Top 5 competitors | Sell to an iBuyer | Trade in your home | List with an agent | Sell to a cash buyer | FAQs
Opendoor is the largest iBuyer now that its top competitor, Zillow Offers, has officially shut down. But there are still legitimate alternatives that are worth giving a look if you’re considering selling to an iBuyer.
Opendoor vs. top competitors in 2022
If you’re considering selling to an iBuyer, Opendoor is a good option. Compared to its competitors, Opendoor usually pays a bit more for homes and charges competitive fees. Opendoor is also available in more cities than Offerpad and RedfinNow, and has a higher average customer rating.
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.
Clever can match you with an agent who can request offers from Opendoor and its competitors to see who comes back with the best price and terms. Plus, your Clever agent can show you how much you could earn by listing your home, giving you all the info you need to take the next step.
⚡️ 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 1-2 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.
» MORE: Average real estate commission rate in each state
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.
» MORE: See how the leading iBuyer companies compare
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.
» MORE: Find out more about home trade-in services like Orchard and Knock
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 an agent 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.
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 3 weeks.
You can sell your home as-is to a cash buyer and avoid home showings, agent commission, and negotiations with 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 5 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 alternatives to Opendoor, including other iBuyers as well as trade-in services and cash buyers.
Offerpad
Offerpad
Full ReviewService Fee
5%
Closing Date Window
8–90 days
Average Rating
3.9 | 524 reviews
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 (8–90 days) and is liked by customers for its personalized customer service and perks like a free local move.
Pros
- Generous closing window compared to competitors
- Late checkout option gives sellers up to 3 days to move out after closing
- Access additional services, such as free local moves within 50 miles
Cons
- You might face a 1% cancellation fee if you back out of the sale
- 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: Denver
- FL: Jacksonville, Orlando, Tampa
- GA: Atlanta
- IN: 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 8/17/2022, Offerpad's average customer rating is 3.9 based on 524 reviews.
- Review.io: 2.2 | 19 reviews
- Better Business Bureau: A+ | 4.23 | 258 reviews
- Website: www.offerpad.com
- Phone: (844) 388-4539
- Email (Sellers): info@offerpad.com
- Email (Buyers): buyers@offerpad.com
Offerpad comes in as a close second to Opendoor, with an identical service fee of 5% and an overall positive rating of 3.9 out of 5 stars. Offerpad has a more flexible closing date window than Opendoor, allowing sellers to choose a date between 10–90 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 more than four days after the inspection report. That’s a lot of money to pay only to start over!
Offerpad also pays, on average, a little less for homes. And it is available in fewer markets: only 25 compared to Opendoor’s 47.
Offerpad is a comparable alternative 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.
RedfinNow
RedfinNow (No longer available)
Full ReviewService Fee
5–13%
Closing Date Window
10–30 days
Average Rating
Not available
In November, 2022, Redfin announced that its home-buying service, RedfinNow, would be shut down. If you're still looking for an iBuyer, check out our list of top iBuyers.
Pros
- Expanded presence in cities across California, including several not served by other iBuyers
- Large and trusted corporate brand
- Older homes (built after 1930) are eligible in select cities
Cons
- Relatively expensive services fees (up to 13% of the offer price)
- Relatively limited flexibility on closing window, compared to competitors
RedfinNow is currently purchasing homes in 31 locations, including
- AZ: Phoenix
- CA: Inland Empire, Los Angeles, Orange County, Palm Springs, Sacramento, San Diego, San Francisco
- CO: Denver
- TX: Austin, Dallas, Houston, San Antonio
- WA: Seattle
As of 10/21/2022, RedfinNow's weighted average is 2.5 based on 7 reviews.
- Trustpilot: 2.5 | {ibuyers.redfinnow.trustpilot_count} reviews
- Website: www.redfin.com/
- Phone: (951) 229-0511
- Email: redfinnow@redfin.com
RedfinNow is another leading iBuyer, but its variable fee of 5–13% makes them potentially more expensive than Opendoor or Offerpad.
RedfinNow is available in 47 markets nationwide, but it tends to buy fewer homes than Opendoor or Offerpad. One reason for this might be its relatively strict purchasing criteria: for example, they only buy homes on .5 acres or less.
One clear advantage of RedfinNow over Offerpad and Opendoor is its rent-back program that allows you to rent back your home for 29–90 days after closing for $100 per day.
RedfinNow is a good option if it decides your home will be on the lower end of their sliding fee scale. You can get a no-obligation offer to compare. The rent-back program is also a plus for people who need time before they can move into their new home.
Knock
Knock
Full ReviewService Fee
1.25%
Closing Date Window
Varies
Average Rating
4.8/5 (710 reviews)
Knock allows customers to purchase a new home before selling their old one. Unlike typical iBuyers, 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.
