Opendoor makes selling a home easier than ever, offering unparalleled speed, convenience, and flexibility. But how much does this service cost and who qualifies? Read on to learn more.
As exciting as it is to sell your home and begin a new chapter, the actual selling process isn't exactly a walk in the park. There's enough minutiae, costs, time and energy spent, stress, and back and forth negotiations to almost make you reconsider selling your home at all.
But iBuyers like Opendoor have stepped in to provide a new selling model to address the time, effort, and stress that comes with a traditional sale.
Opendoor will pay a fair price for your home in all cash, allowing you to bypass working with an agent, finding a buyer, having to make repairs, showing the house, or negotiating.
In exchange for this streamlined service, Opendoor charges a fee of 5%, which is similar to the standard commission fee agents charge in a traditional real estate transaction.
So is Opendoor worth it? That depends on your specific situation and priorities. Read on to learn more.
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Is Opendoor worth it?
One of the biggest players in the iBuyer market, Opendoor makes an enticing offer for sellers — speed, convenience, and simplicity.
To sell your home with Opendoor, you simply submit information and photos of your home via their website. If you qualify, they'll reply with a preliminary cash offer on your home within 24 hours.
If you accept their offer, Opendoor will come out for an assessment looking for any needed repairs, which you can handle yourself, or they'll take care of for you (and deduct as "credits" from the final offer price). Finally, you pick your close date and — congratulations, you've sold your home!
That's far fewer steps than with a traditional sale. You don't have to worry about the buyer's financing falling through, buyer negotiations, prepping your home for open houses, or waiting weeks to close. Plus, the majority of your interaction is completely online.
All these perks Opendoor offers appeal especially to veterans, empty-nesters, those relocating for a job, or who have to sell their home quickly.
Additionally, Opendoor is tapping into the younger generation who appreciate the online convenience and transparent offers and fees.
Of course, this service does come at a cost. Opendoor charges a fee to offset the carrying costs (e.g., taxes, utilities, etc.) it assumes by purchasing your home outright. That said, the service fee is 5%, which isn't far off from the typical 6% realtor commission rate.
As such, if you qualify, selling to Opendoor is definitely an option worth considering.
Does Opendoor pay a fair price?
Yes, according to the experts, Opendoor pays a fair price for the homes it buys. Unlike a traditional house flipper, who buys low and sells high, Opendoor pays fair market value then relies on short-term market appreciation to generate a slim profit on each transaction.
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.
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.
Opendoor charges three types of fees:
- Service fee: currently 5%
- Repair costs: these may or may not be required
- 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.
The short answer is unfortunately no. You'll still be responsible for closing costs with expenses 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?
Opendoor has certainly stirred up the real estate industry benefiting both sellers and buyers by creating more options and opportunities for selling and buying a home.
If you're looking for speed, convenience, and simplicity, Opendoor may be the right choice for you.
Of course, selling your home is a complex, high-stakes decision. You need to ensure you're a) choosing the right option and b) getting the best possible price, given your priorities and circumstances.
For example, depending on your timeline, location, and property type, there's always a chance you could net more listing with a top agent on the open market. Before you pull the trigger on any cash offer, it's worth speaking to at least one or two local realtors to see if they might be able to help you get a better price.
The key takeaway is that there's no single right answer — the best approach for you will ultimately depend on your specific situation and goals. If you're currently weighing your options and trying to figure out how to sell fast without sacrificing sale price, Clever can help!
Our team of licensed real estate experts is standing by to answer questions, offer advice, and refer you to different services and solutions to fit your needs. Importantly, our referral service is 100% free and there's never an obligation to move forward with any of our recommendations.
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