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 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 options is by using a free service like Clever Offers. Clever gathers competing offers on your behalf from reputable iBuyers and investors. You also get a professional estimate of your home’s value — ensuring you get a fair price for your home.
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 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
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 1–3%)
- 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.”
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 cash buyers, 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 other iBuyers, like Offerpad, if any are available in your area. 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.
A simple way to compare options is by using a free service like Clever Offers.
Clever gathers competing offers on your behalf from reputable iBuyers and investors. You’ll also get a professional estimate of your home’s current value — ensuring you get a fair price for your home.
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 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.
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