How Opendoor works for sellers | For buyers | Is Opendoor legitimate? | Opendoor fees | How much can you save? | Alternatives to Opendoor | Is Opendoor right for you?
Opendoor is the nation’s largest iBuyer, a company that makes near-instant cash offers on homes. Opendoor is a decent option for homeowners who need to sell quickly. But it has some drawbacks, such as not offering top dollar for most properties.
Working with a traditional real estate agent usually nets you more profit, even if you need to sell your home quickly. Our partners at Clever Real Estate can match you with top real estate agents in your area. Clever’s agents work for just 1.5% commission, potentially saving you thousands. You can interview as many as you like for free and with no obligation.
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Opendoor reviews
| Company | Average rating (out of 5) |
|---|---|
| BBB (190 reviews) | 1.36 |
| Trustpilot (61 reviews) | 1.4 |
| Weighted average | 1.37 |
Opendoor reviews from sellers
Pros
- Speed of sale
- Closing flexibility
- Easy process to navigate
Cons
- Less than market value
- Not all homes qualify
- Limited availability
Selling with Opendoor comes with a lot of positives. You might sacrifice some of your profits, but you get out of doing repairs and scheduling open houses.
However, online Opendoor reviews don’t always have nice things to say about the company. You’ll find many negative reviews on Trustpilot. Overall, commenters noted frustration with a lack of communication and transparency from Opendoor.
The Better Business Bureau (BBB) had a few positive Opendoor reviews that mentioned how easy and fast it was to sell a home. In addition, those reviewers were happy with the offers they received and got paid quickly.
Opendoor reviews from buyers
Pros
- Can bring your own agent
- Fast close (14–45 days)
- Large selection of homes
Cons
- Less negotiation leverage than if buying from the homeowner
- Difficult to tour homes using the app
Many Opendoor reviewers on BBB say they had trouble accessing self-guided home tours using the Opendoor app.
When you arrive, the app scans the home’s code and is supposed to unlock it. However, one user stated an Opendoor representative told her she couldn’t tour the house without one of the company’s agents present.
Some buyers were concerned with Opendoor’s customer service response time. But, mostly, buyers sensed the “deck is stacked” in Opendoor’s favor.
How Opendoor works for sellers
Homeowners submit a questionnaire and photos of their property to Opendoor to begin the offer process. The site doesn’t require photos, but photos can help you get a higher offer.
Opendoor also asks you to record a video walkthrough of your home. It reasons that more information results in a more accurate price.
Only certain homes are eligible for an Opendoor cash offer. Homes must meet these criteria:
- Single-family homes or townhomes, with duplexes and condos eligible in certain markets
- Valued between $100,000–$600,000, with exceptions up to $1.4 million in certain markets
- Maximum lot size of 2 acres
- Typically must have been built after 1930
- Can’t be in a flood zone
- Owner must have a free and clear title of the home
- Located in a market where Opendoor operates
The company considers several elements to determine your home’s value:
- Unique features of your home
- Upgrades to your home
- Your home’s location
- Recent sales of similar homes (also known as comps)
- Current local real estate market trends
How to get an offer from Opendoor
After submitting the online form, you’ll get an initial cash offer for your house within 48 hours if your home qualifies.
Here’s a step-by-step guide to getting an offer from Opendoor:
- Complete Opendoor’s instant offer form on its website. You’ll need your property address, size, condition, features, and photos.
- Check your email inbox for an offer. Opendoor sends you a preliminary offer and may request more information to give you an updated offer.
- Record a video walkthrough of your house. A walkthrough gives Opendoor more information about your house so it can give you the best price.
- Review the offer. The final offer expires in seven days. However, you can extend it to 14 days if you schedule a virtual walkthrough.
- Accept the offer. If you’re satisfied with the offer, sign the purchase agreement and set a closing date.
- Close on the sale. You can choose a closing date based on your timeline. Opendoor will transfer the funds within a few days after closing.
An Opendoor agent will do a free virtual assessment from your video walkthrough. If Opendoor requests repairs, the costs come out of your net proceeds. You can cancel the contract without penalty before closing if you disagree with the requested repairs or think you can get more on the open market.
