Pruitt Miller Realty Group: 704.608.2794 | Contact Us

Charlotte University, Ballantyne and Lake Norman Homes | 704.608.2794Charlotte University, Ballantyne and Lake Norman Homes | 704.608.2794

Specializing in homes in University City, Ballantyne and Lake Norman areas of Charlotte

Charlotte University, Ballantyne and Lake Norman Homes

  • Menu
  • Home
  • SEARCH
    • Advanced Search
    • Search by School District
  • Communities
    • Charlotte – North
    • Charlotte – South
    • Uptown Charlotte
    • Ballantyne
    • Waxhaw
    • Concord
    • Lake Wylie & Steele Creek
    • Harrisburg
    • Weddington
    • Mint Hill
    • Matthews
    • Huntersville
    • Union County
  • Buyers
    • Tips for Buying Homes in Charlotte, NC
    • First Time Buyers Guide
    • New Home Communities And New Home Builders
    • Retirement Communities in Charlotte – 55+ Communities
    • Buying For Investment
    • Luxury Homes for Sale in Charlotte NC
    • USDA Homes For Sale
    • 9 Mistakes Home Buyers Make And How To Avoid Them
  • Sellers
    • Sell My Home Fast Charlotte NC
    • Home Sellers
    • Current Market Reports & Home Sale Data
    • Charlotte FSBO
    • Preparing Your Home
    • 14 Costly Mistakes When Selling
  • Charlotte
    • About Charlotte NC
    • Relocating To Charlotte NC
    • Local Links
  • About
    • Meet The Team
    • Success Stories
  • Resources
    • Free Reports
    • Apply Online
    • Down Payment Assistance
  • Blog
  • Our Featured Properties

The Truths About Selling to Opendoor in Charlotte NC

why you want your home to sell as quickly as possible - charlotte realtor

 

This story was updated with new information on Monday, August 1, 2022

Do you know the truths about selling to Opendoor in Charlotte NC?  Whether it’s TV, radio, billboard or print ads, you probably have seen and heard advertisements by direct home buying companies such as Opendoor, Offerpad and others. These companies promise to give homeowners a guaranteed or instant cash offer for their home.  They promise the convenience of a hassle-free home sale.  But at what cost? Just how much is this convenience really worth?

According to Inman News, the Federal Trade Commission recently took action to stop online homebuying firm Opendoor Labs, Inc. from cheating potential sellers with misleading claims.  The company will have to pay a $62 Million Dollar fine and was ordered to stop deceiving consumers about the supposed benefits of its service.   At issue was the FTC’s findings of Opendoor cheating potential home sellers by tricking them into thinking that they could make more money selling their home to Opendoor than on the open market using the traditional sales process.  However, in reality most people who sold to Opendoor made thousands of dollars less than they would have made selling their homes using the traditional sales process.

So just how much is the convenience advertised by iBuying companies such as Opendoor really worth?  We sounded the horn back in 2019 and published actual sales data which is shown below:

 

Is the convenience of an instant cash offer from these companies worth $12,568?  If so, you’re in luck!  Because that’s the average amount that Charlotte homeowners have undersold their homes to Opendoor and others during the most recent six-month period as of the original publishing date.  The average margin is even wider with their competitor Offerpad.  It’s supposed to be a new high tech way of selling a home.  However, the concept is not new at all.  You’ve likely seen the “We Buy Ugly Homes” slogan on signs and highway billboards. Such offers come from real estate investors who buy homes from sellers at steep discounts just to turn around and re-sell them for significant profits. Direct Homebuyer offers are just a high tech approach of doing the same thing.

These companies are betting on convenience being a primary motivation for many homeowners.  However, it’s very important to know and understand the terms and conditions of these offers because there are always “conditions”.

