Opendoor - A New Way to Make Real Estate Liquid

Opendoor uses an automated valuation model or AVM algorithmically priced homes. The sellers enter their address, answer some questions, and receive an offer instantly. Opendoor charges a 6% in the form of a discount to cover fees plus a 0-6% depending on riskiness. Its average today is 7.3% total, that original 6% plus a 1.3% liquidity discount. It used subsequent rounds to de-risk, scale, expand, acquire, and drive down costs.