Is Opendoor Worth It? What You Need to Know

Andrew Whytock

By 

Andrew Whytock

August 19th, 2022
Updated August 19th, 2022

SHARE

Opendoor is an iBuyer, which means it makes all-cash offers on houses with flexible closing timelines. Opendoor often pays less for homes than sellers would get on the open market and charges a 5% service fee.

Compared to other iBuyers, Opendoor has reasonable fees and tends to make higher offers on houses.[1] But competitors like Offerpad provide more flexibility on closing dates and repairs.

Opendoor is a great option for sellers who need to sell quickly to a proven buyer. But for sellers who prioritize getting the highest dollar amount for their home — and who have the time to wait for a higher offer — selling with a full-service real estate agent might be a better choice.

If you're considering an Opendoor offer, we strongly recommend using Clever Offers to request additional quotes from other iBuyers before you make a decision. You'll be matched with a top local agent who can provide offers from companies like Opendoor and others that pay cash for homes in your area.

Your Clever agent can compare these offers to a competitive listing price, giving you the knowledge you need to make the best decision.

Key takeaways:
  • Opendoor is worth it if selling your home quickly is more important than selling for top dollar.
  • Like other iBuyers, Opendoor will likely pay less for your home than you would get on the open market.
  • Opendoor charges a 5% service fee to sellers.
  • Offerpad, Opendoor's main competitor, tends to make slightly lower offers but has similar fees and more flexibility on closing dates and repairs.

Is Opendoor worth it?

If you're in a rush and need to sell your home quickly with minimal hassle, Opendoor is definitely worth looking into.

That said, it's unlikely that Opendoor will pay you as much as you'd be able to get on the open market. Like most iBuyers, Opendoor makes lower offers than market value. It also charges a 5% service fee which will limit your overall profits.

Sellers who want to keep more of their home's equity in their pocket should consider listing on the open market with a full-service real estate agent from a discount brand.

Real estate agents generally charge 6% of the sale price when a home sells, but Clever Real Estate can match you with a top local realtor who charges a listing commission of just 1%, saving you thousands of dollars in commission when you sell your home!

💰 Find a top agent, save thousands in listing fees!

Pros and cons of selling to Opendoor

Pros ✅
Cons ❌
If Opendoor is interested in your home, you’ll receive an offer within 24 hours.
You’re not likely to sell your home for as much as you would get on the open market.
The sale can close on your timeline, anywhere between 14–60 days after the offer is accepted.
You have no control over the cost of repairs.
Guaranteed all-cash offers mean there's no risk of the deal unexpectedly falling through.
There's very little room to negotiate with Opendoor.
There's no fee for cancellation before closing.
The 5% fee may be more costly than a commission with a discount broker.

Comparing Opendoor offers

An offer from Opendoor is valid for seven days. You can use that time to compare their offer to other potential options.

If there are other iBuyers in your area, get offers from them to compare. You can also consult with a local real estate agent who can perform a comparative market analysis on your home to give you an idea of what your home might get on the open market.

Does Opendoor pay a fair price?

Yes, according to an industry insider, Opendoor pays a fair price for homes. Real estate tech strategist Mike DelPrete found that in 2021 Opendoor consistently paid more for homes than its competitors in Phoenix, the largest iBuyer market in the U.S. [1]

Opendoor isn't a house flipper and doesn’t seek out undervalued properties. It pays close to fair market prices. This means in sellers markets, where there are more buyers than homes to buy, Opendoor will make even more competitive offers.

The best way to find out whether Opendoor’s price for your home is fair is by comparing its offer with a professional home valuation from an experienced real estate agent. By doing this, you can see whether Opendoor's price is fair — or if you could sell for more money on the open market.

Does Opendoor negotiate?

Opendoor typically doesn't negotiate its 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 its final pricing.

» LEARN: Tips for negotiating with Opendoor.

How much are Opendoor's fees?

