Opendoor is the country’s largest iBuyer. Although new competitors have entered the market, it still completes nearly twice as many purchases as all other companies in the space combined.
However, just because Opendoor is the leading iBuyer, that doesn’t mean it will always be your best choice.
There are a number of companies like Opendoor — including Offerpad, Zillow Offers, Redfin Now, Orchard, and Knock — which can offer similar services.
This guide will explain how Opendoor compares to each of these competitors so you can decide which company may be the best fit for your situation.
Top 5 Opendoor competitors
Here are the top 5 Opendoor competitors.
NOTE: It’s worth comparing offers from multiple iBuyer companies. Going with the company that offers you the best all-around deal — in terms of offer price, fees, and repairs — will usually be the best choice.
Offerpad is worth considering for a quick and easy sale. However, their higher service fee and worse customer reviews make them a less attractive choice than Opendoor in most circumstances.
Here’s what you need to know about the similarities and differences between the two companies.
Key similarities with Opendoor
- You can pick your closing date: You’ll have the freedom to move when you want to.
- No showings are required: Both companies will schedule an inspection, and take care of repairs for you (with the cost of repairs deducted from the selling price).
- Available in top iBuyer markets: Both buy homes in Phoenix, Atlanta, and Dallas.
How it’s different from Opendoor
- Worse customer reviews: Opendoor received an average customer rating of around 4 out of 5, while Offerpad received an average rating of around 2.
- Higher service fees: Opendoor charges a service fee between 3.5% and 5% while Offerpad charges between 6% and 10%.
- Cancellation fees of up to 1% could apply: Opendoor does not charge a cancellation fee, while Offerpad charges a fee of 1% if you cancel outside of the four day period after an inspection has been completed.
Zillow Offers has the potential to be much more expensive than Opendoor: the combined cost of their service and selling fee could be as high as 15%! That’s three-times higher than Opendoors maximum service fee of 5%.
Here’s what you need to know about how Zillow Offers stacks up compared with Opendoor.
- Flexible closing date: You can choose when you want to close on your property so you can move on your schedule.
- Repairs aren’t your problem: Both Opendoor and Zillow deduct the cost of repairs from the offer they provide. You won’t have to worry about paying out of pocket to get your home fixed before selling.
- No cancellation fee: Neither Zillow Offers nor Opendoor charge a cancellation fee.
How it’s different from Opendoor
- Zillow Offers has no customer reviews: While Opendoor received an average rating of 4.05, Zillow Offers has not received any dedicated reviews as of the time of this writing.
- Higher service fees: Opendoor charges a service fee between 3.5% and 5% while Zillow charges a 6% selling fee as well as a service charge between 1.5% and 9%.
- Wider availability: If you’re selling in San Diego; Fort Collins, CO; Miami; or Cincinnati, Zillow Offers will be your only option.
You have a better chance of getting a legitimate offer for your home with Opendoor than with Redfin Now, judging by the number of houses each company purchases. In 2019 Opendoor bought and sold 32-times more homes than Redfin Now according to a 2020 report.
Redfin Now’s biggest selling point is that they cover a number of West Coast markets that Opendoor doesn’t, such as Seattle; San Francisco; San Diego; Orange County, CA; and Palm Springs, CA.
Here are some of the key similarities between the two Redfin Now and Opendoor:
- No showings are required: You’ll have just a simple visit from Redfin Now to determine what, if any, repairs need to be made.
- No cancellation fee: If you don’t sign the repair addendum with Redfin, you can cancel at any time and are under no obligation to sell your home to the broker.
- A reliable cash offer: You don’t have to worry about financing falling through or other problems preventing your sale from getting to closing.
How Redfin Now is different from Opendoor:
- Redfin Now buys higher priced properties in some markets: While Opendoor typically purchases homes valued between $100,000 and $500,000, Redfin Now buys homes priced up to $1.5 million in some markets.
- Redfin Now is available in a more limited number of markets. Redfin now is available in just 14 markets, compared with Opendoor’s 23.
- Redfin Now has a more limited time to close: You must close within 10 to 30 days of accepting your offer. Opendoor provides more flexibility, indicating that while they aim to close within 30 to 45 days they leave the timeline up to you. You also have the option to choose Late Checkout and rent your home back from Opendoor, which Redfin now doesn’t allow.
Orchard is very different than Opendoor as it is not an iBuyer and it does not guarantee your home’s sale. Instead, the goal of Orchard is to help you buy a new home before your old one sells.
Orchard estimates your home’s value, determines how much equity you can tap into, and then advances you the funds needed to sell your current home. Orchard’s Home Advisors then take care of listing the property for you.
While both Orchard and Opendoor can provide more flexibility, they serve different purposes. Here are the key similarities:
- You can avoid home showings: Orchard enables you to purchase and move to your new home before your old one is sold. This means you don’t have to live in your home during showings. Opendoor also allows you to avoid showings, but does so by purchasing your house directly.
- You have more flexibility regarding when you move: Since Opendoor buys your house and lets you select your closing date, you can choose when you move to a new home. Orchard also makes it possible for you to pick your moving date, but it does this by enabling you to buy before you sell.
