Real Estate Tech Startup Opendoor Raises $80 Million in Funding, Takes Online Home Buying to a Whole New Level

A home buying startup company, called Opendoor, wants to change online property shopping by its business model called "instant offer." The program identifies the kind of home that matches the company's requirements and "instantly" makes an offer to buy with the plan of selling or flipping the property as soon as possible.

According to Inman, Opendoor is quickly becoming a well-known real estate startup group. Armed with records they believe can identify the precise rates on homes and cars, their main objective is to simplify the sales process online. This distinct approach in real estate markets makes Opendoor unique. By using its software, buyers can choose the kind of homes they want online which makes the whole process a lot easier.

As proof of its success, Opendoor has raised $80 million in the third funding round. They made their standing stronger in the real estate market. The so-called "instant offer" model has so far proven to be effective.

In the middle of December, the company has bought and sold more than 200 homes. The company makes an appraised average income between $10,000 and $15,000 from these homes. They also get 9 percent additional earnings from the seller. One of their marketing strategies is buy-sold strategy. This is a type of real estate investment move wherein the investor will purchase a property and resell it to the market for a profit.

In a post by Biz Journals, former co-founder of PayPal and Square executive Keith Rabois founded Opendoor Labs Inc. with the aim of making home-buying a stress-free activity for people who don't have time to do property visits. The company, based in San Francisco, is headed by CEO Eric Wu who explains that Opendoor uses software and data to be able to quickly list homes for sale. Compared to an open market sale, owners can expect a discounted price but the company promises a faster transaction.