What is Opendoor?
Opendoor is the nation’s largest iBuyer. iBuyers are companies that use technology to make quick offers and buy homes for cash.
You can get an offer from Opendoor within 48 hours of submitting some basic information about your house online. The company may adjust the offer after a home inspection and after making any necessary repairs.
Opendoor is available in over 50 metro areas — far more than any other iBuyer. And its service fee of 5% is slightly lower than other iBuyers, although some Opendoor reviews complain about high repair costs that can eat into your sale proceeds.
Some extra costs can make Opendoor less of a deal than it first appears. For example, Opendoor gives you the option of staying in your house for up to 17 days after closing. But unlike other iBuyers, it charges a daily fee for that privilege.
Should you use Opendoor?
- Opendoor is available in over 50 markets.
- You choose when you close.
- You get a free, no-obligation offer.
- You have to pay a daily fee for late checkout.
- The company has strict criteria for purchasing homes.
- You have no control over repair costs.
Opendoor could work well for you if you need to sell quickly, have a home in good condition, and are willing to accept a lower price than market value. If you meet Opendoor’s purchase criteria, you can complete your sale in as little as a month.
Jesse Zappia, who sold his home with Opendoor, was on a tight selling timeline and wanted an efficient, convenient sale. He sold for less than what he could have gotten using a real estate agent, but having a quick sale was worth it for him.
“If you’re in the situation where you need to have a sale that you can get a quick fire on, and that you can move without having to make those repairs or worry about inspections and appraisals, [Opendoor’s] process really works,” says Zappia. “But you definitely have to be cognizant of the fact that there is a loss associated with that.”
Before selling to Opendoor, we highly recommend comparing its cash offer with offers from other buyers.
A simple way to compare offers is by using a free service like Clever Offers. Clever gathers competing offers on your behalf from reputable cash buyers like Opendoor and Offerpad. You’ll also get a professional estimate of your home’s current value — ensuring you get a fair price for your home.
Opendoor reviews from real customers
Opendoor reviews from customers are mixed, with an average rating of 2.4/5 across 3,451 reviews.
After analyzing the reviews, we found these themes:
- Efficient, hassle-free process: “I did not have time for … showings, and all the things that go into that. Opendoor made it very easy to show my home, proceed through closing, and sell my home with minimal effort. … I was very pleased with the overall process, their professionalism, and the outcome.” — Brady, Reviews.io
- Quality customer service and communication: “My experience was pleasant from beginning to end. … They were professional and proficient. It took me one month to start the process and close. I would definitely recommend Opendoor.” — Michelle Williams, Reviews.io
- Low offers and high repair estimates: “I received an initial offer from Opendoor, and it was low. But I figured the virtual walkthrough would help raise it. 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.” — Robert B., Trustpilot
- No room for negotiation: “Opendoor is great if you want to sell your house fast. The drawbacks for selling fast with Opendoor [include] … no real negotiations with them.” — Brian V., Reviews.io
Opendoor complaints on the Better Business Bureau
Reviewers have left 116 complaints on Opendoor’s Better Business Bureau page.
The complaints include these recurring problems:
- Opendoor making substandard repairs or not completing repairs in resold homes: “We found issues with the home and sent a list to [Opendoor] of what needed to be completed prior to close, and they agreed. They still have not repaired the hole in the vent despite agreeing to this in writing and showing video proof and other items have not been done. We cannot get a hold of anyone including the sellers agent.” — Initial Complaint 03/07/2023
- The company delaying closing and sales falling through at the last minute: “We have been in the process to close on this home owned by Opendoor. We’ve been waiting for a certificate of repairs for over a week and have been extended twice on our closing date. … We are now 10 days past our original closing.” — Initial Complaint 01/10/2022
- Opendoor selling user information on its app to third parties: “Will not stop calling me about selling a property or if I know someone who wants to sell a property.” — Initial Complaint 09/20/2022. Opendoor responded that it does advertise through mailers but doesn’t make outbound calls.
- The company charging high fees: “Before I started the process, I was told I wouldn’t be offered less than the amount I’d been quoted, $305,000. After the evaluation, they would only buy it for $298,000 and … $8,000 worth of repairs and a service charge of almost $15,000.” — Kiah W.
Besides Opendoor’s core iBuying business, the company also has a variety of other real estate services:
- List with Opendoor: Opendoor can connect you with one of its local agents to list your home on the market. The company charges a 5% commission fee, which is comparable to traditional realtor fees.
- Buy with Opendoor: You can purchase a home with Opendoor by submitting offers through its website or app. In some locations, Opendoor also offers exclusive, off-market homes to help buyers avoid bidding wars.
- Opendoor Buy & Sell: Formerly Opendoor Complete, this service lets you sell directly to Opendoor, make an offer on a new home using Opendoor’s cash, and coordinate closing dates.