- You don’t have to handle repairs: If you work with Orchard, you can opt for their Concierge Service. This would mean they recommend repairs for you and manage the process.
And here are the key differences:
- Opendoor guarantees your home will sell, Orchard doesn’t. With Orchard, you list you home on the openmarket, so there’s no guarantee that it will sell.
- Opendoor tells you your price up front, Orchard doesn’t. Orchard estimates what your home will sell for, but there’s no guarantee you’ll actually get that price. Opendoor, on the other hand, tells you exactly what it will pay for your home before you move forward.
- Opendoor’s fees may be lower. Orchard charges 6% of your home’s value, while Orchard charges 3.5% to 5%.
Knock operates differently than Opendoo: it’s goal is to help you buy a new property before you’ve sold your old one.
Knock’s Home Swap program helps you secure a home loan with a down payment advance so you can make a competitive non-contingent offer. It then works with you to list your home and advances you up to $25,000 for necessary repairs.
If your home sells on the open market, you’ll pay Knock back for the mortgage payments they made on your behalf, and the money you borrowed for repairs and keep what’s left. If your home doesn’t sell, you can take a backup offer Knock made at the start.
Knock charges a 1.25% convenience fee for this service.
Here’s how this is similar to Opendoor
- You can be confident your home will sell: Opendoor will purchase your home directly after you receive an offer. Knock helps you try to sell on the open market, but you have the option to take a back-up offer. In either case, you’ll know for sure your home will sell.
- You have flexibility regarding when you purchase a new home: You don’t have to wait and hope to find a buyer before purchasing your new home. Knock makes it possible to move forward by securing you a loan to buy a new home before selling.
- You’ll get help with repairs. Knock advances you the money for repairs while Opendoor deducts the cost of them from your offer. But, in both cases, you don’t have to come up with the money out of pocket.
How it’s different from Opendoor
- Knock’s fee structure works differently. With Knock, you pay a 1.25% convenience fee, as well as real estate commission. With Opendoor, you pay a service fee between 3.5% and 5% but do not pay real estate commission at all.
- Knock has fewer reviews and more dissatisfied customers: Knock received just a review of just 3.2 out of 5 while Opendoor received an average customer rating of 4.05. Knock also has fewer reviews, and customers complain that the process is long and drawn out.
Apps like Opendoor
One of the ways that Opendoor offers a more convenient home selling process is by providing a mobile-optimized home buying and selling experience with their app.
However Opendoor isn’t the only real estate tech company that offers a mobile experience. Zillow, Redfin, and Realtor.com have apps that are similar to Opendoor’s.
Below, we’ve highlighted some of the most popular real estate apps that’re similar to Opendoor.
Zillow’s app provides similar functionality to Opendoor’s app. You can:
- Search homes across the U.S.
- Refine your search by area or with other customized search criteria
- Receive notifications when new homes become available that meet your criteria
- Share homes of interest with friends and families
- Schedule showings or view a video tour
- Connect with an agent to ask questions about buying or selling
Zillow’s app is more focused on searching for properties and connecting with an agent, while Opendoor’s app also emphasizes its iBuyer feature. Zillow’s app also receives higher ratings, earning a 4.8 out of 5 at the App Store and a 4.5 at Google Play. However, some reviewers complained of problems with notifications.
Redfin’s app also works in a similar way to Zillow and Opendoor’s. You can:
- Search homes listed across the U.S., which are updated every five minutes
- Refine your search by area or using other filters
- Sign up for alerts when new homes of interest become available
- View a virtual tour or tour a property via video chat
- Connect with a Redfin agent to get questions answered or schedule a showing
Again, the app is more heavily focused on connecting you with an agent or helping you find a property to purchase, rather than on the iBuyer feature. This distinguishes it from Opendoor’s app, which highlights its iBuyer service predominantly. Redfin’s app received a 4.8 out of 5 on the App store, and a 4.7 on Google’s Play store. Reviewers complain about a recent update that routes them to a “feed page,” though.
Real Estate App by Realtor
Real Estate App offers the same features as the other apps on the list, allowing you to:
- Search homes in the U.S.
- Customize your search parameters
- Take virtual home tours
- Receive custom notifications about properties of interest
- Connect with real estate agents
Realtor’s app also includes a mortgage calculator and some unique search tools such as a noise layer map. It received a 4.7 on Apple’s App Store 4.6 on Google Play. Some reviewers, however, describe it as “glitchy.”
If you’re interested in learning more about iBuyers, or what your other options are if you want to sell fast, check out the articles below.
What is an iBuyer?: iBuyers offer cash payment on a lightning-fast timeline. The tradeoff is that you may find that their offers are less than what you’d get on the open market.
How to Sell Your House Fast: On average, it takes a little shorter than a month for a home to go under contract once it’s listed for sale. However, thats’s not the end of the process. It could could take another month for the sale to close. Read on for tips to streamline this process and sell fast.
We Buy Houses For Cash Companies: In this guide to “We Buy Houses for Cash” companies, we’ll detail the differences between types of cash buyers, the process cash buyers actually use to purchase your home, and the pros and cons of going the cash buyer route.