Can you negotiate with Opendoor? | Home buyers | Home sellers | FAQ
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Does Opendoor negotiate with sellers?
When you sell your home to Opendoor, there's very little room to negotiate. Its offers are usually final, though in exceptional circumstances it may revise its proposed purchase price.
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. This service fee is on top of closing costs and deductions for repairs, which are also typically non-negotiable.
We recommend using Opendoor's offer as a baseline to compare with other options
An offer from Opendoor is valid for seven days. We strongly recommend using that time to weigh a variety of options.
If other iBuyers are in your area, you can get offers from them to compare to Opendoor's. You can also consult a local real estate agent who will perform a comparative market analysis on your home. This analysis will give you an idea of what your home might be worth on the open market, so you can decide the best way to sell.
Does Opendoor negotiate with buyers?
Opendoor generally doesn’t negotiate with buyers. Reviews of Opendoor often mention how inflexible the company is on its list price. Since Opendoor is a large corporation, it can hold onto a house for a long period of time until it gets the price it wants.
Barry Richards, Principal Broker at EXIT Realty Garden Gate Team in Springfield, Tenessee, says this about Opendoor homes for sale: “We see a lot of them that seem to be really overpriced. They seem to just have a system of … dropping the price until they hit the sweet spot. ... They don't tend to negotiate much on whatever current price they have.”
In other words, instead of negotiating with buyers, Opendoor tends to stick with its list price. If it doesn't get any offers close to the asking price, it slowly lowers the price until it reaches a point a buyer is willing to pay.
Negotiating with Opendoor as a seller
Opendoor negotiates with sellers in extremely limited circumstances. There are three 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, 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.
3. You get an agent to negotiate for you
The most likely way to successfully negotiate with Opendoor is to let a real estate agent take charge. Agents are experienced negotiators and they have access to MLS data that'll give you the most accurate picture of what your home is really worth.
An agent can also help you negotiate with Opendoor if your deal is in danger of falling through. Without an agent, you might not know how to react and may just accept Opendoor’s threat to walk away. With an agent, you have a better chance of saving the deal.
For example, Rebecca Richards, a realtor with EXIT Realty Garden Gate Team in White House, Tennessee, had clients who accepted an offer from Opendoor, only to learn at the last minute that Opendoor canceled the contract. She says, “The solution was to come off the price $5,000 and, lo and behold, [Opendoor] bought it then.”
By suggesting a lower sale price, Richards and her clients worked together to save the deal.
Clever can connect you with local top agents from major brokerages like RE/MAX and Keller Williams who will help you get the highest possible cash offer OR list your home on the open market if you aren't satisfied.
Connect with a local agent and compare offers from Opendoor and other top cash buyers to the sale price you'd get on the open market.
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 and use it to negotiate with Opendoor. Knowing what your home could get on the open market gives you a sense of the strength of Opendoor’s offer.
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.
When Opendoor receives your offer, it will either:
- Accept the offer
- Email a counteroffer
- Reject the offer
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.
Opendoor's business model doesn't leave much room for buyers to negotiate. As Jesse Zappia, who sold his home to Opendoor, told us, “My understanding was [that its offer] was take it or leave it. I wasn't given any opportunity to negotiate that. I had not heard from anybody that they were successful in that route in the past.”
However, working with a local real estate agent can give you a leg up when dealing with iBuyers like Opendoor. 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.
Why leave extra money on the table? Clever connects you with top real estate agents in your area, plus puts cash back in your pocket.
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FAQ
Does Opendoor negotiate with sellers?
Sellers can try negotiating with Opendoor, but the company rarely raises its offer. You can ask Opendoor to reevaluate your home if you feel that it has overlooked anything important, like recent upgrades that may increase your home's value. Learn more about how to negotiate with Opendoor.
Does Opendoor negotiate with buyers?
Opendoor rarely negotiates with buyers. Unlike regular sellers, Opendoor has the resources to hold onto a home for a long period of time until it finds a buyer willing to pay its list price. In some cases, working with a local real estate agent can help you negotiate. Learn more about negotiating with Opendoor as a buyer.
Does Opendoor perform an inspection?
Once Opendoor makes an offer on your home, it schedules a time for you to do a video walkthrough. Opendoor also sends someone to evaluate the exterior of the home and quickly check the interior.
A few days after the inspection, Opendoor sends you its final offer with estimated repair costs.
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