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Home Builder Digital Marketing Podcast Digital Marketing Podcast Hosted by Greg Bray and Kevin Weitzel

178 Eliminating Home Buyer Uncertainty - Alex Toth and Shannon McMahon

This week on The Home Builder Digital Marketing Podcast, Alex Toth and Shannon McMahon from Opendoor join Greg and Kevin to discuss how home builders can eliminate uncertainty from the home buyer customer experience while still selling homes more quickly.

There are several steps many home buyers must complete before purchasing a new home. Alex explains, “…there's really three things that a customer has to get done before they can transact. One, they have to find a new construction home that they like, two, they have to be able to get qualified, and then three, they have to be able to sell their current home. So, a lot of times when a customer walks into that sales center, they probably haven't started the process of selling their current home.”

One of the most time-consuming and stressful parts of buying a new construction home is having to first sell your current home. Alex says, “This is really for every type of new construction home buyer. When you just think about the process of listing and all the things that go on before that, having to make repairs, having to get your home show ready, painting, renovating, cleaning, doing all of that. It's a pretty disruptive process to your day-to-day life.”

Opendoor offers home buyers the ability to sell their existing home while also securing the new home purchase. Shannon explains, “So, we're really here to help builders sell more homes and provide a really amazing experience for their customers that have a home to sell. So, what we do is customers can come to Opendoor, request an offer, complete a free virtual home assessment. And once they go into contract with Opendoor, we allow them to stay in escrow in their current home all the way up until their new home is built. And then we provide three free days of what we call late checkout, allowing them to have a really simple and seamless move from their old home into their new home.”

The transaction between a builder and a new home buyer can often be hectic and challenging for both sides. However, Opendoor can take much of the uncertainty and difficulty out of the process. Shannon says, “We really want to take this partnership stance that we're there to help support our builder partners and their customers in any way that we can. This is a really stressful transaction and likely the biggest transaction someone will ever have. We want both the builders and the customers to feel like they're in good hands, they trust us, and we're here.”

Listen to this week’s episode to learn more about how to sell homes faster while still delivering an easy, and flexible customer experience.

About the Guests:

Alex Toth

Throughout his 6+ years at Opendoor, Alex has focused on transforming the customer experience for new construction home customers and professionals alike. Since 2017 he has helped fuel over $6 billion in new home sales for Opendoor’s home builder partners, which include 8 of the top 10 national builders, as well as local builders throughout the country. He was Opendoor's first employee focused on the new construction space, and now leads a team of over 25 sales, business operations, marketing, and engineering professionals nationwide. Last year, Alex was named as one of ProBuilder’s 40 Under 40.

Shannon McMahon

In her nearly 5 years at Opendoor, Shannon has risen the ranks of Opendoor’s Homebuilder Partnership Program. From a Partner Manager helping leading builders and sales associates nationwide utilize Opendoor’s services, to a Strategic PM where she solely managed and grew the Lennar partnership by developing best practices, co-marketing, and new products, to now serving as a Sr. Manager of Partner Growth. Shannon currently focuses on big-picture strategy to help streamline and elevate multiple national builder relationships. Shannon exclusively manages top-tier partnerships with builders, such as Lennar and Pulte.


Greg Bray: [00:00:00] Hello everybody, and welcome to today's episode of The Home Builder Digital Marketing Podcast. I'm Greg Bray with Blue Tangerine.

Kevin Weitzel: And I'm Kevin Weitzel with Zonda Livabl.

Greg Bray: And we are excited today to welcome two guests to the show. We have Alex Toth, the Head of Business Development, and Shannon McMahon, the Senior Marketing of Partner Growth, both with Opendoor. Welcome, Alex and Shannon. Thanks for being with us today.

Alex Toth: Thanks for having us on.

Shannon McMahon: Thanks so much for having us.

Greg Bray: Well, let's start off by get to know you guys a little bit and tell us a little about yourself. Ladies first, Shannon, why don't you give us that quick [00:01:00] introduction, help us get to know you somewhat?

Shannon McMahon: Yeah, absolutely. Thanks so much for having us today. My name is Shannon McMahon and I have been with Opendoor coming up on five years in August. It's hard to believe. I currently live in New York and as you said, I'm Senior Manager of Partner Growth and Strategy. So, what that really means is I lead our large national home builder partnerships, such as Lennar and Pulte.

