Is Opendoor Worth It?

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  Written by Michael Warford

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  Edited by Katy Byrom

Does Opendoor pay market value? | How Opendoor makes offers | Repair costs | Opendoor alternatives | Should you take Opendoor’s offer? | FAQs

Opendoor’s offers are rarely as high as what you’d get on the open market. And the company sometimes charges high repair fees, which can further eat into your sale proceeds. But those downsides may still be worth it for sellers who prioritize a quick and easy home sale.

With Opendoor, you can close in as little as 14 days. Plus, you won’t have to deal with the hassle of showings, home prep, or repairs. In some cases, Opendoor’s offers are also close enough to market value to make them especially appealing.

If you’re curious whether Opendoor is offering you a fair price, services like Clever Offers can help you get competing quotes from leading cash buyers. You can also request a free home valuation from a top local realtor to help you compare offers against your home’s potential sale price. The service is free to home sellers, and there’s no obligation to move forward with an offer or listing.

Does Opendoor pay market value?

During the pandemic, when real estate prices were rising rapidly, Opendoor gained a reputation for offering close to or even more than market value for homes.

However, a recent analysis of more than 200 homes bought and sold by Opendoor in the northeastern United States shows that the company is now paying significantly less. From January to September 2024, for example, Opendoor paid home sellers an average of 93% of their home’s eventual resale value, down from 95% in 2023.

Average purchase price to resale price for homes bought by Opendoor

	2024	2023
Avg. Opendoor purchase price	$536,922	$539,801
Avg. resale price	$567,307	$558,901
Avg. price difference	$25,235	$19,100
Avg. % market value paid to sellers	93%	95%

Some recent home sellers, such as this Reddit user, claim to have been offered as much as 15% below market value, even for a home in turnkey condition. However, others have noted offers that are even better than what the market supports.

“In my case,” said one Reddit user, “Opendoor paid me about 20% more than what they eventually resold my house for a few months later.” 

Our analysis revealed that approximately 15% of sellers got MORE for their homes than Opendoor later resold them for in 2024. 

If you’re curious what Opendoor would offer for your house, it doesn’t hurt to test the waters. You can usually have a preliminary offer in hand within 24–48 hours of requesting one on Opendoor’s website — with no obligation to accept it. Just be sure to compare the offer against offers from Opendoor’s competitors, which is the only way to be sure you’re getting the highest price.

How Opendoor makes offers

Opendoor’s offers are based on a variety of data points, including what similar homes are selling for in your area. They also consider how much risk a property presents based on current market conditions. For example, if prices are rising, the company may be more willing to make a higher offer.

Details about your home that you submit during your offer application are also taken into account. Special features and upgrades, such as renovated kitchens and bathrooms, can make a difference. Opendoor recommends sending photos with your offer request to show these upgrades, which can help push your offer higher.

Opendoor will present you with a preliminary offer first. If you accept the preliminary offer, Opendoor will conduct and inspection and deduct its estimated repair and selling costs to come up with a final offer amount.

Your final offer will reflect Opendoor’s offer price minus its service fee (5%), variable repair cost deductions, and standard seller closing costs (usually about 1%). For example, Bradley Carpenter, who sold his house to Opendoor in 2022 for $230,000 was charged a $11,500 service fee, $7,000 in repair costs, and standard closing costs (a little less than 1%) assessed by the title company.

Example Opendoor offer

Because market conditions can change dramatically, so can Opendoor’s offers. For example, one reviewer got an offer that she considered “fair” but had to delay selling. When she went back to Opendoor a month later, she said, “their other offer to my shock was $100,000 less and their excuse [was] market conditions.”

Should you take Opendoor’s offer?

✅ Choose your own closing date

By selling to Opendoor, you get to choose your own closing date, which can be as quick as 14 days or as far out as 60. This flexibility is great if you need to sell fast or you’re concerned about lining up your closing with moving into a new home.

That convenience makes up for Opendoor’s lower offers for some sellers. For example, one Opendoor seller says, “You have to go in knowing you are taking a bit of a haircut off the top. For us it was worth it as we were able to get into our dream home.”

