Opendoor fees | Hidden costs | Opendoor vs. realtor fees | Opendoor vs. Competitor fees | Is Opendoor worth it? | FAQ
Opendoor charges a service fee of 5% in exchange for the convenience of a fast, guaranteed cash sale with no need to prep or show your home. Its service fee is on par with competitors' and is roughly in line with standard realtor commissions. However, you'll likely net a lot less than you would with a traditional home sale.
In addition to service fees, Opendoor automatically deducts its repair estimate from your final offer, which can significantly reduce the amount of money you take home after you close. Past sellers have noted that Opendoor may also lower your final offer based on shifting market conditions.
While Opendoor can still be a good choice for some sellers, other cash offer companies may offer you a better sale price. That's why we recommend Clever Offers.
Clever helps you find the best offers from trusted cash buyers — including iBuyers like Opendoor. With Clever, you can sell in as little as 7 days — with no added fees or obligation. Simply fill in a few details about your home to get started.
What fees does Opendoor charge?
| Opendoor fees | Cost |
|---|---|
| Service fee | 5% |
| Closing costs | 1-3% |
| Late checkout (optional) | $100–400/day + $2,000 security deposit |
| Repair costs | 1-2% minimum |
| Total cost | 7-10% (plus late checkout fees, if needed) |
Service fee
Opendoor’s service fee is 5% for cash offers, which is the same as what its main rival, Offerpad, charges. The 5% fee is also comparable to the total realtor commission you’d pay if you sold the traditional way with an agent.
Repair costs
Opendoor's repair costs can be a significant expense and, unfortunately, they vary a lot. While it’s difficult to predict exactly how much Opendoor will charge you for repairs, sellers we've talked to have been charged roughly 1–3%. Recently, we’ve found an increase in the number of complaints concerning unreasonable repair costs, so you may be charged closer to the upper end of that range.
Repair costs are taken out of closing and the repairs won’t be completed until after you move out. And some sellers complain that Opendoor doesn't actually make the repairs it charges you for. The estimate is based on photos and videos you provide of your home, a virtual walkthrough, and an exterior inspection.
Closing costs
Closing costs are around 1%, which is the same as what you’d pay in a traditional sale. Closing costs include items like attorney fees, title insurance, transfer taxes, and prorated property taxes.
Late checkout
Late checkout is an optional expense incurred if you need to stay in your house for up to 14 days after closing. The amount is based on your home’s value, so it will vary, but our research shows that it’s generally $100–400 per day.
Late checkout also requires a $2,000 security deposit, which is returned to you after you move out.
Total fees
Opendoor’s total fees add up to around 7–10%, plus late checkout fees of $100–400 per day if needed. While most sales to Opendoor will fall within that range, you may end up paying more. This is more likely to happen if your repair estimates are especially high.
Are there hidden costs when selling to Opendoor?
Opendoor doesn’t charge hidden fees, but its final offers can be dramatically lower than its preliminary offers.
As one reviewer who got a quote from Opendoor in July 2023 explains, “Initial offer $750k. Did video walkthrough and physical walkthrough. Final offer $640k, and $30k in repairs on top of that.”
These lower offers can be upsetting for sellers who expect the final offer to be close to the preliminary one. In fact, some sellers may have even taken steps to move based on their preliminary offer, such as arranging a move-in date for their new home.
As one Reddit user claims, “iBuyers will make you a nice offer, so you put plans in motion. Then they'll come back and ask for significant discounts.” By the time you get to the inspection and your final offer, it may feel harder to walk away.
However, you are free to reject Opendoor’s offer at any time for no cost. If Opendoor doesn’t meet your expectations, get offers from competing iBuyers. Or you can choose to list with a realtor instead, which will likely get you the most money for your sale.
Compare fair cash offers from iBuyers and investors to the sale price you'd get with an agent.
Opendoor fees vs. typical home selling costs
Opendoor’s fees are similar to the realtor fees you’d pay in a typical home sale. While you won’t have to pay home preparation costs like photography and staging, you'll likely end up paying more for repairs with Opendoor, since you won't have the opportunity to negotiate like you would with a traditional buyer.
Missing hardware on cabinets, chipped countertops, and bold accent walls that might need to be repainted are all examples of items Opendoor would charge a repair credit for[1] — whereas buyers in a competitive market might let these items slide.
The major difference is that while listing with a realtor will likely net you fair market value, Opendoor’s offer will be less.
Our own analysis of more than 200 homes bought and sold by Opendoor since 2022 found that Opendoor buys homes for an average of 6% less than it resells them for.
