Looking to sell your home to an iBuyer like Opendoor? Expect your final offer to be lower than your preliminary offer, possibly by tens of thousands of dollars. That's because Opendoor deducts a service fee and repair costs from your initial offer.
It's hard to say how much lower your final offer from Opendoor will be. The service fee is 5%, but the repair deductions are less predictable and could be your highest closing cost. Opendoor also pays less than market value for homes, so it's worth considering other options.
If you’re on the fence about selling to Opendoor, a service like Clever Offers can help you get competing bids from leading cash buyers — including top iBuyers and 'buy before you sell' services.
You can compare offers without obligation and sell in as little as seven days — with no added fees or commissions. You can also request a free home value estimate to help you compare offers against your home’s potential list price. Simply fill in a few details about your home to get started.
Opendoor’s preliminary offer vs. final offer explained
Opendoor’s preliminary offer
Opendoor's initial estimate relies on basic information about your property that you provide through the company's online platform, including:
- Interior and exterior size
- Features, such as parking, a pool, and countertops
- Any conditional issues, such as fire damage
- Location
The company autofills a lot of this information based on public records of your property. You just need to confirm that the information is correct and add anything that’s missing.
You typically get Opendoor's preliminary offer within 24 hours of submitting your application.
Opendoor’s final offer
Opendoor makes a final offer after its home inspection, which involves an examination of the home's interior and exterior features. The final offer considers the property’s condition, and accounts for repairs and closing costs.
Opendoor's final offer includes:
- The offer amount before deductions
- A 5% service fee
- Repair deductions
- Closing costs (usually ~1%)
- How much you’ll net on the sale after deductions
How much does Opendoor charge for repairs?
Opendoor bases its repair estimates on a detailed inspection of your home by one of its representatives.
Repair costs are hard to predict and can vary a lot.
For example, one seller said that Opendoor "took 1% for repairs, which is practically nothing."
Another online reviewer was quoted over 5.6% for repair costs after receiving an initial offer of $528,000. They said, "After looking at my home, which I redid the kitchen, floors, new A/C and other updates [Opendoor] came back with a lower offer and claimed it needed over 30,000.00 of repair work."
Unfortunately, Opendoor doesn’t always provide an itemized list of repairs, so it’s impossible to know whether your quote is fair.
How do market conditions influence Opendoor's final offer?
Market factors, such as average time on market and comparable home sale prices, also influence Opendoor's offers.
During the pandemic, Opendoor built a reputation for paying at or above market value for homes, relying on its 5% service fee and rapid home price appreciation to turn a profit. In 2021, for example, real estate analyst Mike DelPrete found that Opendoor paid a median 107.2% of a home's estimated value at the time of purchase, and generally was still able to sell them for more.[1]
However, as interest rates rose and the housing market cooled, Opendoor's business model was no longer sustainable. As a result, the company is purchasing fewer homes and paying less for them.
| Year | Number of homes bought by Opendoor |
|---|---|
| 2024 | 14,684 |
| 2023 | 11,246 |
| 2022 | 34,962 |
| 2021 | 36,908 |
“Before 2022, they were competitive," explains realtor Christopher Trumbach. "[Opendoor's] offers were coming in close to market value…but when the market changed, they started cutting down on the numbers.”
Our team's analysis of more than 200 homes bought and sold by Opendoor since December 2022 found that Opendoor's final offers now average about 7% less than the home's eventual resale price, costing sellers in the $550,000 range approximately $25,000 in lost equity. The lost profit potential is on top of service fees, repair credits, and closing costs assessed by Opendoor.
Average Opendoor purchase price vs. resale price 2023/2024
| 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 by Opendoor | 93% | 95% |
While this data reflects broad trends in Opendoor's purchase activity over time, individual sellers also point to sudden price drops due to "changes in the market."
What Opendoor customers have to say about Opendoor's offers
💡 An AI-assisted analysis of 4,361 3rd-party Opendoor reviews found that:
- 14% of reviews mentioned excessive fees and repair costs cutting into their proceeds
- 19% of reviews mentioned disappointing offers, either as a a result of a poor initial offer or an offer that was lowered following the inspection.
