The Federal Trade Commission Makes "Opendoor" Pay $62 million back to sellers if purchased from

The Federal Trade Commission Makes Opendoor Pay $62 million

FTC has started sending checks to 54,689 people. Each individual will end up with $1,024 in their pocket.

Opendoor has been asked to refund a total of $62 million to 54,689 home sellers as a part of its settement with the FTC.

The settlement was announced on April 3rd and the FTC said it would start sending out checks on the same day. Every recipient should get around $1,024, according to Inman.

Housing Market Prediction: Opendoor will be BANKRUPT in 24 Months!

Allegations Against Opendoor

Opendoor has been facing heat over its marketing. The primary allegations mentioned in the FTC press release are:

Opendoor mislead home sellers by making them believe they could sell their home on Opendoor for a higher price than on the open market.
FTC found that home sellers on Opendoor ended by selling their properties for a few thousand dollars less than what they would've gotten on the open market.
Opendoor made offers based on Projected Market Value and this price includes downward adjustments.
Opendoor claimed it made money from clearly disclosed fees. FTC found that Opendoor made profit by ‘buying low and sell high.’

Samuel Levine, Director of the Bureau of Consumer Protection at FTC, said, “Opendoor promised to revolutionize the real estate market but built its business using old-fashioned deception about how much consumers could earn from selling their homes on the platform.”

Actions Required

Opendoor agreed to the settlement terms. The FTC asked the iBuyer to:

Pay $62 million, which will be paid towards home sellers impacted by Opendoor.
Opendoor can no longer make any unsubstantiated, deceptive, or false claims through its marketing materials.
Opendoor must be clear about the money home sellers will recieve and what they will have to pay for Opendoor's services.
The iBuyer must back its claims of financial benefits with facts and reliable evidence.

Opendoor has accepted the settlement but still strongly disagrees with the allegations. Opendoor also clarified that the case was with regards to the company's activities between 2017 and 2019.

Opendoor has modified its marketing messages since then.

Want more real estate news? Visit our YouTube website and subscribe!

Subscribe Now!

Comments

Per Moneywise, Grant Cardone says, "I wouldn't touch the real estate markets of either Austin, Texas or Seattle Washington with a 10 foot pole."

‘I wouldn’t touch Austin, Texas or Seattle, Washington with anybody’s money’ : Grant Cardone says these two major US cities are some of 'the worst markets to be in right now' for real estate investors — here's why Story by Bethan Moorcraft • click here for the exact moneywise article prolific real estate investor Grant Cardone has singled out two U.S. property markets he wouldn’t touch with a 10-foot pole: Austin and Seattle. Cardone shared this hot take — and many others — in an interview with Moneywise after he prompted an AI chatbot to answer the question: “What are the 10 best markets for investing in rental real estate in America?” The AI Smith response started with: “The best markets for investing in real estate in America can vary depending on factors such as population growth, job opportunities, rental demand, affordability and potential rental income.” Up until that point, Cardone — who performed the task live on camera — was pretty happy with the response. But

Sad News. Tim Harrington of Austin, Texas passed away in mid-February 2024 from a heart attack. His Memorial Service is 2/29/2024 2 pm, @ Austin Ridge Bible Church in Westlake.

George Vance..... Just making sure you know that Tim Harrington passed away last weekend. Heart attack. Tim’s Memorial Service will be: 2/29/24 at 2 PM at Austin Ridge Bible Church at 9300 Bee Cave Rd, Austin, TX 78733 in Westlake. At the Worship Center building. Please spread the word. GVM speaking here, "Tim showed up on my 40th birthday at Pitch N Putt for an afternoon of golf and bullshit. Tim was in good spirits that afternoon after boasting of his mega million dollar commercial fresh sale in SoCo. St. Elmo @ the ol' Hills Cafe. Tim was a former SOUTHWESTERN door to door salesman and alumnus like me. A fellow bookman. Tim showed up @ my BookPeople booksigning event, for the "The Nation We Live In." Overall Tim was a good man and character . A worthy Austinite! Tim Harrington was quick to make friends. Just in February, randomly Tim and I participated in 3 straight days of Champions Real Estate School (off Hwy 620 & US 183) for full day required clas

The Future of Clarksville & Old West Austin? West 12th and West Lynn Blvd. Recap of Meeting Between the Neighborhood & Zydeco Development.

Recap of Meeting Between the Neighborhood & Zydeco Development That the CCDC Organized On December 6 th , the principals of Zydeco Development, Meghan Yancy and Wes Gilmer, as well as Miguel Rivera with Miro-Rivera Architects, talked with neighborhood residents about its plans for redeveloping thebuilding that formerly housed Nau’s, and where Anthony’s is still located, the parking lot between Anthony’s and Café Medici, the house where the coffee house is located, and the two houses on Eason that back up to the parking lot. Zydeco, a small, local real estate development firm founded by Howard Yancy, closed on all of this real estate about three months ago. Miguel Rivera who lives on Patterson, is Zydeco’s architect for the project. Meghan lives on 14 th Street. During the meeting, Miguel and Meghan emphasized that they understand how important the properties along West Lynn are to the neighborhood, especially the “Nau’s building,” because they are neighbors. Meghan explained

Search This Blog