"One of the things that helped Carvana was flipping over to EBITDA profitability, and then with the expected rate cut and Opendoor's seller traffic, I just felt like Opendoor would have this tailwind behind it, Jackson said. We are now so used to Uber being the way we do taxis and Airbnb being how we book travel accommodation, to me it felt obvious that real estate is a huge market that is ready to be disintermediated and yet nobody had really done it yet,"
"Hahn notes, however, that once Opendoor purchases the home, the consumer is no longer the home seller, so they have no control over the eventual list price, which means that the consumer is assuming an immense amount of risk, as Opendoor could potentially sell the property for far less than the homeowner was hoping for, meaning that they net less money than anticipated."
An X post on July 14 presented an investment thesis comparing Opendoor to early Carvana, citing limited domestic competition, expected Q2 EBITDA profitability, and a potential Federal Reserve rate cut as catalysts. Investor interest followed, framing Opendoor as a risky but potentially disruptive iBuyer poised to disintermediate real estate. Opendoor’s turnaround strategy emphasizes three priorities: Cash Plus, Key Connections, and leveraging AI. Cash Plus, launched late July 2025, offers sellers a large portion of home value within 14 days and additional post-sale funds but is limited to sellers working with Key Agents. Analysts warn Cash Plus may enable below-market purchases and transfer substantial resale-price risk onto consumers.
Read at www.housingwire.com
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