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Is 12% worth avoiding a Realtor?
  
Over the past year companies like Open Door and OfferPad have made some inroads into the Phoenix real estate market. Small inroads (about 3% of total sales valley wide over the past year), but inroads nonetheless.
For those not familiar with Open Door and OfferPad, they are companies that promise to buy your home for "market price" and close within days, alleviating the stress and hassle of selling your home.  In turn, they then make any repairs/updates necessary and then list the home for sale themselves.
But here's the catch, the "fee" they charge to purchase your home ranges anywhere from 6-12% of the purchase price.  PLUS, they reserve the right to charge a "repair" fee.
I did an informal analysis of homes that Open Door and Offer Pad have purchased and sold in my market, Anthem, AZ, over the past year.  And our broker did a similar analysis of the retirement communities we serve around the office.  We both came to the same conclusion.  Open Door and Offer Pad typically pay a seller 12% LESS than the going market rate for their homes. And when you think about it, of course, they have to, in order to earn a profit on THEIR sale.
So ... more

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