Let’s look at the actual cost of this convenience compared to a traditional sale. First lets set the record straight with the Opendoor comparison in the table below. Opendoor uses national averages which include high priced markets in California, Arizona, Florida and other regions. You should know that all real estate is local. Since we are the local real estate experts in the Charlotte area, we will deal strictly with actual Open Door homes for sale in Charlotte NC which you will see in the revised second table below.  But before we do that, let’s look at Opendoor’s comparison as shown on their website:


Opendoor Comparison to Traditional Offer

Opendoor comparison to traditional sale


In Opendoor’s example above, they charge a “seller fee” (i.e. “commission”) of 7.3%.  On their website, they also note that it could be even higher. By comparison, a customary commission in a traditional listing is usually around 5% to 6%. But wait! Opendoor then adds inflated allowances on the Traditional Offer side for Staging and home prep costs, Seller concessions and Homeownership and overlap costs.  We will address each of these allowances below.

Let’s address Opendoor’s inflated 2% Seller concessions allowance that was added on the side of the Traditional listing.  We pulled actual sales data in Charlotte for the last 90 days (as of 10/30/19) that includes 4,377 sales transactions.  Of these sales, less than half (43%) included any seller concessions at all. The transactions that did have seller concessions was found to average only 1/2%, not the 2% that Opendoor shows in their comparison.  Remember, we’re using actual Charlotte home sales in comparison to Opendoor’s national “estimates”.

Opendoor also adds a 1% allowance under the Traditional sale for “Homeownership and Overlap Costs”. This assumes that a seller will carry two mortgages which doesn’t often occur. However, we have entered into an exclusive partnership that eliminates this cost for our sellers for up to three months. So let’s scratch that 1% expense as well.

Now that we have removed the Opendoor “fluff” and used the actual Charlotte sales data instead of their estimates, the reality is that Opendoor’s Net Proceeds to Seller changes from a $3,400 advantage over the Traditional offer in their example above, to a $13,536 disadvantage to a Traditional offer in our example below:


 

Revised Comparison - Opendoor vs. Traditional

Traditional OfferOpendoor Offer
Offer price (1)$212,766 $200,000
Seller fees$11,702 (5.5%)$14,600 (7.3%)
Staging and home prep costs (2)$1,064 (0.5%)No prep
Seller concessions (3)$1,064 (0.5%)No concessions
Repair costsDepends on assessmentDepends on assessment
Homeownership overlap costs (4)$ -0-Choose your close date
Closing costs$2,128 (1%)$2,128 (1%)
Total costs$15,958 (7.5%)$16,728 (8.4%)
Net Proceeds$196,808 $183,272

1Actual Charlotte home sales data shows that homeowners have undersold their homes to Opendoor by an average of 6% (see table below).  The traditional offer price above reflects this additional 6% in offer price over what a typical seller receives from Opendoor.  It is also shown below in the table of published listing prices of Opendoor homes for sale in Charlotte NC.

2Local market experience has shown that a typical home seller will spend approximately $1,000 for home prep.  For the purpose of this example, we are using ½% as opposed to the 1% used in Opendoor’s national example.

3Actual market data consisting of 4,377 transactions in Charlotte shows an average seller concession of ½%, as opposed to Opendoor’s 1% used in their national data example.

4We leverage a strategic partnership which eliminates this cost for up to three months.


Here are the Truths About Selling to Opendoor in Charlotte NC

Now let’s go a step further by using actual 6-month sales data including Open Door homes for sale in Charlotte, dating back to April 2019 obtained from the Charlotte Regional Realtor Association. See the table of Open Door homes for sale in Charlotte NC below.  It will show how much Opendoor actually purchased homes for (Column A), and subsequently at what prices they listed them back on the market for (Column B). You’ll see that homeowners undersold their homes to Opendoor by an average of $12,568 (Column C) or 6% (Column D).

