The corporate desires to double its complete markets in 2021, however is eyeing a a lot greater objective.
Opendoor revealed bold short- and long-term growth plans throughout its first investor earnings call since changing into a publicly-traded firm.
Opendoor CEO Eric Wu informed buyers on the decision that he deliberate to convey the corporate’s direct-to-consumer homebuying and promoting platform to 42 markets in 2021, in service of the corporate’s objective to “be the perfect place to promote a house on-line and seamlessly transfer.”
“Our operational techniques, pricing fashions and launch playbook have been examined at scale and are underpinned by a know-how platform that automates and centralizes the transaction,” Wu stated. “Thus, we’re positioned to quickly and profitably increase nationwide.”
The corporate already introduced plans to launch operations in San Diego and Asheville, North Carolina, and can open in a complete of six new markets within the first quarter of 2021. By the tip of the yr, the corporate may have doubled its complete presence.
Opendoor isn’t stopping there — Wu stated the corporate is ultimately eyeing 100 complete markets and serving greater than 70 % of complete properties in the US.
Moreover, the corporate is targeted on driving growing market share of sellers in its current markets. Wu reported the corporate’s supply acceptance charge is at present the best it has been in Opendoor historical past and the corporate is receiving 50 % extra vendor requests than this time final yr.
Opendoor elevated its “purchase field” — primarily the parameters a house wants to satisfy to be thought-about for a sale — by 35 % within the fourth quarter. The corporate did this by growing its protection of worth, ZIP codes inside present markets and residential sort.
“This purchase field enchancment, plus growing supply requests, plus file excessive conversions give us confidence in our skill to realize a historic market share degree,” Wu stated.
The third part of Opendoor’s growth is an effort to construct out its “digital one-stop-shop.” Opendoor was launched as an iBuyer however has added a variety of totally different companies over the yr, together with a home loans division and buying a closing companies firm, in addition to providing extra traditional brokerage services.
“We’ve already enabled householders to promote on-line in a couple of minutes and supply tech-enabled title insurance coverage, escrow and mortgage companies,” Wu stated. “Sure, we all know that two-thirds of sellers are additionally consumers so we’re constructing a one-tap shopping for expertise so clients can purchase and promote seamlessly.”
In pursuit of that objective, the corporate debuted a cash-backed affords platform, the place consumers will have the ability to current a vendor with a suggestion backed by Opendoor’s money reserves.
“We all know the market is aggressive, we all know consumers wish to enhance their probabilities of getting their dream residence and we all know sellers need certainty,” Wu stated. “This characteristic and extra to return, display our skill to maneuver shortly based mostly on what we’re seeing available in the market and leverage our experience, know-how, pricing and operations.”
The revelation of the corporate’s future plans comes simply months after Opendoor went public through a merger with Social Capital Hedosophia Holdings Corp. II, a particular objective acquisition firm (SPAC).
Within the wake of that public debut — which raised internet proceeds of $980 million — the corporate moreover accomplished a follow-on public fairness providing of $860 million in February, giving it an enormous warfare chest to increase.