- Refinancing with Lower: Opendoor’s partnership with Lower, a financial technology platform, can save customers money when refinancing.
How does Opendoor work?
You can sell your home to Opendoor using the company’s iBuying service, or you can use an Opendoor agent to list on the open market. You can also buy a home directly from Opendoor, buy a home on the open market with one of its agents, or trade in your home for a new one using Opendoor Buy & Sell.
If you sell to Opendoor, you can close in 14–60 days. If you buy from Opendoor, you can close in 14–45 days.
Selling to Opendoor
Getting an offer from Opendoor
To request an offer, fill out the form on Opendoor’s website. You provide your address, a photo of your home, and some basic information about your property’s size, condition, and features.
Opendoor then evaluates your home. If your property qualifies, it provides an offer within 24 hours. After it completes an inspection, you receive a final offer that includes deductions for repairs.
You can negotiate your offer with Opendoor. But the company isn’t likely to change the offer unless it missed a big selling point or made an error in the local real estate market valuation. To accept the offer, you sign the purchase agreement and pick a closing date within 14–60 days. You’ll receive cash for your home within a few days of closing.
Opendoor’s inspection and repair process
If you accept Opendoor’s initial offer, then you move to the inspection process. Opendoor asks you to provide a virtual walk-through of your home’s interior. The company sends an Opendoor Estimator to evaluate your home’s exterior.
Opendoor says it looks for things that are broken, in poor condition, or safety issues — not for areas to upgrade.
After the walk-through, Opendoor gives you an estimate of repair costs in 5–7 days. The company deducts the costs from your net proceeds, then makes all the repairs after you close. You can cancel your contract after reviewing the repair costs if you feel they’re too high.
Homes in good condition will likely have few repair costs. For instance, Jesse Zappia had only $5,700 in repair costs. “Our repair costs were very low … the cost of painting and a few minor repairs. But my home was not that old and the appliances were still pretty new.”
But in online reviews, some customers reported that repair costs were higher than they expected and that Opendoor never made repairs before flipping the home.
Additionally, Opendoor doesn’t seem to allow negotiations over repairs or let sellers do repairs themselves. According to Zappia, “My understanding was it was take it or leave it.” Other competitors, like Offerpad and buyers on the open market, let you hire your own contractor to pay for repairs, allowing for a little more control and transparency.
Opendoor purchase criteria
Opendoor doesn’t make an offer on every home. The company is typically only interested in buying homes that meet specific criteria.
|🏠 Home types|| |
•Duplexes (select markets)
•Condos (select markets)
|💰 Value||Between $100,000 and $600,000 (or as high as $1.4 million in select markets)|
|🌳 Lot size||Maximum lot size of 1–2 acres, depending on market|
|📆 Year built||After 1930|
|🔑 Occupancy||Owner occupied|
Opendoor doesn’t make offers on homes that are mobile, prefabricated, or located in a flood zone.
Where does Opendoor buy homes?
Opendoor currently purchases homes in 53 markets across the country:
The company doesn’t offer all its services in every market. You can see a complete list of markets and available services here.
Listing with Opendoor
You can work with an Opendoor agent to list your home on the market. Listing with Opendoor is similar to working with a traditional agent.
The total commission fee is 5% of your home’s sale price. Your agent helps you negotiate other fees, like seller concessions, which could be up to 2%. The buyer may request that you pay for repairs or credits to cover repair costs. And you also have closing costs.
If you decide selling on the open market isn’t for you, you can still accept Opendoor’s cash offer, which is good for 60 days.
Buying from Opendoor
If you’re a buyer and want to work with Opendoor, you can:
- Use its website or app to find a home to buy directly from Opendoor
- Hire an Opendoor agent to buy a home on the open market
- Use its trade-in service to buy and sell at once
In select locations, the company offers Opendoor Exclusives where you can buy off-market homes at lower prices before they go public. This advantage lets you avoid bidding wars with other buyers in hot housing markets. The exclusive price is available for 14 days.
If you buy a home directly from Opendoor, be aware that its prices may be higher than you expect for your area, a common complaint among buyers who have toured Opendoor homes. Moreover, Opendoor may be reluctant to negotiate.
“We see a lot of [Opendoor homes] that seem to be really overpriced,” explains Nashville-based realtor Barry Richards. “And they seem to just have a system of systematically dropping the price until they hit the sweet spot. They don’t tend to negotiate much on whatever current price they have.”
Additionally, in many online Opendoor reviews, buyers state that Opendoor didn’t make promised repairs or made low-quality repairs, leaving buyers to redo them. If you buy from Opendoor, hire a thorough home inspector.
In some markets, you could get a home buyer rebate of up to 1% of the purchase price from Opendoor after you close. Opendoor also offers a 90-day buyback guarantee for a 3% fee, so if you’re unsatisfied with your purchase, you can back out within three months.
|💰 Service fee||5%|
|🤝 Closing costs||1–3%|
|🛠 Repair costs||1–2%|
Opendoor’s service fee is 5% of your home’s sale price, but the total cost ranges from 7–10%, including closing costs and repair deductions.