Generally, you should expect Opendoor’s purchase offer for your home to be below the listing price, but that’s a sacrifice some home sellers are willing to make for a cash offer.
It’s a good idea to figure out how much your home is worth before selling to Opendoor so you know how much money you may be leaving on the table. Our friends at Clever can help you weigh your options. With Clever’s cash buyer program, you can match with a top local real estate agent who can get you offers from iBuyers and compare them with you. The agent will also show you how much you can sell your home for on the open market (and you’ll save money on closing costs since Clever only charges a 1.5% fee for most home sales).
If you think Opendoor is better, great! But if you think you can get more elsewhere, Clever’s partner agents will help you sell to someone else.
Want to learn more? Just fill out the form below to get started!
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How Opendoor works for buyers
Opendoor’s website lists hundreds of homes for sale, including homes they own and listings from the MLS (multiple listing service). If you see a property you like, you can tour it at your convenience between 6 a.m. and 9 p.m. daily.
Buying a house with Opendoor is similar to the traditional buying process. You can submit an offer directly or through your agent. You’ll typically get a response within a day or two. If a seller accepts your offer, you’ll sign a purchase agreement and proceed with the home-buying process.
You can close on your home within 2​​–5 weeks. Buyers pay around 2%–5% of the sale price in closing costs.
Can you negotiate with Opendoor?
Opendoor rarely negotiates with customers. You may have more leverage working with a real estate agent.
Opendoor says it will work with you to find a fair price for both parties, so there may be some wiggle room to negotiate — but don’t expect any major changes.
If you want your best shot at negotiating a home purchase with Opendoor (or any other seller), you should have an agent by your side.
If you’re looking for a great local agent, try out our partners at Clever Real Estate. Clever partners with expert agents from companies like Coldwell Banker, RE/MAX, and Keller Williams — and in 41 states, buyers can receive cash back on home sales just for using Clever.
🏡 Earn cash back when you buy a home
Did you know that 41 states and Washington D.C. allow cash rebates after closing? Our friends at Clever Real Estate can get you 0.5% cash back, just for finding a qualified local realtor through their network.
Is Opendoor legit?
Yes, Opendoor’s offers are legitimate. The company launched in 2014 in San Francisco and has helped thousands of customers.
Opendoor makes its money by charging service fees when buying property from sellers. It can also make money by selling a home for more than it paid.
Opendoor has a decent reputation for making fair home offers, while other iBuyers may be more likely to low-ball sellers.
Opendoor fees
Opendoor’s fees are a little lower than its competitors. Whether you sell your home to Opendoor or list with them, the fee remains 5% — nearly the same as working with a real estate agent. You can sell directly to Opendoor or list your home with them on the open market.
| Expense | Selling to Opendoor | Listing with Opendoor |
|---|---|---|
| Service fee | 5% | 5% |
| Estimated closing cost | 1% | 1% |
| Estimated seller concessions | None | 0-2% |
| Repairs | Varies (based on Opendoor assessment) | Varies (based on buyer inspection) |
How much can you save with Opendoor?
Opendoor charges a 5% service fee on the home’s sale price to buy or list your home. Since traditional real estate commissions are around 6%, sellers save little on fees.
However, our partners at Clever Real Estate can connect you with top local real estate agents who can help sell your home for a 1.5% listing fee plus a 3% buyer’s agent commission.
For example, the average new home sales price in the U.S. was $501,000 as of April 2023, according to the U.S. Census Bureau. Based on that price, here’s what you can expect to pay in commission or service fees:
- Traditional Realtor Fees (6% total): $30,060
- Opendoor Fees (5%): $25,050
- Clever Real Estate Realtor Fees (4.5% total): $22,545
However, you must also consider the impact on profit of the different options. An iBuyer like Opendoor generally offers below fair market value. Listing on the market through an agent can increase your sales price and your profits.
But don’t just take our word for it — have a real estate agent get you offers from iBuyers, compare them, and then see how much you could sell for on the open market. That’s what you can do with Clever’s cash buyer program.