Greg Bray: All right. Alex, how about you?

Alex Toth: Yeah, absolutely, and again, thanks for having us on. I'm Alex Toth. I've been at Opendoor coming up on seven years, also in August. I'm based out of our San Francisco office. I'm our Head of Business Development. This was actually a very recent transition after running our home builder program for the last five plus years.

Kevin Weitzel: That's the business side of you guys coming in. However, if you are regular listeners, you'll know that my next question is, please tell us something personal about yourself, not business related that our listeners will learn about you on our podcast. Shannon let's start with you again.

Shannon McMahon: All right. Something non-business. So, I know I said I currently live in New [00:02:00] York, but I'd say a fun fact is I grew up surfing since I was five years old. So, I'm originally from California. I'm desperately missing the west coast during this New York heat wave right now, but yeah, I'd say that's my fun fact.

Alex Toth: That's our first surfer, Greg.

Greg Bray: It might be. It might be. Yeah.

Shannon McMahon: I'm honored. Thank you.

Kevin Weitzel: Alex?

Alex Toth: Yeah, absolutely. I'm actually an avid traveler, so I've been to six continents, 32 countries, and counting. I absolutely love to discover new places. I went on a backpacking trip after college with a bunch of friends and really caught the travel bug and haven't looked back. Love to meet new people, see new places, explore new things.

Kevin Weitzel: So, fun fact. You said 36 countries?

Alex Toth: 32, 32.

Kevin Weitzel: 32 countries. All right. I'm more than double that. However, I was in the Marine Corps. And trust me, Shannon, you look like you're a little excited about that. Trust me. Marine Corps hasn't taken us to vacation destinations. I assume you went Alex to much nicer places [00:03:00] than the Marine Corps sent me.

Alex Toth: They typically are pretty fun places, but I will have to chat with you after the show and get some travel wrecks.

Greg Bray: All right. Well, let's dive in a little bit more and find out how you guys started into kind of this home building industry and working with Opendoor. Alex, tell us a little bit about your journey.

Alex Toth: Yeah. I started off in operations and sales for Anheuser Busch after college, and I actually went to school with one of our co-founders, J. D. Ross. And I was really following the company very closely because he was a good friend of mine that was starting a pretty disruptive company, along with Eric, Keith, and Ian, our other co founders. I saw the company was expanding and thought it might be the right time to make a change. I've always loved real estate, had a passion for real estate. It seemed like the right time to get involved in real estate.

Something that I love about Opendoor is there's a lot of startups that I think are really about making life easier and simpler for kind of a smaller subset of folks. And Opendoor is a company that's really about solving a really, really challenging problem, trying to digitize the entire [00:04:00] US real estate asset class. So, it's really been a fun journey. Opendoor, on its surface, is clearly a real estate company. It's clearly a tech company, but it's also a very heavy operations company and a finance company. So, we have a very wide array of backgrounds and diverse individuals that come to Opendoor to help us solve this challenge. It makes it a really fun and interesting place to work.

Kevin Weitzel: I heard beer there, Anheuser Busch. No, I'm just kidding. So, Shannon, did you also come from a booze company? How did you get your way there?

Shannon McMahon: Unfortunately, I didn't.

Kevin Weitzel: Oh, okay.

Shannon McMahon: I have a little bit of an untraditional path, which I guess Alex does too here. I actually joined Opendoor on our recruiting team originally. I similarly grew up loving touring houses with my parents on the weekends for fun, and I just loved the mission and the problem that Opendoor was solving.

So, when I joined, I started recruiting for our home builder partnerships team. I got to know our leadership team, the product, and the problem that they were specifically solving, and it just resonated with me. I [00:05:00] think there's something really amazing about being able to help someone find and purchase their dream home and move their family and achieve that American dream.

So, I was lucky enough that Alex and the rest of the leadership team took a chance on me and gave me an opportunity four years ago now. So, I have held a variety of different roles and have gotten to know the industry really well, really thankful.

Greg Bray: All right. Well, we've danced around it a little bit, but we've made some assumptions that our listeners all know who Opendoor is and what they do. Let's make sure because I'm not sure that everybody probably has a complete picture of that. So, Alex, why don't you just give us a little more detail of what services you're offering? And then Shannon can tell us how those apply to home builders specifically.

