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Stock impact report

Does Opendoor's Business Model Have a Fatal Flaw? 1 Thing Investors Should Watch Before Buying the Stock [Yahoo! Finance]

Opendoor Technologies Inc (OPEN) 
Company Research Source: Yahoo! Finance
is most certainly a very large and important event in most people's lives. The business model is interesting, but there's a potentially fatal flaw. Here's the big issue to watch if you are looking at or own Opendoor. The key to Opendoor's plan is that it makes it easy to sell a home. It gives sellers a cash offer and can do that transaction quickly. That offer, however, is going to be less than what the home could be sold for if it were fixed up and sold the traditional way. This is where Opendoor is attempting to build in its profit. Once Opendoor buys a home it does all of the normal things, the hard work if you will. It fixes up the house to make it presentable and then it sells it at a price that is more in line with the market. Operating at scale in the 50 markets the company serves gives Opendoor an edge with regard to fixing up properties and having a handle on the proper pricing. Basically, it has a good idea of what buyers want and it has the contacts and staff needed to Show less Read more
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