Can You Negotiate with Opendoor?

Jamie Ayers

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Jamie Ayers

February 8th, 2021
Updated February 8th, 2021

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

Opendoor's real estate model is two-fold: they buy homes from homeowners and then sell them for a profit. Because Opendoor operates on a high volume, low margin business model, they have limited room to negotiate.

Can You Negotiate with Opendoor?

Opendoor charges a service fee to offset its carrying costs and ensure profitability. Currently, the fee is 3.5-5% which is comparable to the traditional 6% real estate agents charge.

This service fee isn’t negotiable, but there is some room for buyers and sellers to negotiate on things like repairs.

Can you negotiate with Opendoor?

Yes, you can negotiate with Opendoor. Just remember that Opendoor is in the business of making money by buying and selling homes, so they might not be able to negotiate as much as you hope.

For sellers, negotiation is limited to the final sale price of the home and the cost of repairs.

The service fee is set by Opendoor, so this cost isn’t up for negotiation. This fee ranges from 3.5-5%, depending on the market.

If you're buying a home from Opendoor, you have more flexibility to negotiate as you’re able to submit an offer and receive counteroffers.

Negotiating with Opendoor as a buyer

As a buyer, you can submit an offer to Opendoor directly or through your real estate agent, just like you would in a normal transaction.

You need to be pre-approved for financing from a mortgage lender before submitting an offer. This isn’t typically required in a normal purchase, 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, they will either:

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

If Opendoor flat out rejects your offer, they’ll provide feedback in case you want to 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.

💼 Negotiating tips for buyers
  • Ask your real estate agent for a comparative market analysis (CMA) on the property to see how it stacks up against Opendoor’s asking price.
  • Find out how long the property has been listed for. If it’s been on the market for over 25 days, (the national average selling time) Opendoor might be willing to lower the price.[1]
  • Let your real estate agent do the negotiating. Given their experience, they’ll know the best way to approach a seller and put together an offer that is attractive to both sides.
  • If Opendoor won’t reduce the price of the home, ask them to cover the cost of any additional repairs that you want to be completed before closing.

Negotiating with Opendoor as a seller

Sellers don’t have much room to negotiate with Opendoor on the final sale price of their home. That’s because Opendoor’s offer is based on repair costs, their projected carrying costs, local comparisons, and input from local pricing experts.[2]

Essentially, Opendoor needs to purchase your house at a price that gives them enough room for a profit margin.

However, you can request that Opendoor reassesses your property if you feel that their repair costs are too high, or if you think that recent upgrades or renovations have been overlooked.

If Opendoor feels that the price you want for your home is more than they’d be able to pay, they might recommend that you try listing your home on the open market with an Opendoor agent.

There’s no penalty for declining an offer, so it’s worth going through the steps and finding out what Opendoor would be willing to pay for your house.

» Click here to get a free, no-obligation offer from Opendoor.

💼 Negotiating tips for sellers
  • Provide Opendoor with receipts for any recent home renovations that you’ve done to prove their value.
  • Get a comparative market analysis from your agent so you have something to compare Opendoor’s offer to.
  • Be prepared to try listing your home on the open market if Opendoor’s best offer isn’t acceptable to you.

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!

Does Opendoor perform an inspection?

Within as little as 24 hours of you submitting a request for an offer online, Opendoor will send an inspector to walk through your home and identify anything that might need to be repaired.

The final offer that you receive from Opendoor will include a detailed list of repairs that need to be made and line item deductions from the sale price based on the estimated repair costs.

Be as accurate as possible when it comes to describing the condition of your home on the estimate form. Any problem areas that you neglect to mention could be discovered by the inspector and reduce the amount of Opendoor’s final offer.

» READ: Our full review of Opendoor.

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