When selling to Opendoor, Jesse Zappia’s fees included a 5% service charge, 1% for repairs, and about 1% in closing costs. He also paid a daily late checkout fee that allowed him to stay in his house after the closing date while waiting on his new home to close.
If you sell a $300,000 home to Opendoor, your total selling costs will be $21,000–30,000. But you won’t spend any money out of pocket. Instead, Opendoor deducts the fees from the sale proceeds.
Opendoor vs. real estate agent costs
When you use a traditional real estate agent to sell your home, you usually pay about 6% for agent commissions, 1–3% for seller concessions, and another 1–3% for closing costs. That’s a total of 8–12% to sell with an agent versus 7–10% to sell to Opendoor.
However, on the open market, you could sell your home for more than Opendoor offers, especially if multiple buyers make competing offers and drive up the purchase price. If you work with a reputable discount broker, you can also save significantly on listing fees while maximizing your home’s value.
You’ll also have more control over negotiations when working directly with an agent instead of Opendoor — which can result in more money in your pocket.
Is Opendoor legitimate?
Yes, Opendoor is legit. It’s a real estate company that buys homes for cash, and it’s available in 53 markets across the U.S.
The Opendoor business model relies on reselling homes for a profit. The fees it charges are used to cover its carrying and resale costs. Every day Opendoor owns a home while it looks for a buyer costs money in taxes, marketing, utilities, and other expenses.
Due to market changes, Opendoor is cutting operating expenses and slowing down home buying in ways it hasn’t since the beginning of the pandemic.This may make it harder for buyers and sellers to benefit from Opendoor’s services.
The company has also had issues in the past. For example, the Federal Trade Commission required Opendoor to pay $62 million for misleading sellers to believe they would earn more with Opendoor than selling on the open market.Opendoor responded by saying the claims were from 2017 to 2019, and it has since modified its marketing messages.
Best alternatives to using Opendoor
Sell to another cash home buyer
If you still want to sell quickly for cash, you can choose another iBuyer like Offerpad or a “we buy houses” company like We Buy Ugly Houses.
Both options can give you a cash offer within days. iBuyers only buy homes in good condition, and they offer closer to market value. “We buy houses” companies generally look for fixer-uppers, and they rarely pay more than 70% of what they’ll likely net after flipping a home.
We recommend using a free service like Clever Offers to help you compare offers from several companies before making a decision. That way, you can choose the offer that’s the best value for your situation.
List with a realtor, using a cash offer as backup
Another option is to list on the multiple listing service (MLS) with a realtor, which will likely get you the most money for your home. But you can have a cash buyer as a backup, in case your house doesn’t sell quickly enough on the market.
As Nashville realtor Barry Richards says, “You’re going to get the most money when you have people competing with each other, and that’s going to happen when you list on the MLS. But you can use that iBuyer’s offer as a baseline.”
Selling with a realtor may take longer, but many real estate agents can adjust their selling strategy to your timeline. Plus, a good realtor knows how to solicit cash offers from investors and negotiate a fair price. A realtor can also give you a free home valuation report, so you can make an informed decision knowing what your home is worth.
FAQ about selling to Opendoor
Are Opendoor's cash offers worth it?
Opendoor's cash offers could be worth it if selling fast is your top priority. Opendoor can close on your home in as little as 14 days, and it charges lower services fees than its competitors. However, if you want to earn as much money as possible, your best bet is to work with a discount real estate agent who can help you save on commission and sell your home for top dollar on the open market.
Does Opendoor have hidden fees?
No, Opendoor is upfront about its pricing structure and doesn't charge hidden fees. Selling to Opendoor typically costs 7–10% of your home's sale price, which includes a 5% service fee, closing costs, and repair deductions. Compare Opendoor to other iBuyer companies.
What's the difference between an Opendoor preliminary offer vs. a final offer?
Opendoor's preliminary offer is automatically generated, and the company will make it within 48 hours. Opendoor's final offer is based on a virtual home inspection, deductions for repairs, and its 5% service fee. Because of this, the final offer you receive from Opendoor may not be the same as the company's initial offer.
Can you negotiate with Opendoor?
As a seller, you can try to negotiate your Opendoor offer. However, the company doesn't usually adjust its offer unless it made a significant error in your home assessment. As a buyer, you can also attempt to negotiate the price on an Opendoor home, but we recommend working with a real estate agent who can help you decide the best way to negotiate your offer.
Can I cancel my contract with Opendoor?
Yes, you can cancel your Opendoor contract at any time before closing, with no cost. This is one of the perks of selling your home to Opendoor as opposed to other iBuyers, most of which charge a cancellation fee. Learn more about how Opendoor stacks up against its competitors.
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