Yes, I know that and it's part of my mission to explain to people why they are better off using a "traditiona" broker to sell their home. 

There is No Such As A Free Lunch.  Most rational people understand this.  Some quickly.  Some sooner or later.  Some while sitting in the corner crying "what went wrong?".

I did - I have had sellers ask for the Offer from them and it always amazes me at their ridiculous fees. 

What's worse, they buy low and then they turn around and sell lower as well, impacting the community values. I'm dealing with one of those right now! The closest comp for one of my u/c listings is an open door sale - and we are fighting that with the appraiser. RIDICULOUS!

Correct, I've seen about the same amount, described in the contract as a 'service fee'. One recent offer, was 10%, $30,0000 on a $300,000 gross offer, i.e. the net was $270,000. 

Plus repairs or some improvements.

I don't know how they get away with it. "I'm offering you $300,000 for your property" (less $30,000, less repairs/improvements in small print elsewhere in the contract).

Most sellers think they know what they are doing and  they want to believe that they know.  An investor has to assume that there may be major repair before they can put the home back on the market.  Plus, they have to make a profit, too.  In conclusion convenient is costly. 

Only the person making the decision to go that route knows ... or perhaps they don't know because it was not fully explained or they might have been some deception taking place. 

The old adage of "If it sounds too good to be true, you are going to get taken." comes to mind with this scenario Annette.

I'll go with #3 Annette Lawrence , Palm Harbor, FL 727-420-4041 

The "Easy Button" isn't cheap!

Yes.  That's why Open Door is having a hard time.  From a newsletter I receive:

According to Bloomberg News:

Opendoor, began firing 50 of its roughly 1,300 employees in June, according to people familiar with the matter.

And it has asked between 200-300 people in offices across the country to relocate to its Phoenix location.

* Note Phoenix is their base of operations - their California offices include, Los Angeles, Sacramento and the Inland Empire.

Those employees will have about 6-9 months to decide whether to make the move or leave the company.

A spokeswoman for Opendoor said the company was “streamlining operations in our Phoenix office” to improve customer experience as it continues to grow.

“Streamlining”? Isn’t that often “corporate speak” for downsizing?

There’s also some news for the tech” Opendoor has ended its policy of offering free lunch, according to un-named employees.

The company did not comment to Bloomberg on the job cuts.

A spokeswoman said Opendoor will provide "subsidized lunches" (not free?) at all of its offices with more than 100 people.

3. they've been hood winked

If you are an Agent in California, I strongly recommend you attend The Career Compass (TCC) Real Estate Training Seminar. The last 2 seminars (Sacramento & Pasadena) have featured an Open Door Agent "on stage" debating with the host of "TCC". The insight into Open Door was amazing...plenty of agitated Agents in the room to say the least. The upcoming seminar schedule can be found at http://www.thecareercompass.com/training-seminars/

This concept has had many forms since I began listing & selling in '74. The adage always read the fine print has applied every time. None offer something for nothing Annette! 

Yes, I did.

Part of the business model, we went through this in detail at a resent workshop at KW.

And we are working to provide an alternative to those who are interested in this route.

yes, I'm aware of other costs....and the bottom line is it's a better decision to hire a real estate agent....

Door Number THREE Monty!
Hoodwinked!

 I have a deal for you!

The pick-pocket keeps current on what pockets, where and when type data...Traditional Real Estate practices are so simple and productive. I don't mind adding technology to it but everything else (the core) delivers just fine 

Annette,

Yes, I knew.  And it is important to do what Nina Hollander .  I bow to her brilliance!

I'll go with "E. All of the Above." I like all of your answers.

Not a bargain at all and they can charge whatever the market will bear if it's not regulated.

I did not know that.

Wholesellers want to make a quick profit.

bandit sign, not dealing with licensed professionals. Many towns do not tolerate posting. 

After they close and realize #3 they've been hood-winked

Home sellers need to be alert.

Looks like a wolf in sheep's clothing. Sellers will get wise to this, unless, flat out desperate to unload a loser property

I just had such a case, older owners, a home in need of repair, they needed to sell quick due to health. They chose a buy now company who offered them less than half of what it was worth even at a quick retail sale. Lucky their neighbor stopped it an called me. I am writing my blog today about it. 

Nobody buys for resale at retail!

There always has been and always will be sellers who are ripe for the We Buy Ugly Houses sales pitch. Open Door and other iBuyers will find some desperate sellers to work their magic upon until their deep-pocket venture capital investors realize they have made a mistake and pull their funding.

Didn't know that

#3

They also seem to price the flipped homes at the high end of the spectrum.

Yep, what a ripoff! 

it's never been a bargain, it's sometimes been an out for desperate people in desperate situations.