As the nation's largest iBuyer, Opendoor operates in major cities across the U.S. and purchases about 3x as many homes per year as its next closest competitor.
For home sellers looking for minimal hassle, Opendoor's cash offer allows you to skip repairs and showings, and sell on your timeline. In exchange for an easy sale, the company typically pays less than the market value, charges a 5% service fee, and deducts a considerable amount of money for repairs.
If you want to avoid the traditional listing process, and don't mind sacrificing some potential profit to do it, Opendoor's is worth considering.
- Requesting an offer is free, and you're under no obligation to accept it. Just be sure to compare their offer alongside other top-ranking competitors.
If you want to avoid repairs without sacrificing your bottom line, you're likely better off selling your house as is to a traditional buyer.
- Our analysis of more than 200 homes bought and sold by Opendoor over the past year found that the company resells homes for an average $23,000 more than it pays — that's a lot of equity to give away, especially on top of service and repair charges.
- Moreover, iBuyer purchases represent less than 0.5% of home sales in the U.S[1] — meaning that the overwhelming majority of sellers find a better deal on the open market.
If you're on the fence about which route to choose, we recommend starting with Clever Offers.
With Clever Offers, you get the best of both worlds. You can compare instant cash offers worth up to 100% of your home's value. You can also test the waters with a no-obligation 7-day MLS listing, allowing you to sell as is for the highest possible price. Answer a few quick questions and start comparing offers.
Top Opendoor competitors
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Clever Offers helps you find and compare offers from leading cash buyers in your area — all with a proven track record of ethical dealings with home sellers.
Because Clever's network includes local/national investors, iBuyers, and agents with experience listing homes as is, you get a range of offers to choose from — including alternative deal types that deliver a higher payout over time.
The 5-star rated company gets top marks for helping you make an informed decision without pressuring you to move forward. See our full Clever Offers review.
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As an iBuyer, Offerpad stands out for its perks, including free local moves and a 3-day grace period to wrap up your move after closing.
You can choose between listing with an agent and getting a cash advance for home prep/repairs or taking a competitive cash offer with flexible closing dates, ranging from 8–90 days.
If you accept a cash offer, be prepared for relatively high repair costs — which customers report can substantially reduce your final offer. See our full Offerpad review.
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Knock's Bridge Loan lets you borrow against the equity in your current house to buy a new home before you sell.
The loan covers your down payment, moving expenses, home prep costs (like minor repairs and staging), and ongoing mortgage payments while your house is being listed. You can also borrow up to $35,000 for home improvements before listing.
If your current home doesn’t sell within six months, you have a guaranteed cash offer to fall back on, worth about ~80% of your home's market value. See our full Knock review
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Homeward is a solid choice if you want the benefits of a fast cash offer without sacrificing your home equity — or need to unlock the equity in your current house to buy a new one.
While most cash buyers aim to buy low in order to sell high, Homeward gives you up to 89% of your home value upfront and lets you keep the additional upside on your property by listing it on the market after you accept its cash offer.
In exchange for this convenience, Homeward charges service fees of up to 7% and deducts the costs of both its original offer and any expenses associated with maintaining your home while it's being sold.
The company maintains an above-average customer rating. However, its complicated service and fee structure have led to some customer complaints. See our full Homeward review.
Did you use Homelight? Leave a review for the chance to win a $250 Amazon gift card.
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Orchard is a solid option if you want to try selling on the open market, but you like the certainty of having a backup cash offer.
Its trade-in service lets you borrow the equity in your current home to make a non-contigent offer on a new one, meaning you don't have to wait for your house to sell to free up funds for a down payment and closing costs.
The downside? Orchard's fees start at 8% of the sale price. And if your house doesn’t sell on the open market, Orchard’s backup offer will be less than your house is worth. See our full Orchard review.
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If you're unsure where to start, HomeLight Simple Sale helps you explore two options: Selling directly to a cash buyer or listing with an agent.
The company can get you multiple cash offers to choose from and help you close in as little as 10–30 days. However, reviews indicate that many sellers end up listing with a partner agent after finding that no investors are available in their area.
HomeLight agents have great reviews, but if you need to sell quickly — or want to avoid fielding calls from agents trying to earn your business — other alternatives may be a better fit. See our full HomeLight Simple Sale review.
More Opendoor competitors
What is Opendoor?
Opendoor is an iBuyer, a company that uses data to make automated cash offers on homes. In exchange for a service fee, Opendoor allows home sellers to avoid many of the hassles of selling a home — including repairs, showings, and negotiations.
