Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (Haven Express @ Keller Williams Arizona Realty)

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Rainer
136,410
Caroline Gerardo
Eagle Home Mortgage, LENNAR HOMES Home Loans - Newport Beach, CA
C. G. Barbeau the Loan Lady

Opendoor Labs is privately owned start up located in San Francisco operating in Arizona Texas and Nevada. Lennar invested funds into OpenDoor to expand (Opendoor started 3 years ago with angel funds, then mezzanine and needed $) Lennar uses the service to buy homes from people who want to puchase a new build Lennar Home. The person sells house in 3-4 days and gets a 6.5% credit for about market price. Lennar owns a title company, a solar company and a mortgage co (which I work for) they also own lots of land and are buying or shopping to build single family and multi family. A wonderful company to work for, Lennar is headquartered in Florida and quietly beats most of the nation's builders and mortgage companies. This year Lennar will combine it's mortgage operations under one name (dropping the Universal American brand names and branding soley under the Eagle name)  Buyers aren't forced to use Opendoor but because it allows them to have cash in hand in days it allows buyers to get in contracts without contingencies. Hope that clears the mystery

Mar 17, 2017 12:04 PM
Rainer
201,424
Ken Jones
RE/MAX At Barnegat Bay - Toms River, NJ
ASA, SRES, SCGREA

Tony and Suzanne Marriott, Associate Brokers This is the same concept that's been used by smart small builders since the 1970's.

In the mid 1970's in New Jersey, I worked with a brokerage that offered to (and actually did) buy your home if you bought another from us.

I was personally involved in several of those transactions, and actually bought one of those homes for myself.

All of this history is merely to say, the concept of the relationship between Lennar and OpenDoor is nothing new; only the scale is larger.

In my mind, if done properly, it could be a benefit to all parties.

However, it's just another percentage of the "traditional" real estate brokerage business that's now being eaten away by non-traditional methods.

Mar 17, 2017 06:32 AM
Ambassador
2,355,520
Anna Banana Kruchten, CRS
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

I did not but Caroline Gerardo certainly knows all about it!

Mar 17, 2017 03:35 PM
Rainmaker
417,012
Mike & Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

In Florida, every RE entity has a finacial relationship with someone...it is unusual if they don't.

Most real estate offices have controlled business relationships with title companies who jam their affiliate on the buyer.  I have had several instances where the agent tries to kill the deal if we do not use their "partner" company.

Florida title companies have paid out millions in fines for illegal kickbacks, yet illegal kickbacks are alive and doing well. 

Sure go complain...everyone at the state level is too busy to bother and claim not to have the manpower.

Last time I bothered to complain to the state was about a mega broker who owned the title company.  At closing, they BLATENTLY paid me less and their brokerage more, contrary to what the contract stated.  The response from the state was that I was probably right but they were going to do nothing...

I think they were afraid of rocking the boat on a broker that had 5 offices.

Eve

Mar 17, 2017 06:27 AM
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

No. I am impressed with the answer by Caroline Gerardo

Mar 18, 2017 08:46 AM
Ambassador
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Fred Griffin
Frederick Griffin, Exclusive Buyer's Broker - Tallahassee, FL
Licensed Florida Real Estate Broker

Caroline Gerardo explained it well!

Mar 17, 2017 07:45 PM
Rainmaker
219,384
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Thanks for sharing.

Mar 17, 2017 06:42 PM
Ambassador
3,007,352
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I didn't even know who OpenDoor was until I read some comments. Lennar is not yet in my marekt area.

Mar 17, 2017 04:18 PM
Rainmaker
1,237,254
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One - Carlsbad, CA
Presence, Persistence & Perseverance

I steer clear of anything L having been burned by them in years past. Sounds like a form of vertical integration.

Mar 18, 2017 08:07 AM
Rainer
470,007
Richard Bazinet /MBA, CRS, ABR
AZuRE Team - Realty ONE Group - Scottsdale, AZ
Phoenix Scottsdale Real Estate

Caroline is the brains of this outfit.

Mar 18, 2017 07:45 AM
Rainmaker
1,778,193
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

I don't... but I do sell a lot of Lennar homes. Closed on a new one last month. Have two new builds in contract.

Mar 18, 2017 06:16 AM
Rainmaker
3,576,316
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I didn't know.

Mar 18, 2017 06:00 AM
Rainmaker
613,379
Jennifer Mackay
Keller Williams Success Realty - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

I did not but not surprised

Mar 18, 2017 05:21 AM
Ambassador
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Praful Thakkar
eXp Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Tony and Suzanne Marriott, Associate Brokers - wow! Good info from Caroline Gerardo.

Mar 17, 2017 10:31 PM
Rainmaker
3,419,533
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No.

Mar 17, 2017 09:50 PM
Rainmaker
575,298
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

No. Big mahalo to Tony and Suzanne Marriott, Associate Brokers for the question and to Caroline Gerardo for such an informative answer. 

