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Does Opendoor negotiate with sellers?
The general consensus among home sellers we've spoken to is that Opendoor's offers are firm — apart from the possibility that the company might lower its final offer from the initial estimate.
“Their initial offer was somewhat closer to the $600,000 number. And then when they came back and gave me a final offer, it was, I think, $560,000 or something. So it was a significant jump,” homeowner Jesse Zappia told us via Zoom after selling his house to Opendoor in 2022.
“My understanding was that the offer was take it or leave it," Zappia continued. "I wasn't given any opportunity to negotiate, and I hadn't heard from anybody that they were successful in that route in the past.”
While Zappia's experience seems typical, there are a couple of situations that might give you some negotiating leverage with Opendoor.
1. You believe Opendoor missed something during its valuation process
If you believe Opendoor missed something important during its inspection and offer process that may affect your home value, you can reach out to your company rep to ask them to reconsider.
"We’re meticulous in our offer process, but we want to make sure we take into account all the things that make your home truly special," Opendoor says on its website. "If you think we’ve missed something in your offer, let your Opendoor Experience Partner know."
While we haven't come across any home sellers who have had success with this route, we have encountered a few who have seen their offers improve significantly after an initial offer expires.
"Yesterday, when I contacted them to ask if I can change my closing date, they said they would have to cancel my contract because too much time has gone by," reported a home seller on Reddit. "They said they would "refresh" the offer and run back thru the process of the virtual walkthru and everything to get me a new contract to sign to capture the additional time I need before I move. Shockingly, today they sent me a new preliminary offer that is over $20k higher than it was in January."
If your initial offer from Opendoor is disappointing, and you have some time to spare, waiting a few months and trying again may get you a different result.
2. A competing iBuyer offers you more money
The other scenario wherein Opendoor might reconsider its offer is if you bring it a competing offer from another iBuyer.
Competing iBuyers like Offerpad and Homeward operate in many of the same areas as Opendoor. If one an Opendoor competitor offers you more money for your house, you can potentially leverage the offer to get a higher offer from Opendoor.
For example, home seller Bradley Carpenter told us via Zoom that he was able to negotiate $3,000 off of Opendoor's repair estimate by showing them a competing offer from Offerpad.
Free services like Clever Offers make it easy to compare competing offers from iBuyers, investors, and more. There's no obligation to accept a cash offer, so it doesn't hurt to test the waters.
What is Opendoor's offer process?
To get an offer from Opendoor, you fill out an online form with basic details about your property. If your home is eligible, you receive an initial cash offer, usually within 24 hours.
Your final offer is contingent on a home inspection, the thoroughness of which can vary.
Bradley Carpenter, who sold his house to Opendoor in 2022, only had to submit photos of the rooms of his house. “They didn't do an interior inspection," he said. "They sent these three guys out and they just walked around the house, basically an exterior inspection.”
That said, Opendoor appears to have recently updated its selling terms to include a 30-minute in-person home inspection conducted by one of its reps.[1]
After the inspection, you receive your final cash offer. Opendoor's final offer which shows the amount Opendoor plans to deduct for repairs. It will also include Opendoor's service fee and a breakdown of your closing costs, which most sellers claim are pretty standard (ranging from 0.5–1%).
At this point, you can choose to accept Opendoor's offer or walk away without penalty.
If you choose to accept, you can choose your closing date within a 14–60 day window and work with Opendoor's reps and title company to complete the closing requirements.
Tips for negotiating with Opendoor as a seller
Although the odds are slim that Opendoor will raise its final offer, there are a couple of strategies that can improve your chances of negotiating a better deal.
- Know your home value. Having a clear idea of your home's fair market value can help you gauge the strength of Opendoor’s offer — and makes it easier to walk away if it's too far off the mark. Many agents are willing to provide a comparative market analysis (CMA) for free. A realtor might even inform you that Opendoor's offer is right in line with their suggested listing price, as is sometimes the case.
- Get competing offers. As a home seller, your best leverage against a low offer is to thoroughly explore your options. If one of Opendoor’s competitors offers you more money, Opendoor may match or even beat it.
- Use Opendoor's offer as a backup. Entertaining an offer from Opendoor doesn't have to be an either/or scenario. For home sellers wanting the least amount of hassle, agents will often start by shopping offers from iBuyers like Opendoor to show alongside a seller net sheet estimating their profit from an open market sale. That way, you have something to fall back on if your timeline changes or another offer falls through.
Does Opendoor negotiate with buyers?
Realtors we've spoken to express that Opendoor is unlikely to budge much on their list price — even if the home has been sitting a while on the market.
“We see a lot of them that seem to be really overpriced," says Barry Richards, a real estate broker in Tennessee, who has seen a number of Opendoor homes go up for sale in his area. "They don't tend to negotiate much…They seem to have a system of just dropping the price until they hit the sweet spot.”
"I convinced them to credit a buyer for a brand new roof like 2-3 years ago," said another realtor on Reddit. "They tend to not just accept lowball though — from what I have seen. They have the time and capital to let it sit until someone pays their price. They would rather slowly drop it and wait."
