Is Opendoor worth it? | Does Opendoor pay a fair price? | Pros and cons | Should you sell to Opendoor? | FAQ
Key takeaways:
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Opendoor is an iBuyer, which means it makes all-cash offers on houses and provides flexible closing timelines. Opendoor often pays less than sellers would get on the open market, and it charges a 5% service fee.
Compared to other iBuyers, Opendoor has reasonable service fees and is more widely available. But competitors like Offerpad provide more flexibility on closing dates and repairs. Like all iBuyers, Opendoor is making lower offers on homes than it used to because of the slowing housing market
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.
Is Opendoor worth it?
Opendoor is definitely worth looking into if you need to sell your home quickly with minimal hassle.
That said, it's unlikely that Opendoor will pay you as much as you'd 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.
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, typically 15–45 days after you accept the offer. | You have no control over the cost of repairs. |
| Customer service is easy to reach and good at answering questions. | There's very little room to negotiate. |
| There's no fee for cancellation before closing. | The 5% fee may be more costly than a commission with a discount broker. |
How to evaluate Opendoor's offer
Opendoor's offers are valid for seven days. If you're considering an Opendoor offer, we strongly recommend using that time to weigh your options.
If other iBuyers are in your area, get offers from them to compare to Opendoor's. You can also consult a local real estate agent who can perform a comparative market analysis on your home. This analysis gives you an idea of how much your home might get on the open market, so you can decide the best way to sell.
Compare up to 10 cash offers from trusted home buyers in your area, plus get an expert's opinion of your home's fair market value. Clever Offers is free, and there's no obligation to move forward with an offer. Simply tell us about your selling situation, and we'll do everything we can to get you the best possible offer on your home.
Does Opendoor pay a fair price?
Opendoor pays less than what you'd get on the open market with a real estate agent. The company used to make competitive offers on homes, but its offers have declined since 2022. According to real estate analyst Mike DelPrete, one home’s initial cash offer of $538,300 was nearly $50,000 lower than Zillow's estimate of the home's worth.
Plus, Opendoor often significantly lowers its initial cash offer after it inspects a home and determines repair costs.
For example, one Reddit user said this about getting an offer from Opendoor: “Initial offer $750k. Did video walkthrough and physical walkthrough. Final offer $640k, and $30k in repairs on top of that.” This example is one of many similar experiences we found.
Does Opendoor negotiate?
Opendoor typically doesn't negotiate its offers or fees. As Jesse Zappia, a homeowner who sold to Opendoor, told us, the offer “was take it or leave it. I wasn't given any opportunity to negotiate.”
If you don't agree with Opendoor’s assessment or you think it overlooked something, you can request a second evaluation and submit evidence to support a higher offer. However, it’s unlikely Opendoor will revise its offer by much unless it missed something important during its initial evaluation.
Hiring a realtor may help you negotiate with Opendoor or prevent a deal from falling through.
For example, one seller accepted an offer from Opendoor and hired Rebecca Richards, a realtor with EXIT Realty Garden Gate Team in White House, Tennessee. Richards says, “We signed off that day, but then the next day, after they had their truck halfway loaded and already had an accepted offer on a property up north ... , we got the word [from Opendoor] that now the deal is dead.”
Fortunately, Richards was able to help her client by offering Opendoor a lower purchase price, which Opendoor accepted.
» LEARN: Tips for negotiating with Opendoor
How much are Opendoor's fees?
Opendoor charges three types of fees:
- Service fee: 5%
- Repair costs: 1–2% (these may or may not be required)
- Closing costs: 1–3% (these are typical seller closing costs)
Opendoor doesn't give you the option to use your own contractor for repairs, so you can't control the costs of repairs.
| ✍ Editor’s note: You might not make as much money selling your house through Opendoor as you would selling on the open market, even though the total costs with Opendoor (approximately 10%) are lower than with a traditional sale (approximately 11.2%). Opendoor generally pays less for homes than you'd get on the open market because it aims to resell each house quickly for a profit. |
Opendoor’s fees add up to 10% of the sale price. Closing costs and repair costs 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, repairs, and closing costs make up the majority of the costs.
Opendoor’s 5% service fee is lower than the 6% its main competitor, Offerpad, charges. Offerpad also charges a 1% cancellation fee, while Opendoor doesn’t charge a fee if you cancel.
Does Opendoor pay closing costs?
No, you'll still be responsible for closing costs that are on par with a traditional sale.
You'll be expected to cover expenses such as title insurance, escrow costs, recording fees, notarization, transfer taxes, and more. In total, your closing costs will add up to 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 it can close in as few as 15 days. That's much faster than the average time to close on a traditional sale, which is 86 days as of 3/1/2024.
In other words, Opendoor's speed is a major advantage over the traditional home-selling model.
The benefit of Opendoor’s quick closing times isn't just speed for speed’s sake. In real estate, time really is money.
The time between reaching an agreement and closing a sale is often a difficult period when appraisals and contingencies can jeopardize a traditional sale. And as you wait to close, you still have to pay carrying costs — like your mortgage, insurance, and maintenance expenses.
Should you sell to Opendoor?
There's no universal answer — it depends on your situation and goals as a home seller.
Opendoor offers speed, simplicity, and convenience. These factors are invaluable to some sellers, especially 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 a real estate agent.
A Clever agent can run the numbers for you, making it easier to determine which way to sell is best for you.
FAQ about Opendoor
Are Opendoor's cash offers legit?
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 15 days. Read our full Opendoor review to learn more!
How much will Opendoor pay for my house?
Opendoor typically pays much less than what your house would sell for on the open market, and it usually won’t negotiate. Since you have no obligation to accept an Opendoor offer, you can walk away if you decide it's not worth it.
Is Opendoor too good to be true?
Opendoor has a lot of pros compared to other iBuyers. It has reasonable fees (a 5% service fee) and operates in more markets 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.
Is an Opendoor offer guaranteed?
For sellers: The all-cash offer is unlikely to fall through, although it's not guaranteed. Some reviews mention Opendoor canceling offers at the last minute, leaving sellers in difficult situations..
For buyers: 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.
Are there any lawsuits against Opendoor?
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.
Does Opendoor pay closing costs for the buyer?
Opendoor doesn't pay closing costs for the buyer or the seller. Learn more about how closing costs work with Opendoor.