Mar 17, 2017 08:55 PM
Rainmaker
3,059,130
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I did not

Mar 17, 2017 07:50 PM
Ambassador
999,545
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I am aware of Lennar but we don't have them in our area but thansk for the information.

Mar 17, 2017 07:44 PM
Rainmaker
2,962,581
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

I appreciate the explanation from Caroline Gerardo 

Mar 17, 2017 07:21 PM
Rainmaker
2,056,681
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Tony and Suzanne Marriott, Associate Brokers I am not aware of it.

Mar 17, 2017 03:27 PM
Rainmaker
3,080,907
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding and Marketing

No idea!

Mar 17, 2017 02:19 PM
Rainmaker
1,143,839
Marc Swartz, CPA, CA, Real Estate Broker
Royal LePage Vision Realty, Brokerage, Direct: (416) 737-9800, Office: (416) 321-2228 - Toronto, ON
Toronto, Durham & York Regions, Ontario, Canada

I do not follow either company.

Mar 17, 2017 12:29 PM
Rainmaker
3,613,808
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

to answer your question, I do not know....not do I need to, I suppose...

Mar 17, 2017 10:55 AM
Ambassador
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Bob Crane
Woodland Management Service - Stevens Point, WI
Forestland Experts! 715-204-9671

Did not know this, but then there are plenty of relationships out there.

Mar 17, 2017 10:17 AM
Rainmaker
819,449
Corinne Guest, Managing Broker
Barrington Realty Company - Barrington, IL
The Choice of Professionals

Not local to here but not surprised. All our attorneys have relationships with title companies with whom they place insurance and closings business. Most builders with lenders and so on. It's about how they conduct that business and the disclosures that matter, as long as doors are not slammed shut for making alternative choices....

Mar 17, 2017 08:49 AM
Rainmaker
2,295,350
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

News to me ... I did not know that.  Yet, I am not surprised. 

Mar 17, 2017 08:00 AM
Rainmaker
2,531,969
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

This is news to me, Tony and Suzanne.  

Mar 17, 2017 07:35 AM
Ambassador
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

I was not aware of that

Mar 17, 2017 07:15 AM
Rainmaker
580,495
Thomas J. Nelson, Realtor, CRS
Big Block Realty 858.232.8722 - La Jolla, CA
Co-Host of Mail-Right's: Real Estate Agent Podcast

I guess I don't know enough about either to understand the issue behind what you are exposing other than what you stated?

Mar 17, 2017 07:11 AM
Rainmaker
104,614
Julie Larson Realtor® Sarasota FL 941-882-0322
PalmerHouse Properties Florida - 941-882-0322 | Serving Sarasota, Manatee & Charlotte Counties - Sarasota, FL
When you're thinking of moving...ThinkSuncoast.com

I've not heard of OpenDoor and will need to check them out.

Mar 17, 2017 06:52 AM
Rainmaker
1,477,448
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Nope

Mar 17, 2017 06:28 AM
Rainmaker
1,219,861
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

Nope, seems odd they are partners.

Bloomberg Piece

Mar 17, 2017 06:23 AM
Rainmaker
2,028,895
Richard Weeks
Dallas, TX
REALTOR®, Broker

No I did not know that.

Mar 17, 2017 06:19 AM
Rainmaker
1,214,504
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Tony and Suzanne Marriott, Associate Brokers No, not familiar with either company.

Mar 17, 2017 06:18 AM
Rainmaker
537,431
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

No, I was not aware.

Others will provide to the homeonwer what our organizations prohibit.

It makes sense that a builder would create their own funnel. Smart.

 

 

Mar 17, 2017 06:15 AM
Ambassador
1,523,477
Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

news to me

Mar 17, 2017 06:09 AM
Rainer
221,328
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

No, but it is no surprise. Just another way to funnel business their way.

Mar 21, 2017 10:34 AM
Rainmaker
2,881,551
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Had not heard of OpenDoor.

Mar 20, 2017 10:27 AM
Rainmaker
2,088,396
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Wow, did not know that.

 

Mar 19, 2017 09:54 AM
Rainmaker
702,806
Troy Erickson
Diverse Solutions Realty www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Tony and Suzanne - I had no clue, but now I do thanks to Caroline Gerardo.

Mar 19, 2017 12:27 AM
Rainmaker
845,652
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I was not aware of this.  Thank you Caroline Gerardo for the detailed info.

Mar 18, 2017 12:04 PM
Rainmaker
69,330
Susie Kay
Ultima Real Estate - Dallas, TX
Dallas Specialist

Thank you for sharing, Caroline!

Mar 18, 2017 09:34 AM
Ambassador
1,883,349
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Great information from Caroline Gerardo!

Mar 18, 2017 08:53 AM
Rainmaker
2,091,965
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Not a factor in any of my markets yet!

Mar 18, 2017 07:08 AM