Opendoor—the online real estate marketplace and instant home buyer—has acquired tech-focused, digital mortgage company RedDoor for an undisclosed amount in an effort to expand the iBuyer’s consumer financing offerings.
RedDoor, which launched in 2018 and calls itself a ‘digital first mortgage brokerage,’ developed a quick loan application process for customers that can pre-approve an application within 60 seconds that Opendoor hopes to integrate into its own platform shortly.
“The acquisition of RedDoor will accelerate our roadmap and ability to provide a best-in-class consumer experience,”
said Tom Willerer, Opendoor’s Chief Product Officer.
The announcement comes in the wake of Zillow’s decision to wind down its iBuying arm and has many asking whether or not iBuying is a viable business model moving forward.
However, Opendoor co-founder Keith Rabois maintains that Zillow’s stumble was a result of their misuse of the technology and not the process of using technology itself to make quick cash offers on homes.
Following Zillow’s sudden departure from the home-buying market, Opendoor reported better-than-expected Q3 results with $2.3 billion in revenue (an increase of 91% from Q2) and 5,988 total homes sold (an increase of 72% from Q2).