Opendoor fees | The truth about Opendoor hidden fees | FAQs
Opendoor doesn’t charge hidden fees to home sellers. But selling your home to the iBuyer does involve some significant costs.
Like other iBuyers, Opendoor pays close to fair market value for homes and offers a quick, low-stress home sale process, but its fees and costs can be expensive for sellers. Consider your other options before selling to Opendoor, including selling with a real estate agent or another iBuyer.
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Opendoor fees: A complete breakdown
| Opendoor fee | Cost |
|---|---|
| Service fee | 5% |
| Closing costs | 1-3% |
| Repair costs | 1-2% |
| Total cost | 7-10% |
Selling to Opendoor carries an estimated cost of 7–10% of the home’s sale price. For example, selling a $400,000 home would rack up between $28,000 and $40,000 in fees — netting you about $360,000–372,000.
Opendoor makes a preliminary offer on your house and then performs a virtual walk-through to assess the home’s condition and whether it needs any repairs. The company then makes a final offer, with the service fee, repair costs, and closing costs subtracted from the price.
Total cost
Opendoor fees add up to about 7–10% of the final sale price. This includes a service fee (5%), repair costs (about 1–2%), and half the total closing costs (about 1–3% for you). These costs get deducted from Opendoor’s final offer.
As with any real estate transaction, closing costs vary based on location and include escrow fees, HOA fees, and title insurance. If your house doesn’t need any repairs, the total cost to sell could be lower than 7%.
The truth about Opendoor hidden fees
Opendoor’s pricing is transparent, but the fees are significant. In particular, sellers have complained that Opendoor’s repair costs are too high, and can equal 1–2% of the home’s final sale price.
A leaking roof, a non-functioning HVAC unit, or a cracked countertop are all examples of items Opendoor would want to repair (see more examples here). But Opendoor won’t charge you for upgrades or renovations.
How does Opendoor estimate repair costs?
Repair costs are based on Opendoor’s free virtual home condition assessment and an exterior inspection. They can vary widely by property.
First, you’ll “walk” an Opendoor representative through your home’s interior on a video call. Then, a local estimator will come to check out the exterior of your house. Finally, Opendoor will provide a detailed estimate of any repairs it thinks are necessary.
Consult with a local realtor, pay for a home inspection, or get contractor bids so you’ll have a baseline to judge whether Opendoor’s estimate is fair and accurate.
FAQs
Does Opendoor charge hidden fees?
No, Opendoor doesn't charge hidden fees, though some sellers complain that it overestimates repair costs. Opendoor typically deducts 1–2% in repair costs from its initial offer on your home, alongside a 5% service fee and half of the closing costs. It's worth getting an independent home inspection done so you have an idea of how much repairs would cost you.
What is the true cost to sell a house with Opendoor?
The true cost to sell a house with Opendoor is generally about 7–10% of the home's sale price, which gets deducted from the final offer you'll get. A home that needs minimal repairs will fall on the lower end of the cost scale, especially in an area with low closing costs.
Related reading
Opendoor Reviews: Ratings, How it Works, and FAQs. Looking for a hassle-free way to sell your home? Opendoor makes near-instant cash offers and can close fast. Learn more.
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.
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