"Like many others on the site, I was given an initial quote that was around market value. Went through all the steps and when the final offer came in it was over $100,000 less than the initial amount. In my opinion, the company is participating in deceptive business practices. After doing some more research, apparently the company has already been sanctioned by the FTC for its practices."
"Final offer came in 30% lower then the preliminary offer. I told the guy to not waste my time if the final number was going to come in lower than the lowest number in the range they give you. He said that was very rare and most likely wouldnt happen. In the end, came in 30% below and was a total bait and switch."
Not only was the final offer $10,000 lower than the initial, they added $50,000 in repairs and cited 'market conditions' as to why it was lower. I have been in real estate for 19 years, and I know what my property is worth. There are some repairs needed, but I could remodel my house to pristine condition for $50,000!!
I have been working with OpenDoor to potentially sell my home to them. The initial "potential" offer was good, then they came back with an offer that was $40,000 lower, subtract the 5% surcharge,and the bogus $18,000 in repairs, and they wouild make over $120,000 on selling my home. My home is only 11 years old! We are the original owners. They told us we need a new roof, no one even got up on the roof and the roof still has about 20 years left on it. Most of the supposed "repairs" are bogus.
While selling to Opendoor can still be convenient, the difference between its preliminary and final offers means you’ll usually make significantly more money listing with an agent — especially if you choose a brokerage offering lower-than-average commission rates.
Top Opendoor alternatives to consider
You aren’t obligated to accept Opendoor’s revised offer. If you think the repair costs are too high, you can walk away without any penalties.
Other iBuyers, such as Offerpad, offer a greater variety of home selling solutions, including the ability to list your home and use their cash offer as backup.
Buy-before-you-sell services like Knock and Homeward let you leverage your current home equity to buy a new house before you list your old one. You can avoid many of the hassles of buying and selling simultaneously while keeping any additional upside from putting your home on the market.
Cash offer networks like Clever Offers can help you explore competing offers from a variety of sources, including iBuyers and local investors within their network.
The following Opendoor competitors are highly rated and may provide more competitive offers or compelling perks.
What to do before accepting Opendoor's offer
Preliminary offers from Opendoor are valid for 7 days, or 14 days if you schedule a virtual walk-through. Final offers usually expire after five days.
If you're considering an offer, we highly recommend using that time to weigh your options.
You can submit your information to competing iBuyers if any are available in your area or see what other cash buyers might offer for your home. That way, you can see how their offers compare to Opendoor's.
You can also ask a local real estate agent for a comparative market analysis (CMA). A CMA report gives you an idea of how much your home might get on the open market, so you can decide if the convenience of Opendoor's cash offer is worth the potential loss in profit.
Opendoor preliminary offer vs. final offer: FAQ
How much higher is Opendoor's preliminary offer than its final offer?
Opendoor's preliminary offer is usually higher than its final offer, but the actual amount depends on the house and its location. Its preliminary offer is an estimate based on home size, age, and features, while its final offer is based on more detailed information about the homes condition and includes repair deductions and seller closing costs.
Is Opendoor's final offer actually final, or can it change?
Opendoors final offer may be negotiated, but it is not likely to change without an error in valuation. The final offer may also change if the company previously failed to consider a major selling point that impacts the homes value.
Related reading
Opendoor Reviews: What You NEED to Know: Opendoor pays less for homes compared to what you'd make by selling with a realtor, but it provides more convenience. Learn if Opendoor is the right choice for you.
The Best Companies That Buy Houses for Cash: Need to sell your home fast? Consider a cash home buyer. Here's our in-depth guide to the best cash buyers available on the market.
Offerpad Reviews: How It Compares to Other iBuyers: Offerpad is the second-largest iBuyer in the US and is the main alternative to Opendoor. Learn where the company operates and how it compares to other iBuyers.
What Is an iBuyer? Companies like Opendoor typically provide sellers with more speed and convenience compared to selling on the open market. Learn how the process works and the pros and cons of iBuyers.