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Edited by Galina Velgach
Written by Greg Isaacson
Edited by Galina Velgach
How Opendoor offers work | Should you sell to Opendoor? | FAQs
Opendoor offers are often fair, but a bit less than what a seller could get by listing their house on the open market.
Like other iBuyers, Opendoor offers close to market value for a home but deducts a service fee, closing costs, and repair costs. You also won’t be able to negotiate an Opendoor offer.
Speed, convenience, and predictability are the main advantages of selling to Opendoor. It works best for sellers who are looking for a quick, easy sale that can be handled online.
Not sure if your Opendoor is offering a fair price for your home? We recommend using Clever Offers to compare quotes from other iBuyers and real estate investors. You’ll also get a free home valuation report to see if you’re getting a good deal for your home. Get fair cash offers today!
Should you sell your house to Opendoor?
Selling your house to Opendoor is a good option if you’re looking for a quick, all-cash sale. The company will pay near market value for your house, minus fees. The entire sale process, from initial contact through the closing, takes as little as two weeks.
Downsides to working with Opendoor
- The offer may be lower than what a motivated buyer would pay on the open market.
- You won’t be able to negotiate much.
- Opendoor has strict criteria for the homes it buys, and only in 53 U.S. cities.
If your home doesn’t qualify for Opendoor because of its location, age, or condition, you can consider selling to a cash buyer company instead.
🚨 Consumer alert! In August 2022, Opendoor settled a lawsuit with the Federal Trade Commission over allegedly misleading customers about its true home sale costs, including repair fees.
Consider your alternatives
A cash buyer could be the simplest solution if your home is in poor condition and may be tough to sell on the open market, or to an iBuyer like Opendoor.
Cash home buyers, like We Buy Ugly Houses, provide fast cash offers on distressed homes and a speedy, convenient closing process. They generally pay up to 70% of the property’s ARV, but they don’t charge service fees, closing costs, or repair credits.
If your goal is to maximize profit, listing with a real estate agent is the best option. You’ll have to pay realtor commissions, but that’s usually offset by a higher sale price compared to what Opendoor would offer.
How does Opendoor compare with your other home selling options? Its competitor Offerpad also pays slightly below market value for homes and charges a fixed 5% service fee. Repair costs and closing costs are similar.
Opendoor vs. listing with a realtor
Another option is to have a real estate agent list your home on the open market. It normally costs between 5–6% in realtor commissions, along with 1–3% for seller concessions and 1–3% for closing costs.
In total, it costs about 7–10% of a home’s sale price to sell to Opendoor vs. 7–12% with an agent.
But an agent can often help you fetch a higher price for your home than what you’d get by selling to an iBuyer. Your agent can attract multiple buyers and competitive offers.
» LEARN: How Much Does it Cost to Sell a House? True Costs Revealed
How Opendoor offers work
Opendoor pays near market value for homes, minus its service fee (5%), repair cost deductions (typically 1–2%), and seller closing costs (1–3%).
For example, on a $400,000 house, Opendoor would deduct a $20,000 service fee and repair and closing costs of $8,000–20,000.
| None | N/a |
|---|---|
| Sales price | $400,000 |
| Service fee (5%) | $20,000 |
| Repair deductions (1%) | $4,000 |
| Closing costs (1%) | $4,000 |
| Net proceeds | $372,000 |
Opendoor will present you with a preliminary offer first, then a final offer. If you accept the preliminary offer, Opendoor will deduct estimated repairs and closing costs to come up with a new figure. That final amount will be lower than your preliminary offer, possibly by thousands of dollars.
Opendoor preliminary offer
The first step in selling your home to Opendoor is to request an offer on the company’s website. Opendoor generates a quick preliminary offer on your house based on its condition, features, and upgrades.
Your preliminary offer — an estimate of your home’s final price — will also include sale prices of comparable homes. This preliminary offer is good for seven days, but if you schedule a virtual walk-through, Opendoor will honor its offer for 14 days.
Opendoor final offer
To verify the home’s condition and to determine a repair budget, Opendoor will perform a virtual walk-through, either through a video call with an Opendoor rep or a self-guided walk-through.
Opendoor’s final offer will be lower than its preliminary offer. The final offer takes into account the property’s condition, estimated repair costs, and seller closing costs.
Opendoor generally offers fair market value for homes. But it’s a good idea to get a professional home value estimate before selling to Opendoor to determine your home’s true value.
You can request a free comparative market analysis (CMA) from a realtor and compare it with quotes from Offerpad and other cash home buyers.
Opendoor offers FAQs
Are Opendoor offers legitimate?
Yes, Opendoor offers are legitimate. It's the largest iBuyer in the U.S., operating in more than 50 cities. Opendoor provides quick, all-cash offers that are typically a bit less than fair market value for a home. It also deducts 7–10% for various service fees.
Can you negotiate offers with Opendoor?
Opendoor says it is willing to negotiate by phone or email until an agreement is reached, but you'd need to show that the company made a significant error in its assessment of your home for it to adjust its offer. Learn how to compare Opendoor offers.
Is selling to Opendoor worth it?
Selling to Opendoor is worth it if you’re comfortable handling everything online in exchange for a quick sale. You'd likely pocket more money by working with a real estate agent. But Opendoor is a choice if you don’t have time to navigate the often lengthy, stressful, and complicated process of selling your home on the open market.
Related reading
Are Opendoor Reviews Positive? Learn what Opendoor’s customers are saying about the company and if its offers are fair or not.
Opendoor Preliminary Offer vs. Final Offer. Opendoor’s final offer will be lower than your preliminary offer, possibly by thousands of dollars. Learn more about its process here.
What Is an iBuyer? Selling to an iBuyer like Opendoor can be convenient, but it also comes with a few drawbacks. Learn more about how iBuyers work and if you can trust one to buy your home.
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