Opendoor CEO and president out as iBuyer shakes up exec team

Opendoor CEO and president out as iBuyer shakes up executive team

Weeks after it reported shedding almost $1 billion within the third quarter, the main iBuying firm shook up its prime executives. Founder Eric Wu was changed as CEO by CFO Carrie Wheeler, and President Andrew Low Ah Kee has resigned.

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Amid ongoing turmoil for the main iBuyer firm, Opendoor introduced Thursday that it had changed its chief government officer and its president has resigned.

The adjustments come weeks after the corporate reported losing nearly $1 billion within the third quarter of the 12 months and because it holds onto houses whose values have dropped with the market downturn.

The corporate introduced Carrie Wheeler, till now its chief monetary officer, had changed Opendoor founder Eric Wu as the brand new CEO, efficient instantly.

“I’m honored to have the chance to guide Opendoor as we rework the best way to purchase and promote actual property,” Wheeler mentioned in a press release asserting the adjustments. “We’ve constructed a strong monetary basis with a powerful stability sheet and liquidity place that units us as much as not simply handle via this present housing cycle however emerge stronger with market management.”

Wu, who based Opendoor in 2014, will stay with the corporate as its president of Market. 

Wu had been scheduled to present a speech at a know-how convention held by Credit score Suisse on Wednesday. Shortly earlier than the occasion, Opendoor eliminated the announcement and Wu apparently didn’t converse on the convention.

A spokesman advised Inman on Wednesday that “there was a scheduling change, so needed to cancel.”

In a public assertion and a submitting with the U.S. Securities and Trade Fee, the corporate introduced President Andrew Low Ah Kee, who had been Opendoor’s president since November 2020, resigned from the corporate.

Low Ah Kee will act as a strategic adviser via the top of the primary quarter of subsequent 12 months, the corporate mentioned.

In an interview with Inman two weeks in the past, Low Ah Kee mentioned the fourth quarter would seemingly be a “trough” for Opendoor, indicating extra losses are seemingly forward.

The corporate introduced Christy Schwartz as its new interim CFO as Opendoor appears to be like for a everlasting one.

Opendoor has been working to roll out new options that current much less danger to the corporate. Traditionally, iBuyers have bought houses rapidly and carried out some repairs earlier than promoting them, ideally at a revenue.

That’s confirmed troublesome of late, and Redfin recently announced it was the second main iBuyer to fold up that facet of the enterprise. (Zillow ended its iBuying program final 12 months.)

Opendoor has been shopping for fewer houses of late. Within the second quarter, it purchased 3,653 extra houses than it offered because the market was reaching its peak, and it’s nonetheless working to promote lots of them.

Wu initially began a tech-based actual property firm that he later offered to Trulia in 2010. He has mentioned his purpose was to make shopping for and promoting houses straightforward sufficient to do on a cell system.

The corporate is transferring ahead with a product known as Exclusives.

Opendoor started work on Exclusives greater than a 12 months in the past, when the actual property market was nonetheless booming and earlier than mortgage charges started their record-setting and deal-killing rise. The corporate truly teased the platform in May after which introduced the buyer-focused part of the marketplace in August.

The imaginative and prescient for Exclusives is that it’ll finally be populated by many unbiased consumers and sellers. And in that means, intention apart, it successfully is an asset-light means for the corporate to stay central in shoppers’ actual property transactions. Opendoor prices sellers a 5 % payment — that’s the way it makes cash from this system — however avoids having to place up its personal money to buy houses. It additionally doesn’t should shell out for expensive repairs.

Wu’s new place would enable him to deal with Exclusives, Wheeler mentioned within the assertion.

“We will likely be centered on persevering with to drive operational excellence, enhancing our unit economics, and delivering a best-in-class buyer expertise,” she mentioned. “Moreover, we’re excited to proceed to innovate and empower Eric to drive the event of our third-party market.”

Email Taylor Anderson

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