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.
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
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.
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.
💼 Negotiating tips for sellers
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.