Charlotte’s newest startup homebuyer has entered the market in a big way.
About a month and a half after its soft-launch locally, Opendoor has already closed on more than 60 houses in the Charlotte area, the company told the Agenda. Its first came less than 24 hours after opening for business in the city.
Opendoor is now starting to list these homes for sale. Five are currently on the market, with more expected in the coming days.
Opendoor, a Silicon Valley unicorn founded in 2014, joins a rush of startup companies looking to cash in on Charlotte’s booming real estate market by making the home selling process easier.
Knock.com and OfferPad have already begun buying and selling homes in Charlotte. Other entrants, including Zillow, could emerge in the coming months.
Here’s how Opendoor works.
People interested in selling their homes fill out an online form with the address, answer a few questions about features, needed repairs and renovations, and then get an offer price by email.
If the homeowner wants to move forward, Opendoor will send an inspector by and the two sides will determine a closing date. Opendoor buys the home in cash, makes any repairs needed and puts the house on the market.
The company makes money from a commission on the sale, which averages 6 percent.
This all happens fast. Opendoor’s offer on this Huntersville home was accepted on April 20, and the homeowner requested a closing date of May 21.
Some minor repairs were made, and the home was listed on June 4.
Opendoor wants to make Charlotte a key market.
Charlotte is the eighth market for Opendoor, and the company has ambitions to grow quickly.
It’s already growing faster than Raleigh. When Opendoor launched there, the company bought 111 homes in the first 100 days. Charlotte is moving at a faster pace.
Opendoor currently has 12 employees in Charlotte — real estate experts who help appraise homes, and people who help determine what repairs to make on homes. The company expects to have 25 by the end of 2018 and could hire up to 100 employees in Charlotte in the next few years.
In Dallas-Fort Worth, Opendoor spends more than $1 million per month on contractors to fix up homes, and is the top payer of real estate agent commissions, the company says.
Opendoor wants the same to be true in Charlotte.