Alex Toth: Yeah. Opendoor is an Ecommerce platform for residential real estate, and we allow people to buy, sell, and move with the tap of a button, which is pretty revolutionary. So, since 2014, we've really been focused on building that first [00:06:00] end-to-end experience for people to buy and sell digital first, on demand with simplicity and certainty.

You think about a lot of other industries that have kind of taken this path, whether that's, travel, booking a trip, taxis, you know, becoming Ubers. So, I think with that, we offer multiple products and a lot of different services that kind of break down that historically long, stressful, and complex process of buying and selling a home.

And that's broken out into three categories. So, the one that I think most people are probably familiar with on this podcast is our sell direct product, right? You enter your address, answer a few questions about your home, and then we give you a competitive cash offer that you're able to transact on directly with us.

The other one is Opendoor exclusives, which is a bit newer. So, that's a marketplace where buyers can sell, and sellers can connect directly to buy and sell a home with us. And that's without the hassle of kind of the traditional real estate model. And then the one that I think your listeners will most be interested in is our Opendoor for builders. So, this is a free partnership with builders to really eliminate that [00:07:00] contingent customer and allow them to immediately transact on a new construction home.

Greg Bray: Well, Shannon, tell us a little bit more about how that works with builders. That part of it.

Shannon McMahon: Yeah, absolutely. So, we're really here to help builders sell more homes and provide a really amazing experience for their customers that have a home to sell. So, what we do is customers can come to Opendoor, request an offer, complete a free virtual home assessment. And once they go into contract with Opendoor, we allow them to stay in escrow in their current home all the way up until their new home is built. And then we provide three free days of what we call late checkout, allowing them to have a really simple and seamless move from their old home into their new home.

So, it's really helping these builders solve that contingency problem and really just give an option to their buyers who have a home to sell who don't want to do a double move, a short-term lease, deal with the hassle of listing and showing their home. It's actually providing a really pleasant and positive real estate [00:08:00] experience.

Kevin Weitzel: So, let me get this straight. Tell me if I'm reading between the lines properly. So, on the builder side of the equation, you're offering them a service to mitigate the uncertainty of what am I going to do with my existing home before I buy this new home, and how can I work the timing down to literally the exact week that I want to move in? But let me ask you the very important question here. Are you also eliminating the commission, the co-bro commission that a builder would be paying an inbound realtor, or are you just monetizing it based off of the business from the existing home?

Alex Toth: There's kind of 2 different ways that we work. So, in some cases, we definitely do eliminate that commission, right? So, if somebody walks into a Pulte sales center and they have a home to sell, that sales associate might say, hey, why don't you check out Opendoor, get an offer, see if it works for you. If it does, it's going to make your life really easy.

This is going to be that, that really simple transaction that Shannon highlighted, allowing that customer to buy [00:09:00] directly from Pulte and then sell directly to Opendoor. And when that happens, we're not getting on the contract of the builder, we're not taking a commission. We really view it as a win for us, a win for the builder, and a win for the customer with that easy experience.

Now, if a customer does walk in and they already have an agent, and now maybe that agent's helping that customer buy and transact with Pulte in this example, that agent's probably still getting paid a commission from Pulte. But we're absolutely happy to still acquire that customer's exit home and have that same seamless transaction and process. So, you can use our product whether you're buying directly from a builder or you're working with an agent to buy from that builder as well.

Greg Bray: We have talked about this idea of the contingency problem, right? You mentioned that, that the builders have. I think it's real, right? But I'm not in that sales center every day. How big a deal is the contingency problem for builders? What kind of experience have you guys seen?

Alex Toth: It's definitely a real problem, right? And I think you guys know the industry well enough to know there's really three things that a customer [00:10:00] has to get done before they can transact. One, they have to find a new construction home that they like, two, they have to be able to get qualified, and then three, they have to be able to sell their current home.

So, a lot of times when a customer walks into that sales center, they probably haven't started the process of selling their current home. So, I think we do two things is we really allow that transaction to happen a lot faster. And we know about 40% of customers absolutely have to sell their home in order to purchase the next one, and about 60% of customers have a home to sell. So, that 20% gap might be able to afford to carry two mortgages.

