Opendoor is the largest iBuyer now that its top competitor, Zillow Offers, has shut down. But you still have legitimate alternatives if you’re considering selling to an iBuyer.
What is Opendoor?
Opendoor is an iBuyer, a company that uses technology to make cash offers on homes in exchange for a service fee.
If you’re considering selling to an iBuyer, Opendoor is a good option. The company has several advantages over other iBuyers:
- Opendoor's 5% service fee is the lowest among top iBuyers.
- It generally pays more for homes.
- It has more positive online reviews.
- It's available in more areas.
Opendoor falls a little short of competitors like Offerpad when it comes to closing scheduling options. But this is really only a factor if you need to close in less than two weeks or extend your stay beyond two months.
If you want to compare offers, you can use a service like Clever Offers that makes it easy.
Clever can match you with an agent who'll request offers from Opendoor and its competitors to see who comes back with the best price and terms. Your Clever agent can also show you how much you could earn by listing your home, giving you all the info you need to take the next step.
Compare offers from Opendoor and other competitors to the sale price you'd get with an agent.
⚡️ Quick tips
- iBuyers won’t be an option for most people. They’re only available in a handful of U.S. cities and are very picky about the types of homes they’ll buy.
- Selling with an agent will likely net you more money. And you can save even more by working with a full-service discount brokerage.
- If you don’t qualify for an iBuyer sale but want to avoid the uncertainty or hassle of selling on the open market, consider a trade-in service like Knock or Orchard
- If speed is the number-one priority and you don’t qualify for an iBuyer purchase, consider a 'we buy houses for cash' company. You’ll take a sizable hit on price but can typically close in one to two weeks.
Which home selling approach is right for you?
Sell to an iBuyer
For sellers with eligible homes, iBuyers like Opendoor, Offerpad, and RedfinNow can be a simple, no-hassle alternative to a traditional, open-market home sale. However, you may sacrifice some money for this convenience, as selling on the open market usually (but not always) will earn you more money from your sale.
If your home meets an iBuyer’s purchase criteria, you’ll usually get an offer within 24–48 hours. Once you accept the offer, you can schedule your closing date as soon as a week or so — or request a closing date as far as three months away, depending upon your needs.
Before you close, the company will order a home inspection, often asking for a reduction in price based on necessary repairs. iBuyers also charge fees that are comparable to a traditional real estate agent. Opendoor fees, for example, are at a fixed 5% of the sales price.
The final offer will likely be less than you could get on the open market. iBuyers pay close to fair market value, but they also remove the competitive element of selling on the open market, which can result in multiple offers that bid your home price much higher than an iBuyer’s offer. But for some people, the certainty and convenience that iBuyers provide is worth leaving some money on the table.
Use a trade-in service
Trade-in services front you the cash to buy your new home before you sell your current one. You can avoid paying two mortgages at once and skip the stress of lining up the date of your sale with the closing date of your new home.
However, popular trade-in services like Orchard and Knock charge fees that could make your sale or new home purchase a bit more expensive. But, this cost may be worth it for people who have found their dream home, but aren’t able to make an offer until their own home sells.
List with an agent
When you list with a real estate agent you’ll have to pay realtor commission, but hiring a professional gives you the best chance to earn the maximum amount for your home on the open market.
Selling your home with a listing agent means you have to stage your home to prepare for showings and open houses. Agent fees, closing costs, and other fees add up to 7–10%. And there is no guarantee that your home will sell.
But working with real estate agents gives you access to their knowledge of the local market and buyer preferences. If you are confident that your home has what buyers are looking for and think you can get a good price for it, going the traditional route of selling with an agent may be right for you.
Our team of licensed real estate experts is standing by to answer questions, offer advice, and refer you to different services and solutions to fit your needs. Importantly, our referral service is 100% free and there's never an obligation to move forward with any of our recommendations.
A Clever agent can help you see what your home can earn on the open market and present you with offers from iBuyers like Opendoor, so you can be sure you've weighed all of your options before moving forward.
Compare offers from Opendoor and other competitors to the sale price you'd get with an agent.
Sell to a 'we buy houses for cash' company
Companies that buy houses for cash give fast cash offers on less than perfect homes. If your home doesn’t qualify for an iBuyer or trade-in service because of age, serious structural issues, or financial issues, a cash buyer like such as the well-known We Buy Ugly Houses could be right for you.
Cash buyers buy many different types of distressed homes, such as homes with foundation problems, houses in high-crime neighborhoods, foreclosed homes, and inherited houses in disrepair. An inspector will take a look at the home and then make an offer within 24–48 hours. You can close in as little as three weeks.
You can sell your home as is to a cash buyer and avoid home showings, agent commission, and negotiations with home buyers. You won’t pay service fees, repair credits, or closing costs.
