Does Opendoor Charge Hidden Fees? What You Need to Know

Published November 28, 2022

Written by Greg Isaacson
Edited by Galina Velgach

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.

Note: Opendoor has settled with the Federal Trade Commission for allegedly misleading customers about its true home sale costs, including repair costs. The company agreed to pay a large fine.

Looking to sell your home at the highest price and with the lowest fees possible? Try Clever Offers: get a free home valuation by partner agents from our friends at Clever Real Estate, and compare that with offers from companies like Opendoor. Get fair cash offers from local buyers now!

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%.

🤔 What about seller concessions? Technically, Opendoor doesn’t ask for seller concessions. But since the company deducts repair costs from its preliminary offer, sellers do ultimately pay out.

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