Research by real estate analyst Mike DelPrete also shows that Opendoor has significantly scaled back the competitiveness of its offers in recent years. One example is a home estimated to be worth $587,242 on Zillow that received a preliminary offer of just $538,300 from Opendoor.
Here’s how the fees and net profit for that property break down with Opendoor vs. selling the traditional way:
| Costs of selling to Opendoor | Costs of selling with a realtor |
|---|---|
| Offer price: $538,300 | Offer price: $587,242 |
| Service fee: 5% | Realtor commission: 5–6% |
| Repair costs: 1–2% | Home prep costs: 1–2% |
| Closing costs: 1–3% | Closing costs: 1–3% |
| Net profit: $484,470–500,619 | Net profit: $522,645–546,135 |
Source: Mike DelPrete. Opendoor Recalibrates to a New Environment. May 18, 2023.
Opendoor fees vs. competitors'
Opendoor’s fees are similar to what competitors, such as Offerpad, charge. Both Offerpad and Opendoor have a service fee of 5%. However, while Opendoor charges a daily fee if you want to stay in your home after closing, Offerpad does not. On the other hand, Offerpad charges a 1% cancellation fee, while Opendoor lets you cancel for free.
Investors and other companies that buy houses for cash typically don’t charge service fees. However, they often pay significantly under market value, so they’re not necessarily a better deal than Opendoor. They're typically only a good option if you’re trying to sell a distressed property or you need to sell your house fast and you’re outside of Opendoor’s service area.
Local cash buyers can also be worthwhile for more tailored solutions as they’re usually more open to negotiating than Opendoor is. For example, some local investors may be able to offer creative financing solutions or a novation agreement.
Under a novation agreement, the buyer fixes up your property first in order to list it on the open market. The seller and buyer then split the proceeds once the house has been listed and sold. This way, you can avoid investing in costly, time-consuming repairs while still taking advantage of the higher selling price the open market usually fetches.
Regardless of whether you choose Opendoor or one of its competitors, you should compare all the options in your area first. That way you maximize your chances of selling on your timeline and for a fair price.
Bottom line: Is selling to Opendoor worth it?
Opendoor is worth it if you’re willing to sacrifice a higher selling price in order to sell quickly and with fewer hassles than a traditional home sale.
As one homeowner who was considering using Opendoor put it, “I’m looking to close 3 weeks from now and am okay losing a little bit of equity in the process.” If you’re likewise pressed for time or don’t want to deal with showings, Opendoor may be a good option.
But that convenience means you likely won’t get as much as you would listing with a realtor on the open market.
Before making a decision, compare your options, including selling with a low-commission realtor. The best companies offer the same service as you'd expect from a top brokerage but at a much more competitive rate. You can even negotiate a shorter listing period with a realtor to see how quickly your house could sell, and then use Opendoor's offer as a backup.
Even if you decide that a cash buyer is right for you, Opendoor isn’t always the best option. You should see what other cash offer companies and investors are available in your area to make sure you get the best deal possible.
A simple way to compare offers is with a free service like Clever Offers. Clever gathers competing offers on your behalf from reputable iBuyers and investors. You also get a professional estimate of your home value — so you can weigh offers against your potential listing price. Clever won't sell your information or charge you hidden fees. You can start here to compare offers without obligation.
FAQ
Does Opendoor charge hidden fees?
Opendoor doesnt charge hidden fees. However, its final offer may be substantially lower than its preliminary offer. Repair costs can also be very difficult to predict and can end up taking a large chunk out of your final sale proceeds.
Does Opendoor pay closing costs?
No, when you sell to Opendoor, youll still need to pay standard closing costs, such as title insurance, transfer taxes, and prorated property taxes. Closing costs are usually around 1%, but may be as high as 3%.
Is Opendoor's price negotiable?
Opendoors price is usually non-negotiable. However, if you believe theyve missed something important in their assessment of your property value or youve found another iBuyer willing to offer more, Opendoor may be open to adjusting their offer.
Why would you sell to Opendoor?
Opendoor offers a flexible closing window of 1460 days and allows you to skip the hassles of a traditional sale, like home prep and showings. The fees are also comparable to what youd pay by listing with a realtor, although youll sell for less overall with Opendoor. Many people feel the convenience of selling to Opendoor is worth the lower sale price.
Related reading
Our Full Opendoor Review. Looking for a hassle-free way to sell your home? Opendoor makes near-instant cash offers and can close fast.
What Is An iBuyer? How iBuying Works, & More! iBuyers are companies that use technology and data to give home sellers fast cash offers. Learn how iBuying works and which companies are the best.
Who Pays for a Home Inspection? (And Why?) Home buyers usually pay for a home inspection. The cost can vary by location, but you might also need specialized inspections.