Plug in your ZIP code below, and a Clever agent will contact you. They’ll match you with up to three local realtors who can help you compare offers from cash buyers. Use their expert knowledge to decide how and where you want to sell. You might make more from Opendoor than putting your home on the market, or vice versa!
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How Opendoor compares to other iBuyers
Among similar iBuyer firms, Opendoor’s fees are slightly lower. Here’s how it compares.
| Company | Fees | Avg. Rating | Locations | Incentives |
|---|---|---|---|---|
| Opendoor | 5% | 4.3/5 | AL, AZ, CA, CO, FL, GA, ID, IN, MA, MI, MN, MO, NM, NV, NJ, NY, NC, OH, OK, OR, SC, TN, TX, UT, VA | Buying, selling |
| Offerpad | 6% | 3.7/5 | AL, AZ, CA, CO, FL, GA, IL, IN, KS, MO, NV, NC, OH, SC, TN, TX, UT | Bundle rewards for selling, buying, financing |
| WeBuyHouses | None | 4.6/5 | Nationwide (except AK) | None |
Opendoor vs. Offerpad
Offerpad’s fees are similar to Opendoor’s, but Offerpad adds a fee for sellers who withdraw more than four days after the inspection report. Also, Offerpad has a history of making lower offers to sellers compared to Opendoor.
Opendoor vs. WeBuyHouses
While Opendoor prefers homes in good condition, WeBuyHouses will buy homes in poor condition that need repairs. To offset those costs, WeBuyHouses will offer you less than the fair market value to compensate for the cost of fixing it up.
iBuyers and cash buyers are rarely the best options to get the most money for your house. Listing your home on the open market with a real estate agent is usually a better way to make a bigger profit on your sale. Before selling to an iBuyer, we recommend talking to a realtor.
Our partners at Clever can match you with top local agents. You can interview multiple realtors to better understand your home’s fair market value — it’s completely free, and you’re under no obligation.
If you choose to work with a Clever agent, you’ll save thousands thanks to their 1.5% listing fee. Get matched with top agents near you.
What is Opendoor?
Opendoor is an iBuyer company. It buys houses for cash, usually offering less than fair market value. Homeowners can also use the company to list their homes on the market.
To get an offer, homeowners enter their home’s information on Opendoor’s website. The offer usually arrives in a few minutes, and Opendoor promises a sale within days for qualifying homes.
Unlike some iBuyers or “we buy houses for cash” companies that buy fixer-uppers, Opendoor focuses on buying move-in ready homes in good condition.
How does Opendoor work?
Opendoor has options for buyers and sellers. You’ll pay a flat 5% fee if you’re selling your property. The fee is slightly lower than a traditional agent commission of 6% but significantly more than the 1% you’ll pay when working with a discount real estate broker.
Homeowners are drawn to Opendoor if they need to sell their homes and get cash in hand quickly. The entire process can take just a few weeks. Usually, sellers receive an Opendoor offer within 48 hours and can close in as few as 14 days. Opendoor says it offers flexible timelines for sellers, and closing can extend to 60 days.
Opendoor also works with buyers. If you’re looking for a house, search the website for available properties and submit an offer directly online or through your real estate agent. Typically, homebuyers using Opendoor close within 14​​–45 days, making it fast and straightforward to buy a home.
When buying through Opendoor, you won’t pay a fee for their service. However, you’re responsible for the buyer’s closing costs — usually around 2% to 5% of the sale price — no matter how you choose to buy the home.
Is Opendoor right for you?
Opendoor is an option for homeowners who don’t want the hassle of selling their house traditionally. However, with Opendoor, you won’t get top dollar for your home.
If you want free advice, try our friends at Clever Real Estate. With Clever’s cash buyer program, you’ll get a realtor who can get you offers from cash buyers. Then, they’ll help you compare those offers and determine the best price for you.
If you choose to sell with a Clever agent, you’ll only pay 1.5% ($3,000 minimum). Or, you may need to sell fast, and a cash buyer offer may be the best route. Either way, you’ll make an informed decision.
Interested in learning more? Fill out the form below to get started!