✅ Skip the repairs and showings

Opendoor takes care of any repairs your house needs after you move out, so there’s no need for you to worry about them. Plus, you won’t have to worry about showings or staging your home, which can be highly disruptive during a traditional sale.

You will need to complete an in-person inspection, but our research shows that this is usually quick and may only include an exterior walkaround of your property. Depending on the inspection, your offer may also be reduced to account for any repairs Opendoor will have to complete after your sale.

✅ Available in many major cities

Opendoor is available in over 50 major metro areas, which is about twice as many as its leading competitor, Offerpad. This coverage makes Opendoor the most widely available iBuyer in the country.

This broad availability also ensures that you can usually compare Opendoor’s offer to Offerpad or other cash buyers. By comparing offers, you increase your chances of selling for a fair price and for the best terms.

❌ You’ll likely get less than market value

In August 2022, Opendoor settled a lawsuit with the Federal Trade Commission over allegedly misleading customers about its offers. The truth is that Opendoor is unlikely to offer you as much as you’d get by selling on the open market, especially after accounting for repair estimates.

While the company offered close to market value during the pandemic when home prices were rising rapidly, that is usually no longer the case. Real estate analyst Mike DelPrete has found that Opendoor is purchasing fewer homes than during the pandemic and offering lower amounts for them.

That said, offers from Opendoor tend to be better than traditional “we buy houses” companies, which are usually around 70% of fair market value.

❌ Opendoor rarely negotiates with sellers

Opendoor doesn’t usually negotiate with sellers. Instead, their final offer, which is based on the in-person inspection, is usually a “take it or leave it” offer. While that simplicity helps make the transaction faster and more predictable, it means you’re unlikely to get any adjusted offer.

That said, it is still worthwhile to attempt negotiating with Opendoor, especially if you’ve gotten an offer from a competing iBuyer. For example, Bradley Carpenter, a seller in Kansas City, told us that he was able to get Opendoor to increase their offer by $3,000 after showing them Offerpad’s initially higher offer.

❌ Service fees and repair costs can add up

Opendoor’s service fee is 5%, which is comparable to the realtor commission you’d pay in a traditional home sale. However, repair costs can be a significant expense and may lead to a significantly lower offer.

Repair estimates are difficult to predict. While some sellers have been quoted repair estimates as low as 1%, others have been charged tens of thousands of dollars for Opendoor. We have noticed that repair estimates have gone up over the past year or so, which is unsurprising given that Opendoor is more selective about the houses it buys now.

❌ Only certain houses are eligible

Opendoor is different from traditional cash buyers in that it will only buy homes in fairly good condition and in select markets. Homes will generally have to be newer, have no major foundational or structural issues, and be easy to resell. This means that the home can’t have tenants, flood zone risk, or title problems.

If you’re trying to sell a home in poor condition or you live outside of a major metropolitan area, Opendoor is unlikely to make you an offer. However, you could consider other cash buyers, many of which buy properties as-is, even those facing foreclosure or in need of major repairs.

How much are Opendoor’s fees?

Opendoor’s service fee is 5%, which is on par with other iBuyers. It’s also on par with average real estate commissions — but more than you’d pay with a low-commission brokerage.  

On top of service fees, you’ll also pay standard closing costs and variable repair costs. If you want to stay in your house past the closing date, you’ll need to pay a daily fee to do so, which is based on your home’s value. 

There’s no cancellation fee if you decide to back out before closing.

Here’s how the Opendoor’s fees break down:

• Service fee: 5%
• Closing costs: ~1%
• Repair credits: Vary
• Late checkout: $100+ per day, varies 
• Total: ~6%, plus repair and late checkout fees

How much does Opendoor charge for repairs?

Opendoor’s repair estimates vary widely. Home sellers we’ve talked to have been charged as little as $7,000 in repairs while others have been quoted tens of thousands of dollars.

Issues with a home’s roofing, foundation, and HVAC system can lead to big repair charges. Opendoor will also consider issues with the exterior, such as trees/shrubbery touching the home, damaged eaves, or broken windows. 

Interior issues like faulty kitchen appliances, leaky faucets, and damaged floors and walls can lead to additional repair deductions, as can older water heaters or circuit breakers and inadequate attic insulation, which can drive up utility costs. Finally, Opendoor lists pests and excessive debris as factors that can affect your repair charges.

