Opendoor is an iBuyer, which means it makes all-cash offers on houses with flexible closing timelines. Opendoor probably pays less for homes than sellers would get on the open market and charges a 5% service fee.
Compared to other iBuyers, Opendoor has reasonable fees and tends to make higher offers on houses.
Opendoor is a great option for sellers who prioritize certainty and speed. Sellers who instead prioritize getting the highest dollar amount for their home and have the time to wait for a higher offer might be better off selling with a full-service agent.
Real estate agents generally charge 6% of the sale price when a home sells, but Clever Real Estate can match you with a top local realtor who charges a listing commission of just 1%, saving you thousands of dollars in commission when you sell your home!
Is Opendoor worth it?
With a 5% service fee, Opendoor might not be worth it for everyone. However, if you're in a rush and need to sell your home quickly with minimal hassle, Opendoor is definitely worth looking into.
It's unlikely that Opendoor will pay you as much as you'd be able to get on the open market.
Then again, there's no guarantee that you get a quick, predictable sale on the open market either.
All you have to do to get an offer from Opendoor is submit the estimate form online. You'll have an offer within 24 hours, and if you aren't pleased with it, there's no penalty for saying no.
» READ: Our full review of Opendoor.
Pros and cons of selling to Opendoor
If Opendoor is interested in your home, you’ll receive an offer within 24 hours
You’re not likely to sell your home for as much as you would get on the open market
The sale can close on your timeline, anywhere between 14–60 days after the offer is accepted
You have no control over the cost of repairs
Guaranteed all-cash offers mean there's no risk of the deal unexpectedly falling through
There's very little room to negotiate with Opendoor
There's no fee for cancellation before closing
The 5% fee may be more costly than a commission with a discount broker
An offer from Opendoor is valid for seven days. You can use that time to compare their offer to other potential options.
If there are other iBuyers in your area, get offers from them to compare. You can also consult with a local real estate agent who can perform a competitive market analysis on your home to give you an idea of what your home might get on the open market.
Does Opendoor pay a fair price?
Yes, according to the experts Opendoor pays a fair price for homes. Real estate tech strategist Mike DelPrete found that in 2021 Opendoor consistently paid more for homes than its competitors in Phoenix, the largest iBuyer market in the U.S.
Opendoor isn't a house flipper and doesn’t seek out undervalued properties. It pays close to fair market prices. This means in sellers markets, where there are more buyers than homes to buy, Opendoor will make even more competitive offers.
The best way to find out whether Opendoor’s price for your home is fair is by getting its free, no-obligation offer. Along with its offer, Opendoor includes information about the homes it compared to yours to establish a purchase price, and its projection for the market in your area.
Does Opendoor negotiate?
Opendoor typically doesn't negotiate its offers or fees. Generally speaking, what you see is what you get.
That said, if you don't agree with Opendoor or feel that something's been overlooked, you can request a second evaluation and submit additional evidence to support your case for a higher offer.
It's also worth mentioning that unlike some other iBuyers, Opendoor allows you to back out of the sale without a penalty if you disagree with its final pricing.
» LEARN: Tips for negotiating with Opendoor.
How much are Opendoor's fees?
Opendoor charges three types of fees:
Service fee: currently 5%
Repair costs: these may or may not be required (1–2%)
Closing costs: you'll pay typical seller closing costs (1–3%)
Opendoor does not give you the option to use your own contractor for repairs, so these costs are impossible for you to control.
✍Editor’s note: You might not make as much money selling your house through Opendoor, even though the total cost (approximately 10%) is lower than a traditional sale (approximately 11.2%). Opendoor generally pays less for homes than you would get on the open market because the company's goal is to resell each house quickly and make a profit.
Here's a comparison of what you can expect to net from Opendoor, assuming you pay on the higher end of estimated fees, versus what you can expect to net from a traditional sale.
Full-service agent net
Opendoor’s fees add up to 10% of the sale price. Closing costs and repair costs will vary by sale.
Homeowners pay 11.2% on average to sell their home, according to our research and analysis of real estate industry data. Commissions for the brokers and agents involved in the sale, repairs, and closing costs make up the majority of the costs.
Opendoor’s competitor Offerpad charges similar fees to Opendoor but, according to experts, it pays less (on average) for homes.
Does Opendoor pay closing costs?
The short answer is unfortunately no. You'll still be responsible for closing costs with expenses that are on par with a traditional sale.
You'll be expected to cover closing costs such as title insurance, escrow costs, recording fees, notarization, and transfer taxes to name a few. In total, your closing costs will add up to between 1–3% of the sales price.
How quickly will I sell my home with Opendoor?
Opendoor can make an offer on your home in less than 24 hours and can close in as few as 14 days. In 2020, a year where homes sold historically quickly, it still took an average of 78 days for the home-selling process to run its course.
In other words, Opendoor truly distinguishes itself from the full-service agent home-selling model when it comes to speed.
The benefit of Opendoor’s quick closing times is not just speed for speed’s sake; in real estate, time really is money. The time between when an agreement is reached and a sale closes is an often difficult period where appraisals and contingencies can jeopardize a traditional sale.
As most homeowners know, owning their property isn’t free. Carrying costs — like your mortgage, insurance, and maintenance costs — don’t disappear while you’re selling.
Should you sell to Opendoor?
There's really no universal answer — it depends on your situation and goals as a home seller.
Opendoor offers speed, simplicity, and convenience, which is invaluable to some sellers since selling a home is such a high stakes, complex process.
On the other hand, you will probably get more money for your home if you list it on the open market with the help of a real estate agent.
Requesting an offer can be a great first step if you're trying to weigh your options.
It's free to find out if your home qualifies to sell to Opendoor and request a cash offer on the company's website. Requesting an offer can be a great first step if you're trying to weigh your options.
Before you accept an offer, it's worth speaking with a realtor to find out how quickly they think your house would sell on the open market, and what it's worth.
FAQs about Opendoor
Opendoor typically pays slightly less than what your house would likely sell for on the open market. Unfortunately, Opendoor usually won’t negotiate — you have to accept its price or walk away. But, since you can request an Opendoor offer with no obligation, you can reject the offer if you decide it's not worth it.
Mike DelPrete. "iBuying is Hard: Zillow Pauses New Purchases."