Looking to sell your home to the iBuyer company Opendoor? Expect your final offer to be lower than your preliminary offer, possibly by thousands of dollars. That’s because Opendoor’s repair costs and selling fees get deducted from your initial offer.
It’s hard to say how much lower your final offer from Opendoor will be. Beyond its 5% service fee, you may also get charged an extra 1% to 2% in repair deductions, depending on your home’s condition.
Opendoor may also pay less than fair market value for your home, so it’s worth considering your other selling options.
With Clever Offers, a local realtor will help you review each offer, and provide you with a free home valuation so you’ll know if the offers are fair or not. Get fair cash offers from local iBuyers now!
Opendoor’s preliminary offer vs. final offer: The difference explained
It helps to understand each type of Opendoor offer before starting the sale process.
Opendoor’s preliminary offer
Its initial estimates rely on the basic information you provide through the company’s online platform, including:
- Your home’s interior and exterior size.
- Its current condition.
- Your location.
Opendoor’s preliminary offer typically gets delivered within 24 hours of applying.
Opendoor’s final offer
Opendoor makes a final offer after performing a virtual walk-through of the house. The final offer considers the property’s condition and accounts for repair deductions and closing costs.
Repair deductions vary but generally add up to around 1% to 2% of the offer amount, while seller closing costs range from 1% to 3%.
Opendoor also charges homeowners a minimum service fee of 5% of the sale price.
Are you unhappy with Opendoor’s preliminary or final offer? It’s smart to compare your offer to what other iBuyers or cash home buyers are offering before proceeding with the home sale.
Opendoor’s repair cost deductions
Homeowners can opt for an as-is sale through Opendoor, but the company will deduct repair costs from your offer.
Repair estimates are based on an interior and exterior inspection of your home by an Opendoor representative.
You can schedule the closing or cancel their contracts after reviewing repair costs and the final offer price.
Under Opendoor’s terms of service, the company can withdraw its offer on your home if it thinks repair costs are too high.
Opendoor has settled with the Federal Trade Commission for allegedly misleading consumers about its home sale costs. Opendoor is more expensive to use than consumers were led to believe, according to the FTC. Despite Opendoor’s past claims, you’ll likely earn more by selling your home on the open market with a realtor vs. using Opendoor.
Opendoor preliminary offer vs. final offer: FAQs
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 home’s condition and includes repair deductions and seller closing costs.
Is Opendoor's final offer actually final, or can it change?
Opendoor’s 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 home’s 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.
Companies That Buy Houses for Cash Revealed. 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. Offerpad is the second-largest iBuyer in the U.S. 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.
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