Can You Negotiate with Opendoor?

Jamie Ayers

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Jamie Ayers

December 3rd, 2021
Updated December 3rd, 2021

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Can you negotiate with Opendoor? | Home buyers | Home sellers | FAQs

🔑 Key takeaways:
  • Opendoor rarely negotiates with customers.
  • If you're buying a home from Opendoor, it's best to have a real estate agent who can give you a professional opinion on the price and negotiate on your behalf.
  • If you're selling to Opendoor, it's unlikely you'll get Opendoor to increase its offer. However, you can ask the company to reassess your home if you believe it missed features that could affect the home's value.

Can you negotiate with Opendoor?

When you sell your home to Opendoor, there may be some wiggle room to negotiate — but don't expect any major changes. Opendoor only negotiates the final sale price of the home and the cost of repairs.

If Opendoor overlooks a detail that might significantly impact its assessment of your home's value, like an updated kitchen or the home's overall size, you may be able to get a higher offer.

Opendoor also charges all home sellers a non-negotiable 5% service fee to offset its costs and ensure the company makes money on each home purchase.

When you buy a home from Opendoor, there may be some wiggle room on price.

Opendoor doesn't want to own houses for too long because carrying costs — expenses like electricity and property taxes — only go up the longer Opendoor owns a house. In other words, the company is motivated to resell houses quickly.

However, Opendoor operates in competitive markets and carefully purchases houses with the most resale potential, so it has a lot more leverage than you do at the negotiating table. If Opendoor doesn't accept your offer, it's probably because there's a good chance someone else will make a better one.

Negotiating with Opendoor as a buyer

As a buyer, you can submit an offer to Opendoor directly or through your real estate agent.

You need to be pre-approved for financing from a mortgage lender before submitting an offer. This isn’t typically required when buying from a regular seller, although it can still be advantageous.

Opendoor will negotiate closing costs with buyers and may even offer concessions to help the buyer cover some of their expenses before the deal is finalized.

When Opendoor receives your offer, it will either:

  • Accept the offer
  • Email a counteroffer
  • Reject the offer

If Opendoor flat-out rejects your offer, it will let you know why the offer was rejected.

It’s important to remember that Opendoor will be more flexible on the closing date than the typical home seller since Opendoor isn’t living in or preparing to move out of the home.

How to negotiate with Opendoor as a buyer

Negotiating with Opendoor as a buyer isn’t like negotiating with a regular seller. Opendoor’s list prices are based on the price the company paid to acquire the home, repair costs, carrying costs, comparable sales in the same neighborhood, and input from local pricing experts.[1]

Opendoor's business model doesn't leave much room for buyers to negotiate, but working with a local real estate agent can give you a leg up. A realtor can tell you:

  • If the list price is fair. Local agents know the market conditions and what the home’s features are worth. This information will help you decide if you want to make an offer or keep shopping for a house.
  • If any factors indicate you should offer below the listing price. These might include the home sitting on the market for longer than the local average selling time or necessary repairs that could help you negotiate a discounted price.

Experienced buyer's agents are skilled negotiators who can protect your best interests when you're purchasing a home, even if you're buying a house from an iBuyer.

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Negotiating with Opendoor as a seller

Opendoor negotiates with sellers in extremely limited circumstances. There are two situations where you might be able to get Opendoor to budge.

1. Opendoor's incorrect about or unaware of certain features in your home

When Opendoor makes an offer, it includes a detailed explanation of how it arrived at its number. If there’s an error — like an incorrect number of bathrooms or a finished basement marked unfinished — bring it to the attention of your Opendoor representative. The company will reassess and potentially offer more money.

2. A competing iBuyer offers you more money

Other iBuyers, like Offerpad and RedfinNow, operate in many of the same areas as Opendoor. You can request free, no-obligation offers from all of them. If one of Opendoor's competitors offers you more money, you can potentially leverage the offer to get a higher offer from Opendoor.

How to negotiate with Opendoor as a seller

Though the odds are slim that Opendoor will raise its offer, you can improve your chances when you're negotiating by:

  • Providing Opendoor with receipts for renovations and repairs. Proof of improvements you’ve made to your home increase the chance that Opendoor will raise its offer.
  • Requesting offers from other iBuyers in your area. You should get free, no-obligation offers from all the iBuyers in your area. If one of Opendoor’s competitors, like Offerpad or RedfinNow, offers you more money, Opendoor may match or even beat it.
  • Getting a comparative market analysis (CMA) done on your home. An agent can perform one for free. Knowing what your home could get on the open market gives you a sense of the strength of Opendoor’s offer.

Get a free comparative market analysis from an agent!

If you’re interested in selling, a real estate agent can provide you with a comparative market analysis (CMA) to help you determine what your home is worth. A free, no-obligation CMA is a great way to compare your Opendoor offer with what your house might be worth on the open market.

Connect with an agent and get a free CMA today!

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