Companies Like Opendoor: Alternative Options to Consider

By 

Jamie Ayers

Updated 

March 24th, 2020

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Learn how Opendoor's business model works. Discover the difference between selling your home to Opendoor or selling your house with the help of Clever Real Estate. Find a top-rated Clever Partner Agent working in your area.

Opendoor is part of a new real estate movement known as "iBuying" — companies that make near-instant, all-cash offers on qualifying homes.

If your home fits the company's criteria, you'll get a preliminary offer within 24 hours. In some cases, the entire sale can take as few as 14 days, from accepted offer to closing.

This can be a great option for people who need to sell quickly or simply want to avoid the stress and hassle of the traditional listing process.

In exchange for this service, Opendoor charges a fee — 3.5-5% — which helps offset carrying costs and ensure it turns a profit on each transaction.

Of course, Opendoor isn't the only fish in the sea. There are a number of other iBuyers out there, each with its own set of unique advantages and drawbacks.

Keep reading to learn more about Opendoor and how it stacks up against top competitors.

Opendoor's Business Model: A Quick Overview

Founded in 2015, Opendoor is often credited with launching the iBuyer movement in the United States.

Its primary goal is to save homeowners time and stress by offering a quick and convenient alternative to the traditional home selling process.

It also offers potential cost savings: when you sell to Opendoor, there's no need to hire a real estate agent, post a property listing, pay for professional photos, negotiate with buyers, or hire a real estate attorney.

The company uses advanced algorithmic technologies, massive amounts of data, and a team of in-house experts to make fair, competitive offers on the properties it buys.

In order to turn a profit, the company charges a service fee of 3.5-5%.

Because it buys and resells properties at an incredibly high volume, Opendoor is able to mainly relatively thin margins on each sale, relying on its fee and market appreciation to turn a profit.

Importantly, this sets the company apart from traditional house flippers and cash buyers (think We Buy Ugly Houses), who profit by lowballing sellers then turning around and re-listing for a massive profit.

A few additional key considerations:

  • Even if your home qualifies for an Opendoor offer, you may still be on the hook for repairs. These will be assessed during an on-site inspection, and costs will be deducted from your final offer price.
  • The company has strict criteria and is currently active in only 23 U.S. markets — read our full Opendoor review to find out what kinds of homes Opendoor will buy, and where.

Top Alternatives to Opendoor

We've compiled a list of some of the top Opendoor alternatives out there today — click on the link to read a full, in-depth review of each company:

Offerpad

Offerpad

Full Review

Service Fee

6-10%

Closing Date Window

10-90 days

Average Rating

1.8/5 (57 reviews)

Editor's Take
Pros & Cons
Locations
Reviews
Contact

Offerpad promises the certainty of a cash offer and a fast closing on a date you choose. But its restrictive purchase agreement, hidden cancellation fee, and negative online reviews suggest it's riskier than other iBuyers.

Pros

  • Generous closing window compared to competitors
  • Late checkout option gives sellers up to 3 days to move out after closing
  • Access additional services, such as free local moves within 50 miles


Cons

  • You'll have to sign a binding contract before knowing the final offer price
  • You might face a 1% cancellation fee
  • Offerpad reserves the right to back out at any time

Offerpad is currently purchasing homes in 14 locations. 

  • AZ: Phoenix, Tucson 
  • AL: Birmingham 
  •  FL: Jacksonville, Orlando, Tampa 
  • GA: Atlanta 
  • NV: Las Vegas 
  • NC: Charlotte (+ neighboring parts of SC), Raleigh 
  • TX: Austin, Dallas-Fort Worth, Houston, San Antonio

As of February 15, 2021, Offerpad's average customer rating is 1.8/5 based on 57 reviews.

  • Website: www.offerpad.com
  • Phone: 844-388-4539
  • Email (Sellers): info@offerpad.com
  • Email (Buyers): buyers@offerpad.com
SHOW MORE

» READ: The full Offerpad guide here

Zillow Offers

Zillow Offers

Full Review

Service Fee

6% + 1.5-9%

Closing Date Window

7-90 days

Average Rating

Not available

Editor's Take
Pros & Cons
Locations
Reviews
Contact

Zillow Offers can be a convenient option for sellers — but its fees can potentially be higher than competitors. If you're in a market where there are multiple iBuyers, it's worth shopping around to find out which will give you the best cash offer.

Pros

  • Extra time to decide: Initial cash offers are valid for 5 business days
  • Generous closing window compared to competitors
  • Offers are typically within 1-2% of fair market value


Cons

  • Fees could total up to 13.9% (6% selling fees plus a maximum 7.9% in service fees)
  • Upselling: Zillow will try to get you to work with a premier agent, even if you decline its cash offer
  • No option to do repairs yourself

Zillow Offers currently purchases homes in 25 locations.

  • AZ: Phoenix, Tucson 
  • CA: Los Angeles, Riverside, Sacramento, San Diego 
  • CO: Colorado Springs, Denver, Fort Collins 
  • FL: Jacksonville, Miami, Orlando, Tampa 
  • GA: Atlanta MN: Minneapolis 
  • NC: Charlotte, Raleigh 
  • NV: Las Vegas 
  • OH: Cincinnati 
  • OR: Portland 
  • TN: Nashville 
  • TX: Austin, Dallas, Houston, San Antonio

As of February 15, 2021, Zillow Offers does not have any verified customer reviews on reputable third-party review sites.

SHOW MORE

» READ: The full Zillow Offers guide here

Orchard

Service Fee

6%

Closing Date Window

14-60 days

Average Rating

4.6/5 (97 reviews)

Editor's Take
Pros & Cons
Locations
Reviews
Contact

Orchard is a home trade-in service that allows you to purchase a new home by getting access to your current home's equity. You can then list your old home on the market with an Orchard listing agent.