Open Door Homes for Sale in Charlotte NC

AddressCity(A) Opendoor Purchase Price(B) Opendoor List Price(C) Seller Undersold Amount(D) Seller Undersold %Subdivision
2823 Azalea Hills DriveCharlotte$230,000 $255,000 ($25,000)-10%Arbor Hills
2526 Cochrane DriveCharlotte$170,000 $195,000 ($25,000)-13%Meadow Hill
6155 Fazenda DriveCharlotte$185,500 $210,000 ($24,500)-12%Alexander Heights
9022 Arbor Creek DriveCharlotte$225,500 $250,000 ($24,500)-10%Arbor Creek
10310 Moores Chapel RoadCharlotte$164,500 $188,000 ($23,500)-13%Belmeade Green
4707 Belle Plaine DriveCharlotte$139,500 $161,000 ($21,500)-13%Hope Valley
2538 Stream Bank DriveCharlotte$193,500 $215,000 ($21,500)-10%Meadowhill
5028 Rolling Oak LaneCharlotte$157,000 $177,000 ($20,000)-11%Rolling Oaks
9909 Laurel Lake LaneCharlotte$310,500 $330,000 ($19,500)-6%White Oak
8715 Earthenware DriveCharlotte$181,500 $200,000 ($18,500)-9%Potters Glen
4011 Kalispell LaneCharlotte$357,500 $375,000 ($17,500)-5%Dominion Bridge
6312 Woodthrush DriveCharlotte$142,500 $160,000 ($17,500)-11%Hickory Ridge
6904 Passeres CourtCharlotte$203,000 $220,000 ($17,000)-8%Bradfield Farms
10506 Four Mile Creek RoadCharlotte$233,000 $250,000 ($17,000)-7%Raintree
8824 Castlebay DriveCharlotte$283,500 $300,000 ($16,500)-6%Landen Meadows
12618 Provincetowne DriveCharlotte$381,500 $398,000 ($16,500)-4%Reavencrest
11005 Spice Hollow CourtCharlotte$294,500 $310,000 ($15,500)-5%Thornhill
9106 Nathaniel Russell LaneCharlotte$132,000 $147,000 ($15,000)-10%Ivystone
8800 Royal Scot LaneCharlotte$170,500 $185,000 ($14,500)-8%Braewick
9316 Quilting Bee LaneCharlotte$241,000 $255,000 ($14,000)-5%Davis Meadows
5922 Sullins RoadCharlotte$166,000 $180,000 ($14,000)-8%Forest Pawtuckett
9326 Royal Highlands CourtCharlotte$276,000 $290,000 ($14,000)-5%Southampton
9823 Eagle Feathers DriveCharlotte$198,500 $212,000 ($13,500)-6%Catawba River Plantation
1801 Swan DriveCharlotte$241,500 $255,000 ($13,500)-5%Lawing Pond
16629 Broadwing PlaceCharlotte$257,000 $270,000 ($13,000)-5%Falcon Ridge
6510 Wild Orchid CourtCharlotte$224,000 $237,000 ($13,000)-5%Forest Pond
8028 Holly Hill RoadCharlotte$176,000 $189,000 ($13,000)-7%Holly Hills
3325 Aldwych WayCharlotte$239,000 $252,000 ($13,000)-5%Weston Woods
4309 Dunwoody DriveCharlotte$184,500 $197,000 ($12,500)-6%Cobblestone
3331 Ringtail LaneCharlotte$264,500 $277,000 ($12,500)-5%Lawing Pond
5005 Prosperity Ridge RoadCharlotte$222,500 $235,000 ($12,500)-5%Prosperity Ridge
11309 Gandolfo CourtCharlotte$268,000 $280,000 ($12,000)-4%Creekside at Wyndham Place
