Knock Knock. Who's There? Opendoor.

Centralized pricing gives it the best pulse on the market of anyone in it.

WFH is here to stay, so people are moving to higher quality-of-life cities

The Zillow threat is overblown. Opendoor has a range of advantages over Zillow in iBuying, which are borne out by the numbers.

It has positive and improving unit economics.

No one has taken the vertically integrated approach and long view that Opendoor has. Opendoor built the world’s most accurate home pricing model, operates a distributed network of thousands of inspectors and contractors, regularly accesses both the debt and equity capital markets, takes inventory risk, and coordinates among the many parties involve... See more

The Fed signaled that it will keep interest rates near zero at least through 2023

Residential real estate is a massive market ($1.6 trillion annually) with low customer satisfaction and an inconsistent experience (28% of realtors do the job part time). Opendoor’s model has five tailwinds at its back:

Opendoor uses an Automated Valuation Model (AVM) to algorithmically price homes.

Opendoor faces opposition from the realtors who still control the vast majority of the housing market and competition from Zillow, a company I respect tremendously that has a massive demand generation advantage.

Sellers enter their address, answer some questions, and receive an offer instantly.