Opendoor Fees: The true cost of selling to Opendoor

Andrew Whytock

By 

Andrew Whytock

August 16th, 2021
Updated August 16th, 2021

SHARE

Opendoor service fees | Hidden fees | Closing costs | Opendoor vs. realtor fees | FAQs

Opendoor is an online service that buys houses for cash for a service fee of up to 5%. This is known as iBuying, and it takes the hassle out of selling by giving the home seller a quick, predictable sale.

Opendoor sign

Opendoor charges a service fee that currently ranges from 3.5% to 5% of the sale price, although historically it’s been as high as 14%.

In some cases, selling with Opendoor can be cheaper than a traditional sale with a listing agent. However, there are several factors beyond the service fee that will still affect the overall cost, including:

  • Final sale price: What Opendoor is willing to pay you for your home.

  • Repair costs: Deductions that Opendoor makes from the offer based on their assessment.

  • Seller closing costs: Closing costs that you, the seller, still have to cover, like prorated property taxes, title fees, and transfer taxes.

How much are Opendoor's fees?

Opendoor has currently capped their service fee at 5% of their sale price, but for some sellers, the fee may be as low as 3.5%. It really depends on the local real estate market and the unique characteristics of your home.

However, the service fee isn’t the only cost that you have to consider when you sell to Opendoor.

Opendoor splits all closing costs 50/50 with the seller, so your portion could range from 1-3%, as it would in a traditional sale.

Also not included in the service fee are any costs that Opendoor may need to deduct for repairs.

It’s difficult to know how much Opendoor will deduct for repairs since every property is different. If they charge home repair costs similar to those incurred by typical sellers, then they may be as high as 2% of your home's value.[1]

Adding all of these factors up, the total cost of selling a home to Opendoor ranges from 5.5-10% of the final sale price.

» READ: Our full review of Opendoor.

Does Opendoor have any hidden fees?

Opendoor prides itself on transparent pricing, so there are no hidden fees that sellers will encounter during their transaction.

However, repair costs might end up being significantly higher than you anticipated — resulting in a final offer that’s much lower than your original estimate.

Some Opendoor customers complain that there was a dramatic difference between their Opendoor estimate and the final offer that they received as a result of inflated repair costs.

While this might be true, it’s also possible that omitting or not being aware of maintenance issues in your home could be the problem.

Be as thorough and accurate as possible when you complete the estimate form online, so your Opendoor inspector doesn’t reveal something that could dramatically impact their offer.

In some situations, Opendoor may actually recommend that you list your home on their website and sell with one of their agents if the repair costs end up being so great that the transaction isn’t mutually beneficial — meaning that there isn’t enough margin for Opendoor to cover their carrying costs and still make a profit.

✍️ Editor’s note
There’s no penalty for walking away from an Opendoor offer, so if the final offer isn’t what you were expecting, you can say no and find an agent who will list your house for you instead.

Get a free comparative market analysis from an agent!

If you’re interested in selling, a real estate agent can provide you with a comparative market analysis (CMA) to help you determine what your home is worth. A free, no-obligation CMA is a great way to compare your Opendoor offer with what your house might be worth on the open market.

Connect with an agent and get a free CMA today!

Does Opendoor pay closing costs?

No — if you sell to Opendoor, you’ll still have to pay 50% of the closing costs.

In a typical real estate transaction, seller closing costs range from 1-3% of the sale price and include things like:

  • Title fees

  • Transfer taxes

  • Prorated property taxes

Opendoor’s pricing page assumes that closing costs for the seller will only be 1%, but in reality, it’s often more, so make sure you’re aware of this when you submit your request for an estimate.

Opendoor vs. realtor fees

Selling to Opendoor costs 5.5-10% between service fees, repair costs, and closing costs. By comparison, selling with a realtor costs anywhere from 8-13%.

While closing costs and repair costs are similar, Opendoor’s maximum service fee of 5% is slightly cheaper than the typical 6% realtor commission.

However, a realtor might be able to sell you home for more than Opendoor is willing to pay. Opendoor even assumes this on their pricing page by noting that you could get almost 3% more by selling with a realtor.

Fee
Selling with Opendoor
Selling with a realtor
Service fee/realtor commission
3.5-5%
6%
Closing costs
1-3%
1-3%
Repair costs
1-2%
1-2%
Seller concessions
--
0-2%
Total
5.5-10%
8-13%

One important difference with Opendoor’s repair costs is they are a deduction from your offer, not a cash charge. This could be good news for sellers who aren’t able to contribute more cash when they’re trying to sell their house.

📝 A note about seller concessions
Opendoor proudly claims that when you sell with them you won't have to pay any seller concessions— additional costs that the buyer negotiates for the seller to cover, often including things like repair credits and a home warranty.

While this is technically true, it could also be disputed.

Since repair credits are a common element of seller concessions, and since Opendoor does deduct money from their offer for repair credits, we could argue that they do in fact request seller concessions without calling them such.

Opendoor cost comparison

Here’s an example of how selling with Opendoor would compare to selling with a real estate agent.

For the sake of this scenario, let’s assume that the seller still owes $200,000 on their mortgage, and that all costs (except service fee/commission) are equal.

Opendoor cost comparison

As you can see, this scenario nets the seller $3,000 more when they sell with Opendoor, if all things are equal.

But all things are rarely equal.

A couple of important variables to consider are:

  • The sale price: Opendoor might not be willing to pay as much as a motivated private buyer in a competitive market. If, in the previous example, Opendoor was only willing to pay $280,000 instead of $300,000, the seller would only net $57,600, making it more worthwhile to list with an agent.

  • Predictability: If you list with an agent, you could still sell quickly, but the process won’t be as predictable as it will be with Opendoor. In 2020, the average house spent just 25 days on the market.[2] However, there’s traditionally a 30-45 day closing period, so selling on the open market really takes 55-70 days from start to finish. With Opendoor, you can close in just 14 to 45 days.

Ultimately, the value of using Opendoor depends on your situation and goals as a seller.

Opendoor is best for sellers who want a quick, predictable sale with minimal hassle. While the price that Opendoor pays might be less than what a motivated private buyer would pay, the convenience of having someone else handle repairs might be worth it.

Working with a realtor may cost slightly more up front as you’ll have to pay for repairs yourself and pay the cost of realtor commissions, but in the end, it could net you slightly more money. This is the best option if you’re in a competitive market, have time and money to prepare your house for a sale, and don’t mind having to open your house up for showings.

FAQs about Opendoor fees

How much does Opendoor charge to sell a house?

Opendoor’s service fee is typically 5% of the sale price. Historically, Opendoor’s fees have been as high as 14%, but the company has currently capped their fees to compete with other iBuyers. Read our in-depth Opendoor review to learn more!

Is Opendoor more expensive than selling with a realtor?

That depends. Opendoor's 5% service fee costs about the same as standard realtor commission rates, but you may get less for your home than selling to an ordinary buyer. If getting top dollar for your home is a priority, consider selling with a discount brokerage. The best low commission realtors match the service and support of a traditional agent but charge a fraction of the price.

Does Opendoor have any hidden fees?

No, Opendoor does not have any hidden fees. But, you should be aware that you'll still have to cover closing costs (1-3%) and that Opendoor will likely deduct repair costs from your final offer.

Related reading

ARTICLE SOURCES

Better real estate agents at a better rate

Enter your zip code to see if Clever has a partner agent in your area.

If you don't love your Clever partner agent, you can request to meet with another, or shake hands and go a different direction. We offer this because we're confident you're going to love working with a Clever Partner Agent.