Does Opendoor's Business Model Have a Fatal Flaw? 1 Thing Investors Should Watch Before Buying the Stock
Opendoor (NASDAQ: OPEN) is looking to "reinvent life's most important transaction." To Opendoor that transaction is buying and/or selling a home, which 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.Image source: Getty Images.Continue reading
Opendoor (NASDAQ: OPEN) is looking to "reinvent life's most important transaction." To Opendoor that transaction is buying and/or selling a home, which 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.
Image source: Getty Images.
