In case anyone was wondering, Opendoor is definitely a scam

Listen I realize my title is a bit melodramatic because at the end of the day this is just one person’s experience, but if you read other accounts in this sub you will certainly find a pattern. And I want to be clear that I don’t believe the “scam” involves the service fee, because that’s very clear upon initial offer. Predatory and targeted toward desperate folks? Perhaps. But not a scam. Here is how they get you after acceptance of the initial offer…

Repair addendum

This is the most well-documented aspect in this sub. Language in the due diligence inspection report will be taken out of context, exaggerated, or otherwise used to diminish the offer without transparency. It does not matter if you disclosed and photographed the issues when you created your home’s profile on the app (which should be accounted for in the initial offer). They will not provide an itemized list of repairs deemed necessary or how much they estimate the cost to be. It’s just a number. Through great effort (see next section), I was partially successful in negotiating on what I believed to be bogus repairs. But not fully.

Being unreachable

It is exceptionally difficult to speak to a person. They will take days to respond, making it almost impossible to negotiate. I believe this is by design. They lure sellers in with the promise of a quick close, and then create an artificial sense of urgency by just… not answering the phone. I was completely unable to reach my Opendoor rep, even after trying via phone, voicemail, email and text message. I had to escalate my inspection review multiple times through the technical support number, because even though they will quote you an hour wait time, they do actually pick up. The app says that step takes 1-2 business days, but even after escalating twice it still took more than a week. When I finally spoke to the person handling my sale they claimed they had been trying but unable to reach me due to issues with their phones. Yeah right.

Bad faith closing estimate

Here’s the real doozie. Prior to signing an initial offer, the app emphasizes a price “after all fees and costs” and provides an estimate of closing costs. If you’ve bought/sold a house, you understand why closing costs are necessarily an estimate at this stage, those can’t be fully known at the onset. That estimate is supposedly based on the closing costs of similar and recent home sales in your area. A seemingly reasonable method. However, Opendoor uses language in their contract addendum that makes the full cost of transfer and recordation tax the responsibility of the seller. This is NOT the convention in my state, where those taxes are ordinarily split between buyer and seller. So their closing estimate is based on parameters they choose not to follow! When I saw that language I asked my Opendoor rep to confirm the closing estimate I received in the app, which they did. When I asked more questions about how the addendum would impact closing, I was directed to the title company. It was also very difficult to get someone to respond at the title company, but after several days of hounding they did generate a net sheet for me. Lo and behold, the total cost to me at closing would be TWICE what Opendoor estimated because I was fully responsible for the tax under the terms of the addendum. This was not a rounding error. It was a grift.

Had I not doggedly pursued each of these gotchas it’s very likely the full impact would not have been revealed until just before close. At that point people may have plans in place that cannot be changed. They may not have a choice but to accept terms thousands or even tens of thousands less than they were originally offered. This is not a company that does business honestly and I would recommend avoiding.

submitted by /u/servajugum
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source https://www.reddit.com/r/RealEstate/comments/1umez2g/in_case_anyone_was_wondering_opendoor_is/