Opendoor helps to take the stress out of selling a home by making the experience fast and easy. They can make a preliminary cash offer within 24 hours and allow you to pick a closing date.
There is a 5% service fee for this streamlined service, which might be worth it depending on your situation and priorities as a seller.
As an iBuyer, Opendoor's business model relies on purchasing houses with enough margin to make a small profit on each transaction. That means the most they'll pay you for your home is its fair market value, so there's a good chance you'll get more on the open market.
Is Opendoor worth it?
With a 5% service fee, Opendoor might not be worth it for everyone. However, if you're in a rush and need to sell your home quickly with minimal hassle, Opendoor is definitely worth looking into.
It's unlikely that Opendoor will pay you as much as you'd be able to get on the open market.
Then again, there's no guarantee that you get a quick, predictable sale on the open market either.
All you have to do to get an offer from Opendoor is submit the estimate form online. You'll have an offer within 24 hours, and if you aren't pleased with it, there's no penalty for saying no.
If you accept the offer, Opendoor will send an inspector to assess your home for repairs. You'll then be presented with a final offer that includes deductions for repairs.
Next, you can pick a closing date that works for you.
⚡ Quick tip
If you feel that Opendoor's repair costs are too high, you are allowed to get your own assessment or conduct the repairs yourself. Keep in mind that this will slow things down, which could be detrimental if you need to sell quickly.
» READ: Our full review of Opendoor.
✅ Opendoor might be worth it for…
❌ Opendoor might not be worth it for...
Does Opendoor pay a fair price?
Yes, according to the experts, Opendoor pays a fair price for the homes it buys. One 2019 report found that they purchased homes for about 98.6% of their estimated value.
Unlike a traditional house flipper, who buys low and sells high, Opendoor pays close to fair market value. They rely on short-term market appreciation, their service fee, and the revenue generated by offering additional services (e.g. title) to earn a slim profit on each transaction.
» MORE: How does Opendoor makes money?
Opendoor is able to keep its margins slim because it's operating on a massive scale. Spread across thousands of transactions per year, those slim margins add up to a huge amount of revenue.
Does Opendoor negotiate?
Opendoor typically doesn't negotiate their offers or fees. Generally speaking, what you see is what you get.
That said, if you don't agree with Opendoor or feel that something's been overlooked, you can request a second evaluation and submit additional evidence to support your case for a higher offer.
It's also worth mentioning that unlike some other iBuyers, Opendoor allows you to back out of the sale without a penalty if you disagree with their final pricing.
» LEARN: Tips for negotiating with Opendoor.
How much are Opendoor's fees?
Opendoor charges three types of fees:
- Service fee: currently 5%
- Repair costs: these may or may not be required (1-2%)
- Closing costs: you'll pay typical seller closing costs (1-3%)
It's worth mentioning that Opendoor does give you the option to make the repairs yourself or hire your own contractor. Opendoor will, of course, have to sign off on the repairs before closing.
If you don't want to worry about them, you can opt for Opendoor to handle the repairs, and the cost of fixes will be deducted from the sales price.
Does Opendoor pay closing costs?
The short answer is unfortunately no. You'll still be responsible for closing costs with expenses that are on par with a traditional sale.
You'll be expected to cover closing costs such as title insurance, escrow costs, recording fees, notarization, and transfer taxes to name a few. In total, your closing costs will add up between 1% and 3% of the sales price.
How quickly will I sell my home with Opendoor?
Opendoor truly shines when it comes to speed. With a traditional sale, between prepping your home, showing it, finding a buyer, waiting for inspections, making repairs, moving into escrow, and closing, selling your home can take months.
Going the traditional route, it typically takes around five weeks to find a buyer and anywhere between an extra 30 to 45 days for closing. But with Opendoor, you'll get an offer on your home within 24 hours.
Another perk with Opendoor is that you decide your selling timeline, giving you more flexibility if, for instance, you're trying to time moving into another home or need to move quickly for a new job. Opendoor lets you schedule your closing and moving dates based on your needs.
This eliminates the possibility that you'll have to cover two mortgages, move multiple times, or pay for a storage unit.
Should you sell to Opendoor?
There's really no universal answer — it depends on your situation and goals as a home seller.
Opendoor offers speed, simplicity, and convenience, which is invaluable to some sellers since selling a home is such a high stakes, complex process.
On the other hand, you will probably get more money for your home if you list it on the open market with the help of a real estate agent.
Before you accept a cash offer, it's worth speaking with a realtor to find out how quickly they think your house would sell on the open market, and what it's worth.
Real Estate Agent or iBuyer?
Our team of experts can help you decide which option is best for you.