6105 Cambellton DriveCharlotte$281,000 $293,000 ($12,000)-4%Highland Creek
9705 Pecota LaneCharlotte$188,000 $200,000 ($12,000)-6%Preston Village
8608 Mulberry Grove RoadCharlotte$213,500 $225,000 ($11,500)-5%Olde Savannah
7809 Ambleside DriveCharlotte$215,500 $227,000 ($11,500)-5%Wedgewood
6117 Fazenda DriveCharlotte$174,000 $185,000 ($11,000)-6%Alexander Heights
5033 Silabert AvenueCharlotte$241,000 $252,000 ($11,000)-4%Anthem
4133 Davis Meadows DriveCharlotte$224,500 $235,000 ($10,500)-4%Davis Meadows
1422 Mcilroy RoadCharlotte$267,500 $278,000 ($10,500)-4%East Forest
12917 Tahoe DriveCharlotte$249,500 $260,000 ($10,500)-4%Hamilton Lakes
5913 Hamilton Oaks DriveCharlotte$129,500 $140,000 ($10,500)-8%Hamilton Oaks
14311 Tapestry Woods CourtCharlotte$221,500 $232,000 ($10,500)-5%Williams Glenn
5207 Hawkins Meadow CourtCharlotte$255,000 $265,000 ($10,000)-4%Caldwell Commons
1100 Rock Point RoadCharlotte$250,000 $260,000 ($10,000)-4%Sardis Oaks
10306 Moores Chapel RoadCharlotte$165,500 $175,000 ($9,500)-5%Belmeade Green
2522 Purser DriveCharlotte$191,000 $200,000 ($9,000)-5%Milton Park
13019 Red Vulcan CourtCharlotte$239,000 $248,000 ($9,000)-4%Old Stone Crossing
13721 Elsie Caldwell LaneCharlotte$243,500 $252,000 ($8,500)-3%Caldwell Commons
6638 Bluegill RoadCharlotte$286,500 $295,000 ($8,500)-3%Lawing Pond
9225 Merlot LaneCharlotte$211,500 $220,000 ($8,500)-4%The Vineyards
9839 Hanberry BoulevardCharlotte$223,500 $232,000 ($8,500)-4%Villages At Back Creek
9219 Lake Spring AvenueCharlotte$256,500 $265,000 ($8,500)-3%Wedgewood North
2328 Harwood Hills LaneCharlotte$232,000 $240,000 ($8,000)-3%Harwood Landing
12302 Overcup LaneCharlotte$267,000 $275,000 ($8,000)-3%Hunters Ridge
9912 Rocky Ford Club RoadCharlotte$271,000 $279,000 ($8,000)-3%Prosperity Ridge
14717 Beckenham DriveCharlotte$158,000 $165,000 ($7,000)-4%Arlington Forest
6822 Flat Creek DriveCharlotte$275,000 $282,000 ($7,000)-2%Southpointe
16740 Prairie Falcon LaneCharlotte$248,500 $255,000 ($6,500)-3%Falcon Ridge
2407 Oldenburg DriveCharlotte$306,000 $312,000 ($6,000)-2%Brandon Forest
404 Erin Taylor LaneCharlotte$194,500 $200,000 ($5,500)-3%Alexander Park
5615 Fairvista DriveCharlotte$334,500 $340,000 ($5,500)-2%Highland Creek
10610 Pointer Ridge DriveCharlotte$225,000 $230,000 ($5,000)-2%Catawba River Plantation
1921 Starbrook DriveCharlotte$265,000 $270,000 ($5,000)-2%Starmount
5928 Downfield Wood DriveCharlotte$246,500 $250,000 ($3,500)-1%Highland Creek
8708 Sedgeburn DriveCharlotte$273,000 $275,000 ($2,000)-1%Berewick
AVERAGES$229,356 $241,924 ($12,568)-6%

