The Federal Trade Commission today announced it had taken enforcement action against online home buying company Opendoor Labs, alleging that the company engaged in unfair practices by misrepresenting the benefits of its home-buying service while failing to disclose important terms related to the transaction. In particular, the FTC alleges that Opendoor deceived prospective sellers by telling them that they could make more profit selling their homes to Opendoor than they could on the open market, even though the company did not provide any evidence to support those claims.
Under a proposed administrative order, the company must compensate consumers harmed by its conduct and cease certain deceptive marketing practices.
OpenDoor has agreed to pay $62 million dollars to settle allegations of misleading prospective home buyers. The FTC says the company misled people by telling them they would be able to sell their houses for more if they sold them to OpenDoor instead of a traditional realtor.
According to the Federal Trade Commission, most people who bought homes through Opendoor ended up losing thousands of dollars when compared to what they could have made if they had listed their properties for rent instead. The FTC claims that the real estate startup routinely charged sellers excessive fees and didn’t disclose important terms of the sales contracts.
In summary, Opendoor was promising to revolutionize the realty industry by offering homeowners an alternative to traditional realtors. However, they were found to be misleading their customers about how much they would actually get for their house when they sold it through them.
Online Resources Are Still Not a Substitute for Real Estate Agents.
There are so many online resources available to help home buyers and sellers navigate the complex world of real estate transactions. However, while technology has improved over the years, it still cannot match the experience and knowledge that a licensed agent brings to the table.
When it comes to purchasing or selling a property, an experienced realtor can help you avoid common mistakes and negotiate a fair price.
Even though there are plenty of other options for finding homes, there really aren’t any viable alternatives to working with an in-person licensed realtor. So if you’re thinking about selling your house yourself, consider getting some assistance to make sure you’re getting the best price.
I have had over 25 years experience in working with homes inside and out, and I am ready to help bring that experience to your next home sale or purchase.