It's definitely a real problem, and it definitely helps accelerate the sales. But we also bring in incremental buyers, right? So, there's just a number of folks out there that probably don't want to move twice. Something's happening in their life. They've got four kids, two dogs, a cat, and an iguana, whatever pets are out there these days. It really allows those customers to be able to transact on new construction, whereas maybe in the past they would have probably been more attracted to a resale home.

Greg Bray: Kevin, do you have [00:11:00] an iguana? You seem like you could enjoy an iguana.

Kevin Weitzel: All I've got is a beta fish. I'm sorry, a beta fish is how they're supposed to be pronounced.

Alex Toth: Those are a lot easier to show your home with.

Kevin Weitzel: You know what though? They hate going for walks though. They do. I do have a question. If this is having to open your kimono too much, please just let me know. But we just came out of this ridiculous sales cycle where used, pre-owned, disgusting, dirty, filthy, toenail clippings in the carpet homes were selling like this. You put it on the market and boom, they're already sold. Did that adversely affect Opendoor and your ability to be able to be infused into the scenario?

Alex Toth: It really didn't. That kind of was the misconception out there. I think a lot of folks understood, okay, I can sell my home really quickly in that cycle, like you talked about. We all heard about, I put my home on the market for a day and I got 10 offers. The way we like to summarize our product offering is convenience, control, and certainty. To keep it really easy, the three C's. I think the key [00:12:00] is our model absolutely works in both up and down markets.

Whereas even though a customer might be able to sell that home really quickly, if they're building a home, that's going to take them 7, 8, 9 months to build, and construction times got even longer than that in 2021 with all the supply chain issues and so much demand for homes. Customers, once they sold that home, might not have had a place to move. So, we still saw our product do really, really well and have a lot of customers who are attracted to that peace of mind and not having to move twice and being able to stay in their current home while their new construction home was being built.

So, we work absolutely in a down market where we're able to offer that customer that instant sale and not list their home for 3, 4, 5 months, but also in those up markets where then customers can feel really confident that they can stay in their home and not have to worry about moving twice.

Shannon McMahon: I think to piggyback on that, Alex, this made me think of a story that I heard a couple of weeks ago, from a sales associate we work with in California. Her daughter lived in New Jersey, had just had a new baby, and wanted to move her family closer to Grandma, but that's so chaotic, right? Like, [00:13:00] selling your home in New Jersey, trying to time it. What do you do with your family? Sales associate referred her to Opendoor.

She sold her home to Opendoor in New Jersey, bought the new construction home in California, was able to keep living and raising her child as her new home was being built. Had a really seamless close, and when I spoke to the family, they were like, that was amazing. This was an incredible experience, and I don't know how we would have done this without Opendoor. So, to Alex's point, she could have listed and sold immediately, but Opendoor provided this really amazing experience to keep her family in their home and find a way to transition out to California.

Greg Bray: Hey everybody, this is Greg from Blue Tangerine and I just wanted to take a quick break to make sure you know about the upcoming Home Builder Digital Marketing Summit that Blue Tangerine is hosting together with OutHouse, October 18th and 19th in Denver, Colorado.

This is gonna be an amazing event full of digital marketing insights, knowledge, best practices, and most importantly, some fun. So, be sure that you get registered today and come hang out with us, an amazing team of speakers and presenters that are gonna be together. Again, that's October 18th and 19th in Denver, and you can learn more and get registered at buildermarketingsummit.com. We'll see you there.

So, Shannon, as you work with these builders that you're partnering with, how are they integrating the Opendoor offering into their buying experience? Is this something that's early on up on the website beforehand? Is it something that's after they are a certain depth into that sales process? When do they bring it up? When do they put it in front of the prospective buyer? How are they integrating it?

Shannon McMahon: Yeah, absolutely. This is something I think about [00:14:00] every day, probably in my sleep. I dream about it as Alex knows. We pioneered this program back in 2016, and I think what we found over the years is the best way to help everyone win, the builder, the sales associate, the customer is providing people with the information they need to be successful. So, what I've seen is the best way to make a seamless sale for that sales associate is to have the customer fall in love with that new construction home that they're selling and then introduce Opendoor as a flexible certain option for selling their existing home.

So, from a really tangible perspective, Opendoor has built this really suite of tools for builders. So, to your question, it ranges from widgets on a builder home page prompting customers to request an offer, down to flyers in the sales centers. We do trainings and presentations, co-branded videos. The marketing is really amazing.