Customer insights from reviews and discussion forums also indicate that Opendoor is unlikely to negotiate with buyers on price.
"We have stayed firm on our price and they left our offer on the table today, said another Reddit user. "We offered 12K below listing price, it's been on the market for over 100 days."
While many buyers end up frustrated and simply give up trying to negotiate with Opendoor, others have been successful negotiating modest price reductions — particularly in the following scenarios.
1. The home has been sitting on the market for an extended period of time.
One situation that may put you in a position to negotiate with Opendoor is if a home has been on Opendoor's books for several months and experienced multiple price drops
"In my experience they start by barely budging off the asking price and then when you make it clear you are serious and will not pay more than X they will acquiesce" said realtor Lilly Rockwell on Reddit, in response to a buyer who wanted to make an offer for an Opendoor home that had been on the market for 100+ days.
"I forget the details on whether we had to totally walk away or we just got them down on price through normal negotiations," Rockwell continues, "but over 100 DOM days tells me they should say yes to your offer. I would stay firm and tell them 'Let us know if you change your mind.'”
But past customer experiences indicate that even if Opendoor budges slightly on price, you should be prepared for them to ask for something in return.
"I just bought a house from them two months ago. From the time they bought the house, there were a couple of price drops (50k in total) within 4 months. Then nothing. It sat for another 2 months until we offered 25k lower than asking at that time," a recent Reddit user shared. "They were willing to drop 5k but closing date within 2 weeks (as if they don’t want us to do inspections). We countered with 15k and closing at 4 weeks. Ended up settling at 10k below asking at 4 weeks closing.
2. The inspection report turns up significant repair work.
Some buyers have also had success negotiating repair concessions based on an inspection report — however, the negotiations were often lengthy and buyers were rarely able to get Opendoor to cover the full cost of repairs.
"Our inspector found $7000 worth of repairs needed, including electrical issues and plumbing issues," a home buyer shared via Google. At first OpenDoor did not want to negotiate the selling price at all to cover the cost of these repairs. They finally offered $1300 off the price. Both our title company and our agent was surprised they offered anything as they had never known them to compromise at all."
"House needed major upgrades (whole siding redone, old HVACs, old water heater, leaky septic tank, other “minor” cosmetics). Probably like $60k in contract work to be done," shared another buyer on Reddit. "We asked for 40k concessions. They offered 2k. We countered with 20k. They still said no and 2k was final. We said at least 8k for urgent repairs or we walk. They finally accepted close to the deadline.
Even with repair concessions, many customers who have bought from Opendoor remain disappointed with the condition of the home once they assume ownership. Multiple customer reviews mention discovering major issues after purchasing a home from Opendoor.
"Minor repairs were not completed, could have been simple fixes but company refused to fix issues," said home buyer Shaun T. on Google. "Three months in and had a major plumbing stoppage the following month and 20 year old water heater that should have been replaced broke after three months."
"After refusing to negotiate on price and not disclosing any issues on the house, we paid near the top of the appraised value for a house from the 70's and so far it's ended up having extensive severe termite damage, live termites, leaky pipes, and poorly installed new flooring that isn't level and is breaking apart," said Trustpilot user Traci T. "We're going to go bankrupt on it just to make it livable."
How Opendoor works for buyers
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.
When Opendoor receives your offer, it will either:
- Accept the offer
- Email a counteroffer
- Reject the offer
If Opendoor accepts your offer, you'll need to put down an earnest money deposit with the title and escrow company.
Then, you can schedule any desired inspections and try to renegotiate based on the report. Once you've agreed to all of the contract terms, you will work with your mortgage lender and preferred title company to complete the closing requirements.
The entire buying process can take anywhere from 14–45 days.
Tips for negotiating with Opendoor as a buyer
As a home buyer, the following levers may be helpful in your negotiations with Opendoor:
- Get a thorough inspection. Since Opendoor only owns the home for a brief period, they can claim ignorance on issues that a traditional homeowner would legally have to disclose. Additionally, many homes sit vacant on the market, which can lead to deferred maintenance issues. Before buying an Opendoor home, conduct thorough inspections and order a C.L.U.E. report, which will give you the history of insurance claims on a property.
- Look beyond the offer price. While Opendoor is perfectly willing to let a home sit on the market in order to collect their desired list price, you may also have leverage negotiating other aspects of the contract, such as repair credits and closing cost concessions. Like other home sellers, Opendoor is also generally willing to cover all or a portion of your agent's fees, so be sure to request that in your offer.
- Hire a top-notch agent. If you choose to go toe-to-toe with Opendoor as a buyer, be sure to find an agent who's willing to go to bat for you during negotiations. A good buyer's agent can tell you what chips you're holding and ensure you play your cards right — including guiding you through repair requests following an inspection.
- Know when to walk. If you're firm with your offer price and have the patience to stick it out through a lengthy negotiation, Opendoor may be willing to meet you halfway. However, you should never pay more for a house than you think it's worth or than you can reasonably afford with your budget.
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