Opendoor Preliminary Offer vs. Final Offer

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  Written by Katy Byrom

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  Edited by Galina Velgach

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 selling options.

A simple way to compare offers is with a free service like Clever Offers. Clever sends you competing offers from reputable iBuyers and investors in your area. You can also request a professional estimate of your home value — so you can weigh offers against your potential listing price, with no added fees or obligation to move forward.

Compare fair cash offers to the sale price you’d get with an agent — no hassles, fees, or commitment.

Opendoor’s preliminary offer vs. final offer: The difference explained

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, like its main iBuying competitor, Offerpad, is making fewer and lower offers on homes.

You should expect your final offer from Opendoor to be significantly under fair market value. Opendoor typically lowers its final offer because it claims inspections uncover high potential repair costs.

While selling to Opendoor can still be convenient, the difference between its preliminary and final offers means you’ll usually make more money listing with an agent.

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 customers reported that Opendoor lowered their 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.

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, may be able to make you a better offer.

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

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.