Pros
- You'll sell on the open market, potentially receiving offers above fair market value
- $25,000 advance for home repairs before selling
- Compared to competitors, Knock accepts older homes (built after 1930)
Cons
- 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 15 locations.
- AZ: Phoenix
- CO: Denver
- FL: Fort Lauderdale, Jacksonville, Miami, Orlando, Tampa, West Palm Beach
- GA: Atlanta
- NC: Charlotte, Raleigh-Durham
- TX: Austin, Dallas-Fort Worth, Houston, San Antonio
As of {ibuyers.knock.reviews_update_date}, Knock's weighted average is 4.8/5.0 based on 810 reviews.
- Better Business Bureau: 4.35/5.0 | 17 reviews
- Trustpilot: {ibuyers.knock.trustpilot_rating}/5.0 | {ibuyers.knock.trustpilot_count} reviews
- Zillow: 4.8/5.0 (740 reviews)
- Website: https://www.knock.com/
- Phone Number: (866) 996-1695
- Email Address: hello@knock.com
While Opendoor provides home buying, selling, and trade-in, Knock works exclusively with trade-ins.
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. These costs (plus Knock’s fee of 1.25% of the new home’s purchase price 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.
Orchard
Orchard
Full ReviewService Fee
6%
Closing Date Window
14–60 days
Average Rating
4.6/5 (97 reviews)
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 to get top dollar for your home, Orchard is worth considering. However, Orchard only accepts newer homes compared to its competitors.
Pros
- You'll have a generous 7-day window to consider Orchard's offer
- 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
Cons
- Homes must be relatively new, compared to competitors (built after 1972 vs. 1930-1960)
- Orchard's cash offers will likely be much lower than what you'd be able to sell for on the open market
Orchard is currently operating in nine locations.
- CO: Colorado Springs, Denver
- GA: Atlanta
- NC: Charlotte, Raleigh-Durham
- TX: Austin, Dallas-Fort Worth, Houston, San Antonio
As of 10/21/2022, Orchard's average customer rating is 4.8/5.0 based on 1,184 reviews.
- Trustpilot: {ibuyers.orchard.trustpilot_rating}/5.0 ({ibuyers.orchard.trustpilot_count} reviews)
- Better Business Bureau: {ibuyers.orchard.bbb_rating}/5.0 (14 reviews)
- Website: https://orchard.com/
- Phone: (844) 515-9880
- Email: hello@orchard.com
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 Move First program 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 up to 90% of your current home’s value to buy a new one. You can buy your new home and move in right away. Orchard will cover your old home’s mortgage payments until it sells.
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% fee.
Currently, Orchard only operates in 11 metropolitan areas, so it’s not an option for many people who want to buy and sell at the same time.
We Buy Ugly Houses
We Buy Ugly Houses
Full ReviewTime to Offer
Varies
Minimum Closing Time
3 weeks
Closing Costs
No cost for seller
We Buy Ugly Houses has a better reputation than most individual cash buyers, but the home seller's experience can vary based on the quality of their local franchise. While We Buy Ugly House can close in as little as three weeks, it's common knowledge that they pay far less than fair market value.
Pros
- Trusted, nationally recognized brand.
- No need to worry about repairs.
- Close in just three weeks.
Cons
- 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 46 states.
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: https://www.webuyuglyhouses.com/
- Phone Number: 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 800 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 best companies that buy houses for cashto take a deeper look at the competition.
Top FAQs about Opendoor competitors
Opendoor is an iBuyer, a company that offers cash for homes in exchange for a fee. Opendoor has many advantages over other iBuyers. Its 5% service fee is the lowest among top iBuyers, it generally pays the most for homes, and the company has many positive reviews online. Learn more about Opendoor.
Opendoor takes the traditional home selling experience and streamlines it, 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 find to be worth it.
However, you’ll almost always make more money by selling your home with a realtor on the open market where you will invite competitive offers. Find out more about how Opendoor works.
Opendoor is an iBuyer; Redfin is a discount real estate brokerage. Redfin offers iBuying services through RedfinNow, which operates similarly to Opendoor.
Both Opendoor and RedfinNow give fast cash offers on homes and allow the seller to close within a week or two. However, RedfinNow charges a variable fee of 5–13% for their service, while Opendoor has a flat 5% service fee. Learn more about how Opendoor and RedfinNow compare.
No. Opendoor and Offerpad are two distinct companies that offer similar iBuying services. Both companies charge a flat 5% service fee to give sellers a fast cash offer on their home and the ability to close on a flexible timeline. Opendoor generally pays more for homes than Offerpad. Opendoor is also available in more markets than Offerpad. See how Opendoor and Offerpad compare.
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 is buying and selling at an incredibly high volume. Their business model depends upon sellers willing to pay for the convenience of a quick sale. Sellers who sell on the open market have a better chance of getting a higher price. Learn more about Opendoor's costs.