Slides for 441

1. Jordan Zhu (jordzhu)

2. The home-selling problem

3. The home-buying problem
● Potential repairs for house
● Scheduling tours of houses
● 30-45 days to buy house

4. Product: home-sellers

5. Product: home-buyers

6. Financials
● $1B funding
● $2B valuation
● $200M revenue

7. Business Model

8. Phoenix analysis
Home sales volume 1000 2016 Opendoor sales
Appreciation 5.5%
Service charge 9%
Purchase Value $217,370
Revenue $31,518,650

9. Phoenix analysis - cont

10. History
Founded by Eric Wu
March
2014
Phoenix as first
market
Dec 2014
Offerpad and Knock
launched
2015
Zillow Instant
Offers launched
May 2017
OpenListings
acquired
Sept
2018

11. Secret sauce

12. Competition
Opendoor Offerpad Knock Zillow Instant
Offers
Founded 2014 2015 2015 2017
Funding $1B $410M $34.5M Public
All day open
house
Yes Yes No No
Money-back
guarantee
Yes No No No
# of cities 15 6 4 3

13. Prediction - Success!
● Strong growth
● iBuyer space expanding
● Room for more than 1

14. References
https://www.zillow.com/sellers-guide/average-time-to-sell-a-house/
https://www.zillow.com/marketing/zillow-offers-faq/
http://www.mikedp.com/articles/2017/7/31/ibuyer-market-update-opendoor-and-off
erpad-in-phoenix
https://www.opendoor.com/blog/how-we-take-the-process-out-of-the-selling-proce
ss-video
https://www.crunchbase.com/organization/opendoor-2