The table of Open Door homes for sale in Charlotte highlights actual data in the market.  So the question remains: Is convenience worth $12,568?

When it comes to these “instant cash offers”, all that glitters is not gold!  If it sounds too good to be true…well, you know the rest.  Know the truths about selling to Opendoor in Charlotte NC.  Do your research and consult an experienced and trusted real estate professional to know all the facts.  Know the true value of your home and don’t be undersold!  If you’re considering selling, evaluate whether convenience is really worth leaving thousands of dollars on the table!

SPREAD THE LOVE AND SHARE with the social icons below if you think this information can be helpful to others!

 

REQUEST A FREE CMA (COMPARATIVE MARKET ANALYSIS) TODAY!

Are You Looking for a New Home in the Charlotte Area?

We can help you find the perfect home, no matter what you’re looking for.  Our dedicated real estate team can keep an eye out for homes featuring things not usually listed in data bases and keep you informed, if you contact us and let us know what to look out for. Give us a call at 704-608-2794 or get in touch with us online to let us know what you’re looking for. We’ll help you find it!

If you’d like access to our exclusive real estate reports and worksheets for FREE, just fill out our simple, online, information request form.

In the meantime, please check out our:

  • North Charlotte homes for sale
  • South Charlotte homes for sale
  • Uptown Charlotte homes for sale
  • Homes for active adults in 55+ communities
  • Charlotte area Luxury homes for sale
  • Charlotte area New Construction homes for sale

Looking outside the city? Check out:

  • Ballantyne homes for sale
  • Harrisburg homes for sale
  • Steele Creek and Lake Wylie homes for sale
  • Concord homes for sale
  • Mint Hill homes for sale
  • Waxhaw homes for sale
  • Weddington homes for sale
  • Matthews homes for sale
  • Huntersville homes for sale
  • Union County homes for sale

Want help with home staging or home improvement ideas? Just ask or follow our blog! We also offer FREE real estate advice guides. For example, one guide points out nine common mistakes to avoid if you’re buying a new home. Another warns sellers about 14 common mistakes homeowners make when selling their homes.

Spread the love

Posted in: Charlotte lifestyle real estate blog, Home Selling, Listings, Sellers Tagged: Charlotte home sellers guide, Charlotte housing inventory, Charlotte housing market, Offerpad, Opendoor, Selling a Home, Selling a Home in Charlotte

About Derhyl Pruitt

Charlotte Magazine has recognized Derhyl Pruitt and Pruitt Miller Realty Group as a FIVE STAR: Best in Client Satisfaction Real Estate firm for the Charlotte market. As a Charlotte native, his exceptional knowledge of the region allows him to offer a unique perspective to relocating families and local clients alike. His expertise in contract analysis, financing and negotiating skills go beyond the typical approach to real estate. Derhyl is a Luxury Home Expert and member of the Institute for Luxury Home Marketing. Additionally, he is an Accredited Buyer Representative (ABR), a Certified Distressed Property Expert (CDPE), and a Senior Real Estate Specialist (SRES) who has worked with the influx of Retirees transitioning to the Charlotte area.

Derhyl is licensed in NC and SC. He has a B.S. degree in Accounting from the University of North Carolina at Charlotte. He is a member of Omega Psi Phi Fraternity, Inc.

Quick Home Value

Get a FREE CMA NOW!

Find out the REAL Value of your home in today's market with a FREE Comparable Market Analysis!

Charlotte NORTH Communities

  • University City
  • Concord – (Cabarrus county)
  • Harrisburg – (Cabarrus county)
  • Huntersville – (Lake Norman)
  • Cornelius – (Lake Norman)
  • Davidson – (Lake Norman)
  • Denver – (Lake Norman)
  • Mooresville – (Lake Norman)
  • Sherrills Ford – (Lake Norman)
  • Troutman – (Lake Norman)

Charlotte NORTH Communities

  • University City
  • Concord – (Cabarrus county)
  • Harrisburg – (Cabarrus county)
  • Huntersville – (Lake Norman)
  • Cornelius – (Lake Norman)
  • Davidson – (Lake Norman)
  • Denver – (Lake Norman)
  • Mooresville – (Lake Norman)
  • Sherrills Ford – (Lake Norman)
  • Troutman – (Lake Norman)

Quick Property Search

Charlotte NORTH Communities

  • University City
  • Concord – (Cabarrus county)
  • Harrisburg – (Cabarrus county)
  • Huntersville – (Lake Norman)
  • Cornelius – (Lake Norman)
  • Davidson – (Lake Norman)
  • Denver – (Lake Norman)
  • Mooresville – (Lake Norman)
  • Sherrills Ford – (Lake Norman)
  • Troutman – (Lake Norman)

Charlotte NORTH Communities

  • University City
  • Concord – (Cabarrus county)
  • Harrisburg – (Cabarrus county)
  • Huntersville – (Lake Norman)
  • Cornelius – (Lake Norman)
  • Davidson – (Lake Norman)
  • Denver – (Lake Norman)
  • Mooresville – (Lake Norman)
  • Sherrills Ford – (Lake Norman)
  • Troutman – (Lake Norman)

Charlotte NORTH Communities

  • University City
  • Concord – (Cabarrus county)
  • Harrisburg – (Cabarrus county)
  • Huntersville – (Lake Norman)
  • Cornelius – (Lake Norman)
  • Davidson – (Lake Norman)
  • Denver – (Lake Norman)
  • Mooresville – (Lake Norman)
  • Sherrills Ford – (Lake Norman)
  • Troutman – (Lake Norman)

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Post navigation

« The Truth About Offerpad in Charlotte

Quick Home Value

Get a FREE CMA NOW!