But what I see is on that daily basis, working with those sales associates is when they can introduce their customers to another [00:15:00] option, I think it really positions themselves as an expert in the industry and gives their customer choice. More than anything, I mean, with these partnerships, we really value the feedback. We iterate on our product and we work with them together. So, we have an entire field team that's focused on working with these sales associates and divisions on a daily basis to help make sure they feel comfortable introducing the product. We can introduce it further up in the funnel. So, kind of a variety of options really.

Greg Bray: So, at its heart then, it seems to be coming after the buyer is a little further in the journey, but then trying to figure it out, how they can move forward and how they can best schedule and plan and deal with some of the uncertainty like Alex was talking about. I love the idea of removing uncertainty. Buying a home is so many decisions, right? So many moving parts and selling your existing home is a pretty big piece of all of that. For sure.

Shannon McMahon: Yeah. I used to work with a sales associate a couple of years in Denver who had a [00:16:00] customer who was driving home from the grocery store on a Sunday, happened to see the new home community, decided to stop in on a whim. Wasn't thinking about moving, fell in love with the new home, got an Opendoor offer, and went into contract.

He later told the sales associate, if I had gone home and looked at how much I had to pack and clean and show my home, I wouldn't have done this. But since it was so easy, I decided to move forward. So, to your point, it's that ease, convenience, simplicity, and bringing those incremental buyers in for builders.

Kevin Weitzel: How disgusting was that person's home, that they were worried about the craziness of having to pack their belongings?

Shannon McMahon: They probably had lots of iguanas is my guess.

Kevin Weitzel: It could have been. Yeah.

Alex Toth: And Kevin, I think that's a great point because I don't necessarily think it's always about, oh, you know, this is for a certain type of buyer. This is really for every type of new construction home buyer. When you just think about the process of listing and all the things that go on before that, having to make repairs, having to get your home show ready, painting, [00:17:00] renovating, cleaning, doing all of that. It's a pretty disruptive process to your day-to-day life.

Something we hear a lot is, oh, this is for a very specific type of customer, but in reality, I think so many people want to use a product like Opendoor because it's so familiar to them with the way they operate in day-to-day life and buying things on Amazon, ordering, you know, food from DoorDash, calling Ubers, like we talked about before. This really feels like a very modern process to our customers.

Kevin Weitzel: The process can petrify a lot of people. I mean, I know that just from personal experience, again, I come from back in the auto motorcycle industry. I've probably personally brokered 25 to 30 car purchases for friends because they were just mortified at the thought of even going into a dealership and dealing with the hassle of it. So, I get it. I understand it. You're basically providing an easy button.

Greg Bray: So, I have a vocabulary question, though, and this is kind of coming from my own lack of clarity. There's this term out there called iBuyer. Which I [00:18:00] discovered did not come from Apple’s iPhone, right? Or iPod, right? It's, I don't know if there's a connection there or not that I'm not aware of. But what is encompassed in iBuyer, and what is the role of Opendoor connected with iBuyer and how just from a language standpoint as people are learning about this opportunity?

Shannon McMahon: Yeah. So, we did not coin the term. I don't think Apple did either. I'm not sure who did. But it just it stands for instant buyer. So, at our core, Opendoor is just making it easier and more certain for people to move. So, if you think about the residential real estate industry being a two trillion-dollar sector of the economy, it's basically gone untouched for decades. I think Opendoor is really just trying to modernize that.

So, at a time when the housing market is uncertain, I think we've said that word for the past three years at this point, but 20% of transactions are falling through, interest rates feel like they're changing on a daily basis. People are worried about inflation, Opendoor is really just trying to bring a seamless and certain solution to buyers and sellers. [00:19:00]

Greg Bray: I'm interested to know basically how well home sellers are reacting to this opportunity. Are there any type of metrics that you could share that give us an idea of how folks like this or don't like it? After they test it out, do they move forward or not? What type of insights do you have on the engagement with sellers?

Alex Toth: Two of the metrics that we can share that I think really highlight our product and how that product resonates with customers is first, our total number of transactions. So, since inception, we've done over 240, 000 transactions. So, I think that shows that we are covering a really wide array of customers and all types of customers that are looking to transact. And then the second is that our NPS, the Net Promoter Score, which I'm sure your marketing folks are aware of, is greater than 80. So, it's a product that is a widely available product and a product that really, really resonates with customers.

