FTC Defends Home Sellers
Fines Opendoor $62 Million

Jennifer Arsenault, Flotilla Managing Broker & Owner

In April, we brought to you in this newsletter our research of Opendoor's business practices in Oklahoma City . We dug into the public tax records of home sales by Opendoor in Oklahoma City, and found that in 70% of home sales, sellers lost more money selling to Opendoor than a traditional real estate sale through a brokerage. In many cases, only 2 or 3 months later, Opendoor turned around and sold the home for tens of thousands of dollars more —that's home equity lost by Oklahomans going to a San Francisco-based corporate brokerage.

We're now happy to report that the FTC agreed with our research, and has stepped in to fine Opendoor $62M due to "misrepresentation" in their marketing stating they made money from "disclosed fees" when, in reality, their business model was to "buy low [from homeowners] and sell high" . The FTC has ordered Opendoor to "stop deceiving potential home sellers", and the $62M fine will be used for consumer redress.

Richard Mize, Senior Business Writer at The Oklahoman, published our original story on the front page of May 13th edition of the newspaper . He reached out to us again following the breaking news of Opendoor's fine from the FTC. The August 7th edition features this statement from Jennifer Arsenault, Flotilla's CEO & Managing Broker...

"[Jennifer] was pleased to see the FTC go after the company, but doubted that even a $62 million settlement would hurt it much considering Opendoor increased its revenue to $8 billion in 2021. $62 Million is a drop in the bucket. But it is a huge win for helping customers from being deceived."

Opendoor & Zillow Partnering Together

Zillow, the Seattle-based real estate advertising company, and Opendoor, a national brokerage headquartered out of San Francisco, announced only days after the FTC's fine that they are joining to put Opendoor’s offers in front of Zillow’s viewers.

Why Flotilla?

At Flotilla, we firmly believe that our clients are best served by local professionals who are your friends and neighbors, and who know the Oklahoma real estate market. When you list your home with a Flotilla Partner, you're getting an OKC real estate expert's knowledgeable opinion of your home’s true value, not from an algorithm.

We believe it takes a real estate professional to take into account your home’s unique features to give the full story of its value, and a marketing plan with strategies designed to get top-dollar for your home—not a discounted price for a quick sale.

After reviewing ALL of your home’s highest & best offers with Flotilla Partner by your side, you can rest easy knowing you received the true equity of your largest investment.

© 2022 Flotilla Holdings, Inc.