“This is one of many milestones towards our mission.”
Opendoor utilizes data analysis to determine its pricing, a central element of its business plan; if it overpays for a home upfront, it could take a loss. If it tries to underpay, sellers will look elsewhere.
Opendoor generated $4.7 billion in revenue last year on 18,000 home sales across 21 markets. Still, the company is operating at a substantial loss. In April, it laid off a third of its employees.
Opendoor also faces increased competition, from Zillow Z +1.8%, Offerpad, Redfin RDFN +0.9% and others. Even still, iBuying comprises just 0.5% of the $1.6 trillion home-buying market, according to The Real Deal.
So far, the market is reacting positively to its second major deal, with Opendoor. As of 9:50 am eastern time on Tuesday, the SPAC’s stock is up 16%.