Find out the REAL Value of your home in today's market with a FREE Comparable Market Analysis!

Charlotte NORTH Communities

  • University City
  • Concord – (Cabarrus county)
  • Harrisburg – (Cabarrus county)
  • Huntersville – (Lake Norman)
  • Cornelius – (Lake Norman)
  • Davidson – (Lake Norman)
  • Denver – (Lake Norman)
  • Mooresville – (Lake Norman)
  • Sherrills Ford – (Lake Norman)
  • Troutman – (Lake Norman)

Charlotte NORTH Communities

  • University City
  • Concord – (Cabarrus county)
  • Harrisburg – (Cabarrus county)
  • Huntersville – (Lake Norman)
  • Cornelius – (Lake Norman)
  • Davidson – (Lake Norman)
  • Denver – (Lake Norman)
  • Mooresville – (Lake Norman)
  • Sherrills Ford – (Lake Norman)
  • Troutman – (Lake Norman)

Quick Property Search

Charlotte NORTH Communities

  • University City
  • Concord – (Cabarrus county)
  • Harrisburg – (Cabarrus county)
  • Huntersville – (Lake Norman)
  • Cornelius – (Lake Norman)
  • Davidson – (Lake Norman)
  • Denver – (Lake Norman)
  • Mooresville – (Lake Norman)
  • Sherrills Ford – (Lake Norman)
  • Troutman – (Lake Norman)

Charlotte NORTH Communities

  • University City
  • Concord – (Cabarrus county)
  • Harrisburg – (Cabarrus county)
  • Huntersville – (Lake Norman)
  • Cornelius – (Lake Norman)
  • Davidson – (Lake Norman)
  • Denver – (Lake Norman)
  • Mooresville – (Lake Norman)
  • Sherrills Ford – (Lake Norman)
  • Troutman – (Lake Norman)

Charlotte NORTH Communities

  • University City
  • Concord – (Cabarrus county)
  • Harrisburg – (Cabarrus county)
  • Huntersville – (Lake Norman)
  • Cornelius – (Lake Norman)
  • Davidson – (Lake Norman)
  • Denver – (Lake Norman)
  • Mooresville – (Lake Norman)
  • Sherrills Ford – (Lake Norman)
  • Troutman – (Lake Norman)

Homes for sale in Charlotte NC

Pruitt Miller Realty Group - Huntersville
Homes for sale in Charlotte NC
13420 Reese Blvd W
Huntersville, NC 28078
Direct Phone: 704-608-2794

Trending Charlotte Homes

Retirement Communities in Charlotte NC | Retirement Homes in Charlotte NC | Relocating to Charlotte NC | Charlotte Luxury Homes | Homes for Sale in Matthews NC | Homes for Sale in Charlotte North Carolina | New Construction Charlotte NC | Homes for Sale in Weddington NC | Waxhaw NC Homes for Sale | Huntersville NC Homes for Sale | Ballantyne NC Homes for Sale | Search Charlotte MLS

Popular Homes in Charlotte

Charlotte NC Homes for Sale in Bradfield Farms | Homes for Sale University City | Charlotte NC Homes for Sale in Berewick | Charlotte NC Homes for Sale in Steele Creek Landing | Charlotte NC Homes for Sale in Rocky Ridge | Charlotte NC Homes for Sale in Steeplechase | Hathaway Hills Homes for Sale in Charlotte NC | Charlotte NC Homes for Sale in the Palisades | Charlotte NC Homes for Sale in Westmoreland
© 2023 · Pruitt Miller Realty Group - Huntersville, Derhyl Pruitt · 704-608-2794 · Sitemap · IDX Sitemap · IDX XML Sitemap · Accessibility Statement · Privacy Policy · Charlotte NC Homes for Sale
Disclaimer - All Rights Reserved by Pruitt Miller Realty Group - Huntersville, Derhyl Pruitt

Log in · Real Estate Websites by Real Estate Websites by YourSiteNeedsMe.com
Rated 5 / 5 based on 23 reviews. | Review Us