Opendoor charges three types of fees:

  1. Service fee: currently 5%

  2. Repair costs: these may or may not be required (1–2%)

  3. Closing costs: you'll pay typical seller closing costs (1–3%)

Opendoor does not give you the option to use your own contractor for repairs, so these costs are impossible for you to control.

Editor’s note: You might not make as much money selling your house through Opendoor, even though the total cost (approximately 10%) is lower than a traditional sale (approximately 11.2%). Opendoor generally pays less for homes than you would get on the open market because the company's goal is to resell each house quickly and make a profit.

Here's a comparison of what you can expect to net from Opendoor, assuming you pay on the higher end of estimated fees, versus what you can expect to net from a traditional sale.

Sale price
Opendoor net
Full-service agent net
$200,000
$180,000
$177,600
$300,000
$270,000
$266,400
$400,000
$360,000
$355,200

Opendoor’s fees add up to 10% of the sale price. Closing costs and repair costs will vary by sale.

Homeowners pay 11.2% on average to sell their home, according to our research and analysis of real estate industry data. Commissions for the brokers and agents involved in the sale, repairs, and closing costs make up the majority of the costs.

Opendoor’s competitor Offerpad charges similar fees to Opendoor but, according to experts, it pays less (on average) for homes.[1]

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 to between 1–3% of the sales price.

» MORE: Opendoor vs. Offerpad: Which is better?

How quickly will I sell my home with Opendoor?

Opendoor can make an offer on your home in less than 24 hours and can close in as few as 14 days. That's quite a bit faster than it would take the average homeowner to get to the closing table. As of August 2022, it takes an average of 77 days for the home-selling process to run its course.

In other words, Opendoor truly distinguishes itself from the full-service agent home-selling model when it comes to speed.

The benefit of Opendoor’s quick closing times is not just speed for speed’s sake; in real estate, time really is money. The time between when an agreement is reached and a sale closes is an often difficult period where appraisals and contingencies can jeopardize a traditional sale.

As most homeowners know, owning their property isn’t free. Carrying costs — like your mortgage, insurance, and maintenance costs — don’t disappear while you’re selling.

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 may get more money for your home if you list it on the open market with the help of a real estate agent.

A Clever agent can run the numbers for you, making it easier to determine which way is best for you.

FAQs about Opendoor


Yes, Opendoor is a legitimate company. Although Opendoor may not pay your home's full market value, it makes all-cash offers that allow you to close on your sale in as few as 14 days. Read our full Opendoor review to learn more!


Opendoor typically pays slightly less than what your house would likely sell for on the open market. Unfortunately, Opendoor usually won’t negotiate — you have to accept its price or walk away. But, since you can request an Opendoor offer with no obligation, you can reject the offer if you decide it's not worth it.

Opendoor has a lot of pros compared to other iBuyers. It has reasonable fees (a 5% service fee) and often makes higher offers than other cash buyers. However, Opendoor could be considered too good to be true due to its drawbacks. When you sell with this company, there's very little room to negotiate, and you'll likely receive less money than you would by selling your home on the open market.

Opendoor offers a 90-day buyback guarantee which allows you to return a home that you purchased under certain conditions. If your home qualifies, you'll need to pay a 3% return fee, and Opendoor will refund the purchase price of your home minus any seller concessions, commission refunds, and repair costs.

Opendoor faced disciplinary action from the North Carolina Real Estate Commission in March 2022 due to broker misconduct in three different residential transactions. According to the commission, Opendoor brokers failed to disclose outstanding issues on the properties and in some cases, falsely advertised certain features of the homes. The commission gave Opendoor 18 months of probation, along with 12 months probation to the two brokers involved in the violations.

In August 2022, the Federal Trade Commission took action against Opendoor for "cheating potential home sellers by tricking them into thinking they could make more money selling their home to Opendoor than on the open market" with a realtor. As part of its FTC settlement, Opendoor agreed to pay a $62 million fine.

Opendoor does not pay closing costs on behalf of the buyer or seller. Learn more about how closing costs work with Opendoor.

Related articles

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.