If you’re considering selling to Opendoor, here are a few key points to consider:
- iBuyers like Opendoor generally pay a reasonable price for homes, especially compared to fix-and-flip investors.
- Their purchase criteria is also usually stricter — homes in need of major repairs or updating may not qualify.
- Opendoor's 5% service fee is on par with what other iBuyers charge.
- Opendoor also requests a repair concession, which varies based on the results of its home inspeciton.
- Opendoor has mostly positive online reviews, with an average 4.2/5 rating across 4,154 reviews.
If your home meets Opendoor's purchase criteria, you'll get an offer within 24–48 hours. Once you accept the offer, you can schedule your closing date within a window of a few weeks to a couple of months, depending on your needs.
Before you close, the company will order a home inspection, often reducing their initial offer price by several thousand dollars based on their repair assessment. iBuyers also charge services fees of about 5% — comparable to a traditional real estate agent commission.
Pros and cons of selling to a company like Opendoor
Pros
Convenience. While most buyers want a move-in ready home, companies like Opendoor allow you to sell your house as is without worrying about cleaning, touchups, or repairs.
Speed. iBuyers like Opendoor can usually make same-day offers. And because they pay in cash, they can close faster than traditional buyers who need approval from a lender. Some companies can close in as few as 8 days.
Flexibility. Sometimes you need a little extra time to move. Many cash buyers give you the flexibility to choose your own closing date and offer a grace period if you need more time. Many also offer perks like moving help or the ability to leave unwanted things behind.
Certainty. Selling to a cash buyer usually means less likelihood of delays or canceled contracts due to contingencies (inspection, appraisal, prior home sale, etc.) or financing issues.
Cons
Lower sale price. Buying properties fast for cash carries a lot of risk, so iBuyers like Opendoor typically pay less than full market value — although it'll probably be more what investors might pay for your house. The tradeoff can be worth it if you value speed and simplicity over maximum profit.
Less room for negotiation. While faster and more convenient than selling your house the traditional way, there's inherently less competition when selling directly to a cash buyer. And unless you put in the work to get competing offers, selling for cash leaves little room for negotiation. Therefore, it may take some time to find a decent offer.
Your home may not qualify. iBuyers are only available in select U.S. cities and are somewhat picky about the types of homes they’ll buy. If your home is older, needs a lot of work, or has unusual features (larger-than-average lot size, higher end finishes than comparable homes in the area, etc.), it may be hard for an iBuyer to value and they may pass on it.
Service and repair fees. iBuyers like Opendoor and Offerpad charge service fees of about 5%, plus deductions for repairs — which some customers complain are unreasonable. While more traditional investors don't charge repair fees, they do factor them into the offer price.
How much do companies like Opendoor pay?
Our team recently analyzed more than 200 homes purchased by Opendoor over the past two years and found that the company paid an average of 5.64% less than it eventually resold them for — meaning the typical seller took a hit of about $23,000, on top of Opendoor's service fees and repairs deductions.
Average purchase price-to-resale price for recent Opendoor listings
| Avg. Opendoor purchase price | $538,832 |
| Avg. list price | $592,401 |
| Avg. resale price | $561,729 |
| Avg. price difference | $22,895 (5.64%) |
| Source: Internal analysis of 200 homes bought and sold by Opendoor between December 2022 and September 2024. Data sourced from Bright MLS and public property records. | |
While our data on Offerpad is pending, Offerpad reviews suggest that customers have similar experiences receiving below-market offers with high repair deductions tacked on after a home inspection.
For a home in poor condition that may not fit an iBuyer's purchase criteria, you can generally expect to receive about 70–80% of your home's after repair value (ARV) from an investor.
Buy-before-you-sell services can net you full market value for your home, but you'll usually pay an extra 2%+ in service fees on top of realtor commissions and standard closing costs.
Is there a better alternative to Opendoor?
Opendoor vs. other iBuyers
Opendoor's best-known iBuyer competitor is Offerpad, which offers home sellers the option to accept a direct cash offer or list the traditional way using its offer as a backup. While Offerpad provides unique perks like free local moves and a more flexible closing window of 8–90 days, it has a much smaller footprint — purchasing fewer than 3,000 homes over the last year, compared to Opendoor's 15,000+.[2][3]
When comparing Offerpad vs. Opendoor, there are a few key differences to note:
Opendoor has a slighter higher customer rating, with an average 4.2/5 rating across 4,154 reviews. Offerpad has an average 3.9/5 from 2,814 online customer reviews.
Compared to Opendoor, Offerpad purchases far fewer homes directly — it instead encourages sellers to list the traditional way with an Offerpad agent, using their cash offer as a backup.
