Opendoor Preliminary Offer vs. Final Offer

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By Katy Byrom Updated October 10, 2024

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What's the difference? | Repair costs | Alternatives | Before you accept an offer | FAQ

Looking to sell your home to an iBuyer like Opendoor? Expect your final offer to be lower than your preliminary offer, possibly by 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 fair 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.

What's the difference between Opendoor’s preliminary offer vs. final offer?

Opendoor had a reputation for making strong offers on homes, with final offers staying fairly close to preliminary ones. However, Opendoor has struggled the past couple of years as the real estate market has cooled.

Now Opendoor is making fewer and lower offers on homes.

Our team's analysis of more than 200 homes bought and sold by Opendoor between December 2022 and September 2024 found that Opendoor's final offers were an average of 5–7% less than the home's eventual resale price. This 5–7% loss in profit potential is on top of the service fees, repair credits, and closing costs assessed by Opendoor.

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.

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 performing a virtual walk-through of the house and a quick in-person assessment. The final offer considers the property’s condition and accounts for repair deductions and closing costs

The 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

Some reviews for Opendoor claim that the company lowered sellers' final offers by an additional amount because of "changes in the market."

How much does Opendoor charge for repairs?

Opendoor bases repair estimates on a video walk-through and an exterior assessment 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.

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, local investors, and top-rated cash buyers within their network.

The following Opendoor competitors are highly rated and may provide more competitive offers or compelling perks.

Company
Our Rating
Type
Best for
Service Fee
Compare offers from top cash buyers
5.0
3,681 reviews
Cash offer network
Multiple offers from the top cash buyers
None
Use your home equity to buy before you sell
4.8
879 reviews
Home trade-in
Minimizing the stress of buying and selling
2.25% + $1,850 loan fee
Learn More
On realestatewitch.com
Sell for cash, list for additional upside
4.5
1,203 reviews
Cash buyer + home trade-in
Get cash upfront, list for more
1–6.5%
Learn More
On realestatewitch.com
Flexible selling options with perks
3.9
2,814 reviews
iBuyer
Flexible selling options with plenty of perks
5%
Learn More
On realestatewitch.com

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.

Authors & Editorial History

Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

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