And one of the things that really convinced me of this when I joined is I thought that you [00:20:00] know, Opendoor being very digital, very tech-forward would be something that maybe resonated a lot more with Millennials. But one of our first communities that we launched and piloted the home builder program with was an active adult community in Las Vegas.

And what we saw is that when customers came in, and they heard about Opendoor in that active adult community, they said, wow, you know, I've sold 3 or 4 homes, I know how painful this process can be, and something like Opendoor is exactly what I'm looking for. We saw really great success there, a really high NPS, and customers that traditionally might be viewed as not as tech-forward as younger generations, really attracted to our product.

Greg Bray: How technically savvy does a potential home seller need to be in order to engage with you guys?

Alex Toth: You know, that's the thing. It's really not too technically savvy. It's pretty easy. You answer a few questions about your home. You tour us around your home over video. We do a quick assessment of the home. We come around, walk around the outside and we give you that final number that you can [00:21:00] enter contract with to remove that contingency from the home builder.

Greg Bray: And you hinted that I don't have to fix stuff too before we do that, right? Is that really true? I don't have to like repaint and fix the hole in the roof or whatever that's going on?

Alex Toth: That's exactly correct. You don't have to do anything. We handle all of that after you've moved out. We purchase the home, we make all the repairs to the home, we get it list ready, and then we're selling the home as Opendoor.

Kevin Weitzel: And just to make sure, we're talking about strictly traditional real estate. Like Matt Foley can't come to you guys and ask for a purchase of his van down by the river, correct?

Alex Toth: We're not in vans yet, but as a business development individual on our team, I might be starting to look into vans, Kevin.

Greg Bray: Kevin gives away so many good business ideas to our guests on the show that we don't get any commissions on. Just for the record. I just want to go on record.

Kevin Weitzel: It's a gift. It's just what I do.

Greg Bray: Well, Shannon, you dropped some large builder names earlier in our conversation and people that you work for. And sometimes I think when our audience hears that they go, oh, this is for large national [00:22:00] builders. What size builder is a good fit for partnering with Opendoor?

Shannon McMahon: We will work with builders of all sizes. Whoever wants to provide this product for their customers. I think we are looking to change the industry and provide this across the whole industry. So, national, regional, independent builders, you name it. So, some of those, the larger ones, right, Lennar, Pulte, Dream Finders, Shea Homes. We have all these partnerships really across the country. And I think what's great is we've partnered with a lot of these builders since 2016, and they continue to utilize Opendoor because it creates another sales tool for their management, their sales teams to help overcome those objections.

So, I mentioned earlier, but we are in 50 markets nationwide, and we have a really amazing regional field team that is experts in their market and works with all the builder partners in their territory to do in-person onboarding, training sessions, and continue to work with them every step of the [00:23:00] way. So, really any size builder, we would love to work with them.

Greg Bray: It sounds like then it's a little bit more than just, hey, hand them this Opendoor flyer when they walk in and they'll go figure out their home. You're actually training the sales agents how to talk their perspective buyer through that process. Am I understanding correctly?

Shannon McMahon: Yeah, absolutely. We really want to take this partnership stance that we're there to help support our builder partners and their customers in any way that we can. This is a really stressful transaction and likely the biggest transaction someone will ever have. We want both the builders and the customers to feel like they're in good hands, they trust us, and we're here. So, we help train those sales teams, we answer their questions, we work with them every day to really make sure they feel supported and comfortable presenting this option to their customers.

Greg Bray: So, Alex, are there any big misunderstandings or myths about Opendoor that are out there that you think [00:24:00] that, gosh, when people hear this, they have this kind of wrong expectation, and this is your chance to kind of tell why that expectation or understanding is wrong. What do you run into?

Alex Toth: The line we get the most, Greg, is it's too good to be true, right? It's still a very new concept. We started out with the product in 2014 in Phoenix, and we've been expanding across the entire US over the past nine years, and so it's still new to a lot of folks, and a lot of people still haven't heard of Opendoor.