However, a cash buyer’s offer for your home will be much less than fair market value. Cash buyers pay only about 55–65% of the home’s after-repair value. If your home has any selling potential, it might be worth talking to an agent before going to a cash buyer. But if the property requires extensive repairs just to get it ready for the market, a cash buyer might be the simplest solution.
Top Opendoor competitors
Opendoor is our number one iBuyer recommendation because it has a low fee of 5%, is more widely available than other iBuyers, and typically pays the most for houses.
Opendoor is the industry leader, buying more homes than any other iBuyer by a wide margin. Opendoor also has an average rating of 4.3 out of 5 stars and generally has more positive reviews than any other iBuyer.
However, there are a few Opendoor competitors, including other iBuyers as well as trade-in services and cash buyers.
Closing date window
Offerpad promises the certainty of a cash offer and a fast closing on a date you choose. Of all the iBuyers, Offerpad has the most flexibility when it comes to closing (8–60 days) and is liked by customers for its personalized customer service and perks like a free local move.
- There's a longer closing window compared to competitors.
- The late checkout option gives sellers up to three days to move out after closing.
- You can access additional services, such as free local moves within 50 miles.
- There's a 1% cancellation fee if you back out of the sale.
- It's not as widely available as competitors like Opendoor.
Offerpad is currently purchasing homes in 25 locations, including:
- AL: Birmingham
- AZ: Phoenix, Tucson
- CA: Riverside, Sacramento, San Bernardino
- CO: Colorado Springs, Denver, Fort Collins
- FL: Jacksonville, Orlando, Tampa
- GA: Atlanta
- IN: Fort Wayne, Indianapolis
- KS: Kansas City
- MO: Kansas City, St. Louis
- NV: Las Vegas
- NC: Charlotte (+ neighboring parts of SC), Raleigh
- OH: Columbus
- SC: Columbia
- TN: Nashville
- TX: Austin, Dallas-Fort Worth, Houston, San Antonio
As of August 17, 2022, Offerpad's average customer rating is 3.7 based on 319 reviews.
Offerpad comes in as a close second to Opendoor, with a slightly higher service fee of 6% and an overall positive rating of 3.7 out of 5 stars. Offerpad has a slightly more flexible closing date window than Opendoor, allowing sellers to choose a date between 8–60 days, compared to the 14–60 day window Opendoor provides.
But the biggest difference from Opendoor is Offerpad’s 1% cancellation fee for sellers who back out after the inspection has been completed. That’s a lot of money to pay only to start over!
Offerpad pays, on average, a little less for homes than Opendoor. And it's available in fewer markets: only 28 compared to Opendoor’s 50+.
Offerpad is a comparable real estate platform to Opendoor in many ways. If both companies are available in your area, you should get an offer from both to compare. Just remember to cancel your offer from Offerpad in time to avoid the cancellation fee.
Closing date window
Knock allows customers to purchase a new home before selling their old one. You'll sell on the open market with a traditional real estate agent. Knock will cover your old mortgage until your home sells — but you'll still eventually have to settle up, and costs can add up fast if your home sits on the market.
- You'll sell on the open market, potentially receiving offers above fair market value.
- You get a $35,000 advance for home repairs before selling.
- Compared to competitors, Knock accepts older homes (built after 1930).
- Fees can add up quickly if your home sits on the market.
- You'll have multiple points of contact rather than one dedicated agent.
- Buyers will need to be proactive and independent in their home search.
Knock is currently operating in select cities in these states: AZ, CA, CO, FL, GA, IL, MD, MI, MN, NC, OR, SC, TN, WA.
Knock's weighted average is 4.8/5 based on 738 reviews.
While Opendoor provides home buying, selling, and trade-in, Knock works only with trade-ins and buyers looking for financing for cash offers.
Knock’s home swap program lets you make a cash-backed offer on a new home before selling your old one. This allows you to bring cash to the table and avoid asking for any contingencies regarding the sale of your old home, making things simple for the sellers.
You can move into your new home while Knock will pay the mortgage and handle the repairs for your old home until it sells (up to 6 months). These costs (plus Knock’s 2% and $1,450 processing fee) will be deducted from the sale price of the old home.
Knock will buy your old home from you if it doesn’t sell on the open market.
The biggest difference between Opendoor and Knock is that Knock gives you the ability to sell on the open market for the best possible price. For its trade-in program, Opendoor buys your home just like it does with its iBuying program.
Closing date window
Orchard is a home trade-in service that allows you to purchase a new home by getting access to your current home's equity. You can then list your old home on the market with an Orchard listing agent.
If you need to move quickly but still want top dollar for your home, Orchard is worth considering. However, Orchard only accepts homes built between 1920 and 2020 and worth between $200,000 and $1 (or $1.5 million, depending on the market).