While this criteria seems reasonable, in practice we’ve found repair estimates can vary a lot. Another problem is that sellers don’t always get an itemized list of repairs, which can make it difficult to judge if the estimates are fair.

Even when sellers are charged for repairs, those repairs aren’t always carried out. For example, one seller was charged $20,000 in repairs, most of which was for foundation issues. However, after selling to Opendoor, she says, “the house was relisted 10 days later with fresh paint and new carpet. […] They didn’t repair the foundation.”

Selling to Opendoor vs. alternatives

Opendoor’s cash offer can be a good option if your top priority is selling your house fast and for the least amount of hassle. 

But if you’re looking to get the most possible money for your house, you should consider other options first. 

Selling to another cash buyer

While Opendoor offers a convenient alternative to the traditional listing process, other cash buyers may be a better fit for your needs, especially if you:

• Have a hard-to-sell home, due to issues like deferred maintenance, problem tenants, or impending foreclosure
• Need cash from your current house to buy a new one

Like Opendoor, ‘we buy houses’ companies provide cash offers and a speedy closing. But unlike Opendoor, they’ll purchase homes in just about any condition.

Because they target distressed homes that they can flip for a profit, they generally only pay about 70% of a property’s after repair value (ARV)[su tooltip]ARV represents a home’s estimated value once repairs and renovations have been completed[/su tooltip] However, these companies don’t charge service fees, closing costs, or repair credits. They’re also more widely available than Opendoor, which currently only operates in about 50 markets nationwide.

Local investors also purchase homes with the intention of flipping them for a profit, but are sometimes willing to offer more tailored solutions. For example, some investors may offer a novation agreement in which — instead of buying your home outright — they complete any necessary repairs before listing it on your behalf  The then keep a percentage of proceeds at closing. This solution can work well if you have a home that needs updating and can’t afford the repairs upfront.

If your home is in good condition, and you’re primarily concerned with cashing out your equity to purchase a new house, companies like Homeward and Knock are worth looking into. Their cash offer and bridge loan programs eliminate many of the stresses of trying to buy and sell simultaneously — all while letting you keep the upside from listing on the open market. 

» FIND: The top cash buyers near you

Listing with a realtor

Listing your house on the MLS with a realtor is the best way to sell for the most money, with U.S. sellers currently earning an average sale price that’s 6.6% greater than than the average listing price.

However, selling with a realtor can take longer than selling to Opendoor. Opendoor can close on a sale in as little as 14 days. And while an experienced realtor may also be able to help you sell your house fast, the current average time to close on a traditional listing is 90 days.

In terms of costs, listing with a realtor is similar to selling to Opendoor. Realtor commissions have historically been 5–6% for sellers, which parallels Opendoor’s 5% service fee. However, a 2024 lawsuit against the National Association of Realtors changed how real estate commissions were decided. Now buyers and sellers negotiate their fees directly with their agents.

Most buyers will still expect sellers to cover the cost of their agent through a seller concession. Sellers that don’t offer a concession increase the amount of cash that a buyer needs to bring to the closing table — which may affect the number of offers you get for your house. 

However, you can opt to list with a discount realtor, which could bring your listing agent commission down by as much as 50%. That allows you to save on fees while still selling your home for market value.

Closing costs and moving expenses are usually similar regardless of whether you use Opendoor or a realtor. However, repairs may be more when selling to Opendoor, given that they’re less likely to negotiate than a buyer who’s intent on purchasing the home or facing steep competition from other buyers.

Bottom line: Is Opendoor worth it?

Opendoor may be worth it if your top priority is selling quickly and not having to deal with the hassles of a traditional sale. With Opendoor you can close in as little as two weeks and you don’t have to worry about staging, repairs, or showings.

That convenience, however, comes at a cost. You won’t sell for as much as you would by listing on the open market with a realtor. If time is less of an issue for you and you want to sell for top dollar, you should consider using a real estate agent first.

If you decide to sell with a company like Opendoor, make sure you compare them with other cash buyers in your area.

Opendoor offers FAQs

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.