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Finance

Is Opendoor SPAC Stock a Good Long-Term Buy for Investors?

Should I buy Opendoor stock?

Opendoor is operating in a very fragmented market with nearly 2 million realtors across the U.S. There’s a significant potential for consolidation and Opendoor could lead the way. The overall potential is also very huge with online home buying representing just 1 percent of the $1.6 trillion real estate market. 

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Source: Opendoor Facebook

Currently, Opendoor operates in 21 markets and plans to scale this model to other cities. Opendoor’s “playbook” calls for the company to gain a 4 percent market share in 100 markets and hit $100 billion in revenue.

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Opendoor has a very integrated business model. On the seller side, it offers a platform for sellers to list their properties on and offers to buy property from them. The platform attracts many new sellers to the company who otherwise wouldn’t go to a website to list. The company has a proprietary pricing algorithm, which uses 145 features to evaluate the value of a house. The algorithm makes the process fairly straightforward and fast. The platform also has a potential for higher accuracy as more inputs get into the algorithm. 

On the buyer side as well, the company offers something extra. It not only enables buyers to bid for properties, it also offers financing services, a very specialized customer experience, and on-demand property information. Opendoor facilitates interaction-less home tours, which has been especially useful amid the COVID-19 pandemic. 

View more information: https://marketrealist.com/p/is-opendoor-spac-stock-a-good-buy/

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