising the type of data analysis that has been crucial to many Silicon Valley companies. At the same time, he is targeting the broad middle of the market. Opendoor deals in single-family homes built after 1960. The homes are usually priced between $125,000 and $500,000. The company has no concern in distressed properties, which require too much work, or in luxury properties, which are more difficult to value.
Buying up residences to make a market is capital-intensive and also has great risks. Opendoor has generated $110 million in assets from Khosla Ventures, GGV Capital and Access Industries. The company earned a valuation of $580 million in the year 2016.
Opendoor has also raised more than $400 million in debt to purchase the homes. The company has to price the homes that they have bought accurately in order to succeed. They even have to sell them quickly to minimize the costs of carrying them. As interest rates increases or housing values fall, the company has to figure out how to respond. The company may charge a higher fee when the market risk increases. This is its own version of surge pricing.
Dan Ariely, a behavioral economist who is not associated with Opendoor, thinks that people will be prepared to sell their homes for less in return for the lessened hassle and more specific timing. This is very ideal and especially true during times when home sales slow. He thinks the less liquid and slow the market is, the more people who are selling are expected to value this process.
Buying and selling of homes can be one of the more severe ones as it requires a lot of shifting pieces and organizing multiple time tables and schedules. Opendoor’s approach is that it can produce a sizable business by cutting that time and energy cost to zero. They can efficiently build a new technology-powered business model in the process, just like Uber or Airbnb.
Scope of building Opendoor clone app and the Expansion of Opendoor
Opendoor thinks and hopes to grow to 50 markets by the end of the year 2020 with this extra financing. Currently, Opendoor is thriving in 10 markets., The company also claims that it now buys more than $2.5 billion in homes on an annual run rate.
The company has raised a $325 million funding round co-led by General Atlantic, Access Technology Ventures and Lennar Corporation. Andreessen Horowitz, 10100 Fund, Coatue Management, and Invitation Homes were also a part of the round, along with the existing investors Norwest Venture Partners, Lakestar, GGV Capital, NEA and Khosla Ventures.
Opendoor has raised a total of $645 million in equity and $1.5 billion in debt.
According to CEO Eric Wu, there’s a lot of tailwinds with people wanting to transact with their mobile device. The same scenario can be seen with Uber, Lyft and Amazon. The CEO thinks that the future of real estate will be on-demand. This is what Opendoor keeps as its centerpiece. They are making the transaction real-time and instant. Opendoor is no doubt transforming the face of the real estate industry.
Features of Opendoor app that you can add to your own real estate app
» Provide Hundreds of Housing Listings for buying and Selling
Adding this feature in your real-estate app is a must. You must provide your user with thousand of options to explore and choose from. In the case of a buyer, they must get enough choices to explore and for sellers, it is important to get them a great offer. If you are thinking to build real estate apps like Opendoor, then presenting features that assist users to find a right house as per their requirement is what makes your app desirable.
» Present Adjustable Search Options
Users always prefer flexibility. In case of the search options also, the users need filter by bath, bed, or price to check only those houses which match their criteria. Opendoor homes for sale are easy to explore with a map or list view. You can allow your users to save and review a listing later.
» Immediately seek the Home Experts
While developing real estate apps like Opendoor, you need to incorporate the feature in which users can spontaneously connect with home experts for any of their doubts, queries, and confusions.
The home experts can also assist the users with information about their favorite listings and deal with any problems that occur while finding the right house.
You can also include directions to let your users know if there are any open houses for sale in the close locality.
You should also add features like allowing the buyers to check out high-resolution photographs and at-a-glance property details of every home. You can also let the users have instant updates regarding the properties, cost changes and notifications.
All in all, you should build an app that can provide your users with a seamless experience. And we are here to help you out with the same.
Connect with us to know more regarding the features and cost of development of an on-demand real estate app like Opendoor.