The real estate market in the United States has come under intense scrutiny in recent times. This is due to fast rising prices. Downtown properties have been priced out of affordability. Americans, after a long time, has begun to think that it is better to sell their homes than to purchase one. This is a radical shift from what was believed to be a market for buyers during the recession. Prices of homes are rising at about six percent every year. Inventory is also tight, leaving a hard influence on the moods of the buyer.
When it comes to selling houses, a kind of sales model specially crafted for the US real estate market has come into existence. It promises to revolutionize the process of house selling through a painless and simple “one click” process. Anybody can effortlessly sell a home. The OpenDoor company, a start-up, permits homeowners in a few areas to post details like the address of their homes online. The clients must fill certain property related details. These will enable the algorithms of the company to crunch the relevant data. An instant offer is made on that house. If the seller accepts, the deal will be closed by OpenDoor within a period of three days.
Two other start-up companies-Knock and Offerpad, have also waded in through offering near identical services. This few emerging companies want to make the process of selling a house as easy as selling a vehicle. The standard formula adopted by such startups is to analyze a number of house sales data and using them, generate the concerned home's accurate price. The companies charge a large amount as convenience fee. The company will then resell the house after making a few upgrades. This is done after some period of time.
In simple terms, these start-up companies harness online convenience values to flip houses. These activity is done on a huge scale. Sellers of homes have the advantage of zero uncertainty and pain. They can, however, lose considerable amounts of money to expediting experience and also paying convenience fee. Total expenses become a little higher compared to hiring the services of real estate agents. As per trade professionals, almost 30 percent of individuals who suggest that an offer can be made decides to buy it. These companies, however, tend to target the market middle, and not to purchase expensive mansions or cheap houses.