[azirbel]

Longer comment on "flipping": https://news.ycombinator.com/item?id=13835150.

> Also, I guess I don't understand where they actually make money.

Sorry for not being more clear on that. When we make an offer on a home, we present a headline price ("we think your home is worth $X"), and an upfront fee for our service (6-12% depending on our estimation of the risk, where traditional real estate fees are 6%).

We try to make the fee as transparent to our sellers as possible, so they can make a fully informed decision.

[wtvanhest]

Most house flippers are not some evil group going around tricking grandmas. Their typical pitch goes like this:

I will buy your house immediately. The way I can do it is to offer you a lower price than you can get if you wait to sell it. Here is my offer for 88% of what your house is worth.

If they wanted to change their pitch it would be...

I buy houses from people. I can close right away, but I need to charge you a 12% fee for a fast closing. That really only costs you 6% because you dont have to hire a broker.

Economically, they are the exact same pitch. There is nothing wrong with either approach. I do understand you not wanting to be associated with flippers, but the reality is hard to argue against.

[jdross]

Our average fee is below 8% total, so a 1-2% premium for selling vs a broker and we'll continue to push it lower.

If you consider holding costs of a home, prepping to sell, etc Opendoor is often at or below cost parity for a segment of sellers for a dramatically better experience.