And I think when they hear about, okay, I can go online, I can sell my home to a company, make this process really simple, really, really easy, and be able to transact on my timeline. I think that's one of the biggest things is being able to transact on that timeline, move that closing date as many times as you want. Folks are often like, what's the catch here? What am I missing? And they're not missing anything. I think that's the thing is we're solving that large consumer pain point. We're absolutely able to make that transaction happen, and we're able to offer that peace of mind.

And one of [00:25:00] the great things about working with the industry and working with sales associates is that once they do have a transaction, they're also completely bought in where they say, Oh, wow, that was so easy. I didn't have to worry about the fact that we had a two-week construction delay because my customer is sitting in their current home and I can just call them up and say, Hey, it's going to be two more weeks. Don't worry about it. I've already talked to Opendoor and there are in line with your new closing date as well.

It's really this idea that it's too good to be true. And so a lot of what we do is just really focus on education and help people understand how this all works and why our company exists.

Greg Bray: And just to clarify, when people are still in their existing home, are they paying now rent to Opendoor during this time while this is going on? Have you already bought it or it's just a, we promised to buy it three months from now kind of a arrangement?

Alex Toth: Yeah. So how the process works is that a customer comes into that sales office, like we talked about. They find their dream home. They fall in love. They're all excited. They get their offer from Opendoor, and so we're putting that customer into contract. They're in contract for 3 months, 5 months, 9 [00:26:00] months, however long it takes them to have their new construction home built.

So, there's no additional cost to the customer whatsoever. So, they're staying in that home the entire time. They're paying their mortgage just like they would if they were in a resell contract and closing in 30 days. We're just allowing them to stay in that home, and then we have a simultaneous close. So, we'll close with the customer the day before they buy their new construction home. And then we actually allow them to stay in their home a few extra days, 3 extra days after they've closed with us to get everything moved out and to make that process and that move into their new home really, really easy.

I think kind of just to give some numbers to that. Since we started this program, we've helped over 15, 000 customers. That's been over 6 billion in new home sales for our new construction partners to have this type of transaction be completed.

Greg Bray: It does sound a little too good to be true, Kevin. What do you think?

Kevin Weitzel: Well, see, I have the luxury of being in the Phoenix market, so I've known Clinton Carroll for quite so many years and he's a good dude and he's kind [00:27:00] of, you know, give me the whole rigmarole about the whole program. I like to rib him every time we run into each other at industry events because I'm like, hey man, are you going to have somebody out of India call me up and ask me for the 35th time this month that, you know, do you want to sell your home? And he's like, no, no, it's not going to happen.

Greg Bray: Well, Shannon, Alex, we really appreciate the time you spent with us today. I know I've learned a lot more and understand better what you've got. Hopefully, our listeners have to. As we kind of wrap up, any last words of advice for builders, just trying to help them improve their customer experience and things? Shannon, we'll let you go first.

Shannon McMahon: Yeah, I would say my lasting advice is that this partnership Opendoor for Builders is a free tool for builder sales teams to help them sell more homes and provide this really amazing, simple, certain transaction for their buyers. I might be biased. I probably am, but over my time here, I've spoken with hundreds, if not thousands of sales associates who've really embraced the Opendoor for builder’s product.

And it's so [00:28:00] amazing, exactly why I joined five years ago, that I get to see people move into their dream home and change their life because of what we're able to provide. So, I'd say whether you're a builder, sales leader, a sales associate, someone who's just looking to buy new construction and has a home to sell, please check us out, reach out. We'd love to work together.

Greg Bray: Alex, any last thoughts?

Alex Toth: I don't think I can beat what Shannon just said.

Greg Bray: Okay. So, Alex, we'll ask you then if somebody wants to learn more and connect with you guys, what's the best way for them to reach out?

Alex Toth: Send us an email. They can reach out to us at builder@opendoor.com. Or feel free to connect with us on LinkedIn. I'm on LinkedIn. Shannon's on LinkedIn. We also have Opendoor for home builder partnerships LinkedIn page that you can follow. Our emails are alex.toth@opendoor. com and shannon.mcmahon@opendoor.com.

Greg Bray: All right. Well, thanks again for being with us, and thank you, everybody, for listening to The Home Builder Digital Marketing Podcast. I'm Greg Bray with Blue Tangerine.

Kevin Weitzel: And I'm Kevin Weitzel with [00:29:00] Zonda Livabl. Thank you.

Shannon McMahon: Thanks so much for having us.

Alex Toth: Thank you guys.

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