iBuyer Beware: FTC Settles With Corporate Real Estate Firm Over 'Deceptive' Practices
Today the U.S. Federal Trade Commission (FTC) released a statement regarding a settlement with iBuyer firm, Opendoor, over what the FTC claims were 'deceptive' business practices by the company.
Several iBuyer companies have come on to the real estate scene in the last several years as they moved to capitalize on rising home prices. These firms provide potential home sellers with 'instant offers' and often claim to use technology to simplify the home selling process.
Opendoor has come under fire for "cheating potential home sellers" and "tricking them into thinking that they could make more money selling their home to Opendoor than on the open market..." per the FTC's press release.
Our lead Realtor, Mike Schoonover, reviewed the FTC's statement on the settlement along with Opendoor's corporate response to the allegations. Take a look at his breakdown below:
To be clear, we do believe iBuyer companies can provide a possible solution for a certain segment of home sellers. For those who want a quick sale and only want to deal with one potential buyer, corporate buyers like Opendoor may be able to help as long as you understand and accept the consequences of limiting your market exposure.
If you receive an offer from a corporate buyer or an investor big or small, it's easy to get a second opinion regarding what your home would likely fetch on the open market by connecting with us at the 812 Living Group.
We can make a short visit to your property, show you comparable homes that have sold in your area, and tell you what your home's estimated worth is to local buyers. For more information, email us at 812Living@gmail.com.
To read the full statement from the Federal Trade Commission, click here: https://www.ftc.gov/news-events/news/press-releases/2022/08/ftc-takes-action-stop-online-home-buying-firm-opendoor-labs-inc-cheating-potential-sellers
To read the press release from Opendoor Labs, click here: https://www.globenewswire.com/news-release/2022/08/01/2489793/0/en/Opendoor-Statement-on-FTC-Settlement.html
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