- You can use Orchard's Offer Boost program to make a cash offer on a new home.
- If your home doesn't sell in 120 days, you can accept Orchard's guaranteed cash offer.
- Homes must be relatively new compared to what competitors accept (built after 1972 vs. 1930–1960).
- Orchard's cash offers will likely be much lower than what you could sell for on the open market.
Orchard is currently operating in these locations:
- CO: Denver
- GA: Atlanta
- TX: Austin, Dallas–Fort Worth, Houston, San Antonio
As of August 17, 2022, Orchard's average customer rating is 4.8/5 based on 361 reviews.
- Trustpilot: 4.8/5 (3.67/5 (12 reviews)
Opendoor will buy your home outright for a fee, but Orchard is geared toward home trade-ins and listed selling. Like Knock, Orchard allows you to sell your home on the open market, potentially netting bigger offers.
Orchard’s trade-in program, Move First, allows you to use the equity in your current home to buy a new one without selling yet. After an assessment, Orchard will lend you an equity advance to buy a new home and cover your old home’s mortgage payments. You can move in right away while Orchard works to sell your old home.
Orchard will take care of repairs and staging for your old home. An Orchard agent will be your listing agent for that home. Once your old home sells, you get the title to the new one.
You’ll get the profits from the sale of your old home, but Orchard will deduct overlapping mortgage payments, expenses, and its 6% brokerage fee. If you use Move First to buy before you sell, you’ll also have to pay a $2,900 fee.
Currently, Orchard only operates in 6 metropolitan areas in Colorado, Georgia, and Texas.
We Buy Ugly Houses
We Buy Ugly HousesFull review
Time to offer
Minimum closing time
We Buy Ugly Houses has a better reputation than most individual cash buyers, but your experience can vary based on the quality of the local franchise. While We Buy Ugly Houses can close in as little as three weeks, it pays far less than fair market value.
- Trusted, nationally recognized brand
- No need to worry about repairs
- Close in just three weeks
- Quality of service may vary between franchises
- Pays far less than fair market value
We Buy Ugly Houses has over 800 independently owned and operated franchises across 47 states and Washington, DC.
As of October 2022, We Buy Ugly Houses's parent company, Homevestors, has an A+ rating on the Better Business Bureau. No other third-party reviews are available at this time.
This rating is based on overall national data. Research local franchises for specific reviews that reflect their quality of service.
- Website: webuyuglyhouses.com
- Phone: (866) 288-9516
If your home has serious structural issues or other major problems that make it ineligible for an iBuyer or home trade-in service, a cash buyer like We Buy Ugly Houses is an option worth considering.
An inspector will take a look at the home and then make an offer within 24–48 hours. You can close in as little as 3 weeks. You won’t have to worry about any fees, closing costs, or repair costs.
We Buy Ugly Houses is widely available — it has franchises in over 1,100 locations across the U.S. — but in some locations different franchises may actually be competing with each other. Also, the quality of service may vary from region to region and franchise to franchise, so be sure to search for franchise-specific reviews when doing your research.
The biggest drawback is the deep cut in the price: you may get as little as half of the home’s value. But there are many situations in which sellers are motivated to sell the house for whatever they can instead of investing in repairs: inheriting a home with a crumbling foundation, for example.
There are more companies that buy houses for cash than just We Buy Ugly Houses. Check out our reviews of the best companies that buy houses for cash to take a deeper look at the competition.
Top FAQ about Opendoor competitors
Is Opendoor too good to be true?
Opendoor streamlines the traditional home-selling experience, eliminating the need for home showings, negotiations with buyers, and the uncertainty of whether your home will sell. It does this for a 5% fee (on top of closing costs and repair credits), which many people think is worth it. However, you’ll almost always make more money by selling your home with a realtor on the open market. Find out more about how Opendoor works.
What’s the difference between Opendoor and Redfin?
Opendoor is an iBuyer, a company that uses technology to make cash offers on houses. Redfin is a discount real estate brokerage, a company that offers lower commission fees. Redfin used to offer iBuying services through RedfinNow, which operated similarly to Opendoor. However, RedfinNow shut down on November 9, 2022.
Are Opendoor and Offerpad the same company?
No. Opendoor and Offerpad are two distinct companies that offer similar iBuying services. Both companies give sellers a fast cash offer on their home and the ability to close on a flexible timeline. But Opendoor charges a lower service fee (5% vs. 6%), generally pays more for homes, and is available in more markets. See how Opendoor and Offerpad compare.
Does Opendoor pay market value?
Not quite. Opendoor pays close to (but a little less than) what you would expect to get from a sale on the open market. Like other iBuyers, Opendoor has a narrow margin on each transaction, but the company buys and sells at an incredibly high volume. Its business model depends on sellers willing to pay for the convenience of a quick sale. Learn more about Opendoor's costs.