Opendoor's iBuying service works best when you want to sell your house with minimal hassle. You don't have to worry about repairs or showings, you can choose your close date, and you can complete the transaction entirely online (except for an external home inspection).
But Opendoor's convenience comes at the expense of profit. The company won’t offer you as much as you could get selling on the open market with a real estate agent.
You should also take Opendoor’s initial offer with a grain of salt. Many sellers complain about the final sale price being much lower than the initial offer because of repair costs. Adding in Opendoor's 5% service fee, you may get substantially less money from Opendoor than you were hoping for.
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How much are Opendoor fees?
|Late checkout fees
|$100–400/day + $2,000 security deposit
When you sell to Opendoor, you pay a 5% service fee, plus the typical 1% in closing costs. Closing costs include title fees, transfer taxes, and prorated property taxes.
You also pay for any repairs that Opendoor thinks are necessary after its home inspection. Repair costs can vary widely from seller to seller. We talked to Opendoor customers who paid around 1–3%, while this Reddit user claims he was quoted $30,000 for repairs — about 5% of the $640,000 final offer.
Additional costs include charges for late checkout. If you need to stay in your house past the close date, you pay a daily rate based on your home's market rental value. Opendoor also withholds a $2,000 security deposit from your sale proceeds until you move out.
» READ: Our full review of Opendoor
Opendoor vs. realtor fees
Opendoor's 5% service fee is comparable to the 5–6% realtor commission you’d pay in a traditional home sale. However, the most important factor isn’t fees, but the overall profit you’ll get from your home sale.
You’ll usually make more money selling with a realtor than selling to Opendoor. When you list on the open market with a realtor, buyers compete for your house, which leads to a higher selling price. When you sell to Opendoor, the transaction is a lot faster, but the offer is lower than your home’s fair market value.
In one case that seems typical, real estate analyst Mike DelPrete noted that Opendoor’s initial offer was over 8% lower — or about $50,000 less — than Zillow’s estimated value of the home.
A discount realtor may be a good alternative. Opendoor’s 5% fee is often higher than the 3.5–5% that discount real estate agents charge. With a discount realtor, you can still get full service and a higher sale price, but you pay lower fees than you would with Opendoor or a full-price traditional agent.
Cost comparison: Opendoor vs. traditional realtor vs. discount broker
Here’s an example of how selling a $500,000 home to Opendoor might compare to selling with a traditional real estate agent. These figures are mostly estimates, and costs will vary for each sale.
Your profit from your home sale would be much lower with Opendoor than with a realtor. With a traditional realtor, you could get around $40,000 more. With a discount broker, the difference is up to $50,250 more.
Opendoor fees vs. competitors
Opendoor’s main competitor is Offerpad. Offerpad charges a 5% service fee in line with Opendoor's 5%. But whether you'd sell for more with Offerpad or Opendoor depends on your situation, including repair costs.
We talked to Bradley Carpenter, a seller in Kansas City, who got offers from both companies. He told us, “Offerpad's initial offer was higher, but they dropped it $40,000 after an inspection; Opendoor only came down $7,000 after a less thorough inspection.” Despite Offerpad's higher initial offer, the repair costs made Opendoor the better choice for him.
Another option for a quick cash sale is a “we buy houses” company. These companies don’t usually charge service fees, but their offers are often at least 15–30% lower than market value. However, “we buy houses” companies can close fast, buy distressed properties, and provide alternative financing.
For example, “we buy houses” companies are more likely than Opendoor to agree to a novation agreement. With this agreement, the buyer completes repairs while you still own your house, which improves the home’s overall value. When the home sells at a higher price, the buyer gives you an agreed-upon amount.
It's best to get offers from multiple companies before making a decision. Comparing cash buyers will help you choose the best offer, ensuring a quick sale without leaving money on the table unnecessarily.
Compare offers from Opendoor and other top cash buyers to the sale price you'd get with an agent.
Does Opendoor charge hidden fees?
Opendoor doesn't have hidden fees. The company prides itself on transparent pricing.
However, repair costs might be significantly higher than you anticipated — and Opendoor's final offer could be much lower than your original estimate. This situation is mentioned in several Opendoor customer complaints.
For example, Jesse Zappia told us that Opendoor’s “initial offer was somewhat closer to the 600,000 number. ... And then when they came back and gave me an offer it was $566,000. So it was a significant jump.”
Because repair costs vary so much, you should get offers from multiple cash buyers. That way, you can see which company’s offer is best and also get some negotiating leverage.
For example, when Offerpad offered Bradley Carpenter more than Opendoor, he decided to contact Opendoor. He explained, “I sent [Opendoor] the Offerpad offer, and I said, ‘Hey, Offerpad offered me $3,000 more than you. Are you guys willing to come up a little bit?’” Opendoor ultimately increased its offer, which Bradley accepted.
|✍️ Editor’s note: There’s no penalty for walking away from an Opendoor offer. If the final offer isn’t what you expected, you can say no and find a listing agent instead.
Bottom line: Are Opendoor's fees worth paying?
Whether Opendoor's fees are worth it depends on how much profit you're willing to sacrifice in order to avoid the traditional listing process.
Jesse Zappia, who sold his home to Opendoor in 2022, said this about the trade-off:
"We were in a position where taking ... less money was worth it for us. If you go in with that mindset, it's great. But if we were in a scenario where we weren't as timebound, I think going the traditional route is probably the way we would go, just to get the better profitability out of it."
If you're considering selling to Opendoor but worried about losing equity, you should compare multiple cash offers against a realtor's estimate of what you'd get selling as is on the open market.
In a seller's market, where there's high demand for homes, you might be able to sell without making repairs or offering concessions. In other cases, you can use an initial cash offer to negotiate a higher price with a competing buyer.
FAQ about Opendoor fees
How much does Opendoor charge to sell a house?
Is Opendoor more expensive than selling with a realtor?
Opendoor's 5% service fee is about the same as standard realtor commission rates. However, you probably won't net as much as you would selling with a realtor. And you can pay a lot less in fees with a discount brokerage. The best low commission realtors match the service and support of a traditional agent, but they charge a fraction of the price.
Can you negotiate fees with Opendoor?
No, Opendoor’s service fee is non-negotiable. You may be able to negotiate with Opendoor on its offer price, but you'll likely need proof that it missed something important — such as home improvements that aren't noted in public records.
Does Opendoor charge closing costs?
Yes. If you sell to Opendoor, you still have to pay traditional closing costs, which average 1% of the sale price. These costs include title fees, transfer taxes, and prorated property taxes.