If you need to move quickly, but still want to get top dollar for your home, Orchard is worth considering. However, Orchard only accepts newer homes compared to its competitors.

Pros

  • You'll have a generous 7-day window to consider Orchard's offer
  • Use Orchard's Offer Boost program to make a cash offer on a new home
  • If your home doesn't sell in 120 days, you can accept Orchard's guaranteed cash offer


Cons

  • Homes must be relatively new, compared to competitors (built after 1972 vs. 1930-1960)
  • Orchard's cash offers will likely be much lower than what you'd be able to sell for on the open market

Orchard is currently operating in nine locations.

  • CO: Colorado Springs, Denver 
  • GA: Atlanta 
  • NC: Charlotte, Raleigh-Durham 
  • TX: Austin, Dallas-Fort Worth, Houston, San Antonio

As of February 15, 2021, Orchard's average customer rating is 4.6/5 based on 97 reviews.

SHOW MORE

» READ: The full Orchard guide here

RedfinNow

RedfinNow

Full Review

Service Fee

6-12%

Closing Date Window

10-30 days

Average Rating

Not available

Editor's Take
Pros & Cons
Locations
Reviews
Contact

Compared to its competitors, RedfinNow handles a relatively small volume of iBuyer sales. However, RedfinNow shines in several niches, thanks to its willingness to accept older homes and its availability in a wide range of California cities. 

Pros

  • Expanded presence in cities across California, including several not served by other iBuyers
  • Large and trusted corporate brand
  • Older homes (built after 1930) are eligible in select cities


Cons

  • Relatively expensive services fees (up to 12% of the offer price)
  • Relatively limited flexibility on closing window, compared to competitors
  • Verified customer reviews are unavailable

RedfinNow is currently purchasing homes in 14 locations.

  • AZ: Phoenix 
  • CA: Inland Empire, Los Angeles, Orange County, Palm Springs, Sacramento, San Diego, San Francisco 
  • CO: Denver 
  • TX: Austin, Dallas, Houston, San Antonio 
  • WA: Seattle

As of February 15, 2021, RedfinNow does not have any verified customer reviews on reputable third-party review sites.

SHOW MORE

» READ: The full RedfinNow guide here

We Buy Ugly Houses

We Buy Ugly Houses

We Buy Ugly Houses

Phone Number

866-200-6475

Time to Offer

Varies - pending home evaluation

Minimum Time to Sell

Close in as few as 30 days

Description
Locations
Reviews

We Buy Ugly Houses is a national franchise owned by Homevestors. Franchises are independently run by local investors who use the We Buy Ugly Houses brand to advertise their services. 


Steps to sell with We Buy Ugly Houses:

  1. Call We Buy Ugly Houses and speak to a representative about your home, or fill out the form on their website.
  2. Schedule a visit for a local franchisee to view your home. They will answer any questions you may have and evaluate you home. If the franchisee thinks your home is worth investing in, you will receive a cash offer on the home.
  3. Set up a time to close on the sale if you choose to accept the deal. This can happen as fast as three weeks after accepting the cash offer.


As a franchise, experiences with We Buy Ugly Houses will vary from region to region, based on the local investor you're paired with.

As of May 22, 2020, We Buy Ugly Houses's parent company, Homevestors, has an A+ rating on the Better Business Bureau. No other third-party reviews are available at this time.


This rating is based on overall national data. Research local franchises for specific reviews that reflect their quality of service. 

SHOW MORE

» READ: The full We Buy Ugly Houses guide here

Knock

Service Fee

1.25%

Closing Date Window

Varies

Average Rating

4.8/5 (710 reviews)

Editor's Take
Pros & Cons
Locations
Reviews
Contact

Knock allows customers to purchase a new home before selling their old one. Unlike typical iBuyers, you'll sell on the open market with a traditional real estate agent. Knock will cover your old mortgage until your home sells — but you'll still eventually have to settle up, and costs can add up fast if your home sits on the market.

Pros

  • You'll sell on the open market, potentially receiving offers above fair market value
  • $25,000 advance for home repairs before selling
  • Compared to competitors, Knock accepts older homes (built after 1930)


Cons

  • Fees can add up quickly if your home sits on the market
  • You'll have multiple points of contact rather than one dedicated agent
  • Buyers will need to be proactive and independent in their home search

Knock is currently operating in 15 locations.

  • AZ: Phoenix 
  • CO: Denver 
  • FL: Fort Lauderdale, Jacksonville, Miami, Orlando, Tampa, West Palm Beach 
  • GA: Atlanta 
  • NC: Charlotte, Raleigh-Durham 
  • TX: Austin, Dallas-Fort Worth, Houston, San Antonio

As of February 15, 2021, Knock's average customer rating is 4.8/5 based on 710 reviews.

SHOW MORE

» READ: The full Knock guide here

Which option is best for you?

As you may have guessed, there's no single, correct answer to this question. The right choice ultimately depends on your unique situation, priorities, and requirements.

Your home is one of the most valuable assets you'll ever own. As such, we recommend exploring as many options as possible before making a final decision on how to sell.

That means not only requesting offers from multiple iBuyers, but also speaking to a few local real estate agents to see if you might be able to net you more money on the open market within your required timeline.

Either way, we recommend seeking some advice from an expert.

If you're currently weighing your options, Clever can help! Our team of licensed experts is standing by to answer your questions, offer free advice, and refer you to the best home selling solutions, given your specific needs and goals.

Importantly, our referral service is 100% free and there's never an obligation to move forward with any of our recommendations. Fill out the form below to speak with one of our licensed experts!

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