However, the company offers a slightly more flexible closing window of 8–90 days, plus a 3-day grace period if you need a little extra time to move. It also covers the costs of local moves for its customers.
Both iBuyers pay closer to fair market value than typical 'we buy houses' companies, but they also remove the competitive element of selling on the open market — which can result in multiple offers that bid your asking price much higher. For some people, the certainty and convenience that iBuyers provide is worth leaving some money on the table.
Opendoor vs. buy-before-you-sell companies
Rather than purchasing your home directly like Opendoor, buy-before you sell services like Homeward, Orchard, and Knock provide short-term home equity loans to help you buy your next house before you sell your current one.
After you move, you'll list your old home with a realtor and settle up with the bridge loan provider once it sells. That way, you can avoid paying two mortgages at once and skip the stress of trying to line up the closing dates.
While buy-before-you-sell companies typically offer loans interest-free, most charge service fees of about ~2% on top of the usual realtor commissions and closing costs. Some companies — like Orchard — require you to use their in-house agents to handle your home sale, while companies like Knock and Homeward allow you to hire your own.
With Opendoor, you avoid agents altogether, but you also miss out on the upside of listing your home on the open market.
Opendoor vs. 'we buy houses' companies
If your home doesn’t qualify for Opendoor's offer because of age, serious structural issues, or financial issues, selling to a 'we buy houses' company or local investor could be the right alternative.
Companies like We Buy Houses and HomeVestors give fast cash offers on less-than-perfect homes — including homes with structural problems, liens, or difficult tenants.
Like iBuyers, cash home-buying companies can usually make offers within 24–48 hours and close in as little as 1–3 weeks. You can avoid repairs and showings and won’t pay service fees, agent commissions, or closing costs either.
On the downside, cash buyers typically pay only about 70–80% of the home’s after-repair value (what they estimate it will be worth after fixing it up). However, some investors pay more under certain conditions, so you'll want to compare multiple offers before signing anything.
| Unless you need to sell now, it's probably worth talking to a local real estate agent before accepting a direct cash offer — even if your house needs work. Data from Maker Real Estate revealed that, on average, homes sold through the MLS netted sellers $49,000–104,000 more than those sold off-market to an investor or wholesaler. That's after factoring in the cost of realtor commissions, which average 5–6% of the home sale price. The benefit of the MLS is that it exposes your listing to a much broader pool of potential buyers — ranging from local investors to traditional buyers looking for a bargain. A growing number of reputable low commission real estate companies are also making the traditional home sale route easier and more cost-effective than it used to be. Plus, you can always use an iBuyer's offer to fall back on if you decide you need to move faster or it's not worth the hassle. » Compare fair cash offers from iBuyers, investors, and more to the sale price you'd get with an agent. Sell in as little as 7 days for the highest possible price. |
FAQ about Opendoor competitors
Does Zillow still buy homes?
On November 2, 2021, Zillow announced that it would permanently shut down its iBuying service, Zillow Offers. From July 2021 through September 2021, Zillow Offers lost more than $420 million, which is approximately how much the company earned overall in the 12 months before July.
On an earnings call with investors, Zillow admitted that its home-buying model was flawed and that it bought too many homes at too high a price. Today, Zillow partners with Opendoor in several markets so home sellers can see Opendoor's estimated cash offer alongside Zillow's Zestimate.
What happened to RedfinNow?
Redfin shut down its iBuying program, RedfinNow, in November, 2022. At its height, RedfinNow operated in 31 markets across the US. If a home met RedfinNow’s purchase criteria, the seller could receive an offer within a few days without hiring an agent or showing their home.
However, the company's 5–13% service fees were higher than fees of better-known competitors like Offerpad and Opendoor. The service also had poor reviews from customers, with the Better Business Bureau rating it a C–.
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.
Does Opendoor pay a fair price?
Opendoor pays less than what you'd get on the open market with a real estate agent. The company used to make competitive offers on homes, but its offers have declined since 2022, according to analyst Mike DelPrete. Plus, Opendoor often significantly lowers its initial cash offer after it inspects a home and determines repair costs. See if Opendoor's offer is worth it.
Which is better, Opendoor vs. Offerpad?
Opendoor and Offerpad offer similar iBuying services. Both companies give sellers a fast cash offer on their home and the ability to close on a flexible timeline. They also both charge a 5% service fee. However, Opendoor generally charges less for repairs and is available in more markets, while Offerpad provides perks like free local moves and a three-day grace period if you need to stay in your house after closing. See how Opendoor and Offerpad compare.