The company aims to double its total markets in 2021, but has a much bigger goal.
Opendoor revealed ambitious short and long term expansion plans on its first investor earnings call since its inception as a publicly traded company.
Eric Wu, CEO of Opendoor, announced to investors that he intends to bring the company’s direct buy and sell platform to 42 markets in 2021 in order to meet the company’s goal of being “the best place to be House online and seamlessly sell movement. “
“Our operating systems, pricing models and the launch playbook have been tested on a large scale and are powered by a technology platform that automates and centralizes the transaction,” said Wu. “This enables us to expand nationwide quickly and profitably.”
The company has already announced plans to start operations in San Diego and Asheville, North Carolina, and will open a total of six new stores in the first quarter of 2021. The company will double its overall presence by the end of the year.
Opendoor doesn’t stop there – Wu said the company ultimately has 100 markets in mind and serves more than 70 percent of all homes in the United States.
In addition, the company is focused on increasing the market share of the sellers in the existing markets. Wu reported that the company’s bid acceptance rate is currently the highest in Opendoor’s history, and the company is receiving 50 percent more seller inquiries than it was at this time last year.
Opendoor increased its “buy box” – essentially the parameters a home must meet in order to be considered for sale – by 35 percent in the fourth quarter. The company has done this by increasing coverage of prices, zip codes in current markets, and house types.
“This improvement in the purchase box, as well as the increase in requests for quotes and record high conversions, give us confidence in our ability to achieve historic market share levels,” said Wu.
The third component of Opendoor’s expansion is the expansion of the “digital one-stop shop”. Opendoor launched as iBuyer, but added a number of different services over the year, including a home loan department and acquisition of a closing service provider, as well as more traditional brokerage services.
“We’ve already enabled homeowners to sell online and provide technology-based property insurance, trust and mortgage services in minutes,” said Wu. “Yes, we know two-thirds of sellers are also buyers. That’s why we’re building a one-tap buying experience so customers can buy and sell seamlessly.”
To achieve this goal, the company has launched a platform for cash-backed offers, where buyers can make an offer to a seller that is backed by Opendoor’s cash reserves.
“We know the market is competitive, we know buyers want to improve their chances of getting their dream home, and we know sellers want security,” said Wu. “These and other features show that we are able to move quickly based on what we see in the marketplace and leverage our expertise, technology, prices and operations.”
The company’s future plans are revealed just months after Opendoor went public through a merger with Social Capital Hedosophia Holdings Corp. II, a special purpose vehicle (SPAC).
Following that public debut, which generated $ 980 million in net proceeds, the company also completed an additional $ 860 million public stock offering in February, giving it a massive war chest to expand.
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