Opendoor reviews from real customers | Opendoor fees | Alternatives to Opendoor
Opendoor reviews summary
Opendoor has generally positive customer reviews, with a weighted average rating of 4.2/5 across 3,460 reviews. Customer experience may vary by location, since Opendoor operates in 50+ markets and doesn't offer all services in all areas.
The company gets top marks for being easy to use and for quickly completing transactions.
However, it pays less than market value for homes, and the latest data suggests its offer amounts are declining. Some Opendoor reviews also complain about high repair costs, which can lower the final profit on your sale. And some buyers report problems with repair quality and closing delays.
Opendoor isn’t necessarily the perfect solution for a fast, convenient sale, and there are solid alternatives.
What is Opendoor?
Opendoor is an iBuyer — a real estate company that buys houses for cash and then resells them on the open market.
Opendoor buys more single-family houses than any other iBuyer, and it's active in over 50 cities across the country. As with most iBuyers, Opendoor's offers are designed to be lower than actual market value.
| 💰 Service fee | 5% of sale price |
| ⭐ Average customer rating | 4.2/5 (3,460 reviews) |
| 📍 Locations | AL, AZ, CA, CO, DC, FL, GA, ID, IN, KS, MA, MI, MN, MO, NC, NM, NV, NJ, NY, OH, OK, OR, SC, TN, TX, UT, VA |
| ⏱️ Closing timeline | 14–45 days for buyers, 14–60 days for sellers |
Should I use Opendoor?
Opendoor may be a good solution if you're looking for a quick, hassle-free sale with a legitimate company.
However, you'll likely net more money by selling your home on the open market with a realtor. Opendoor charges a 5% service fee, plus deductions for repairs and closing costs. Real estate agents typically charge a 6% commission, but you'll usually receive higher offers and have more control over repair costs.
Also, as of May 2023, data from iBuyer expert Mike DelPrete suggests that Opendoor’s offers are declining and well below what they were just a couple of years ago.[1]
Before you accept an offer from Opendoor, we highly recommend comparing it to offers from a few other companies in your area. That way, you can ensure you get the best price for your home.
If you want fast cash offers for your home, Clever Offers can help. A local agent can provide you with a free, no-obligation home valuation and help you compare cash offers from reputable companies in your area.
Compare offers from top cash buyers, plus get an expert realtor's opinion on what your house is worth.
Is Opendoor legitimate?
Yes — Opendoor is a legit company that buys and sells single family homes in over 50 cities across the country. Opendoor charges a 5% service fee to home sellers and can close in as little as 14 days, but the company's instant offers are slightly below the typical open market sale price. The service charge is deducted from the home's sale price.
Opendoor was founded by Eric Wu in 2014 as the first iBuyer. Other companies, like Offerpad, have adopted a similar business model.
Opendoor has raised a combined total of $1.9 Billion from venture capital investors since 2013, and went public on December 21, 2020.[2]
Home buyers can also use Opendoor's cash to make a non-contingent cash offer in a competitive market.
» JUMP TO: See what actual customers think of Opendoor
Opendoor fees and costs
Opendoor’s service fee for home sellers is 5% of the final sale price, but the total cost is 7–10% including repair and closing costs.
Closing costs are approximately 1–3% while Opendoor's deductions for repairs can be 1–2%.
| Service fee | 5% |
| Closing costs | 1–3% |
| Repair costs | 1–2% |
| Total | 7–10% |
Repair costs
After Opendoor completes a home inspection, it gives you an updated offer with deductions for repair costs. Typically, Opendoor doesn’t negotiate its offer or the repair costs.
If you accept the offer, Opendoor will handle the repairs. That said, some online reviewers felt that the repair costs quoted were too high, resulting in an offer well below what was initially quoted.
This doesn’t mean that their repair quote was incorrect. But if the repairs are more than anticipated, you may want to get a second opinion.
For instance, you may be able to save money on repairs by:
- Doing them yourself
- Paying a contractor who can do the work for less than Opendoor’s estimate
- Getting a buyer willing to take on the repairs themselves
Opendoor preliminary offer vs. final offer
Opendoor's preliminary offer is usually 2–5% higher than the company's final offer, so it's good to think of your preliminary offer as an estimate. That's because the "instant" cash offer is an estimate based on information you provide Opendoor about your home's size, age, and features.
The final offer you receive from Opendoor includes deductions for repairs, which can range from 1–2%, and seller closing costs, which can range from 1–3%.
🏠 What kinds of homes does Opendoor buy?
Unlike many cash buyers, iBuyers like Opendoor have strict criteria about which properties they buy. Opendoor makes offers on the following types of homes:
- Single family
- Townhouse
- Duplexes (select markets)
- Condos (select markets)
In addition, Opendoor’s criteria for purchasing a home includes:
- Valuation between $100,00 and $600,000 (but can be as high as $1.4 million in some markets)
- Maximum lot size of 1–2 acres, depending upon market
- Built after 1930
- Seller has clear ownership
- Owner-occupied for late checkout or vacant at closing
While these are the general criteria, there may be exceptions or additional requirements in certain markets.
Pros and cons of selling to Opendoor
Pros
- Ease and speed. You'll receive an offer within 24 hours and you can close within weeks.
- No need to prep your home. Opendoor will take care of repairs and other home prep tasks that you’d normally have to worry about on your own.
- Choose your own closing date. No need for extensive negotiation between agents, you can choose the perfect date for closing.
Cons
- Lower sale price. Opendoor will pay fair market value, at most, for your home. Motivated private buyers are likely to pay more.
- Limited market availability. Opendoor is currently only available in around 50 cities in the United States.
- Only certain homes qualify. Opendoor generally only buys single-family homes, townhomes, duplexes, and condos between $100,000–600,000.
How Opendoor works
Most Opendoor customers start their experience online.
- Sellers can get an offer from Opendoor within days of submitting the online form and close in 14–60 days, depending on their desired timeline.
- Buyers can submit an offer online or through their agent and close in 14–45 days, depending on their desired timeline.
For sellers
Sellers start the process by completing an online estimate form to request an offer from Opendoor.
The form asks for things like:
- Your location
- A picture of your house
- A description of your house
- Details about any upgrades/renovations that you are aware of
Opendoor will use this information to provide you with their initial estimate before sending a real estate inspector to the property. The preliminary offer includes a range that approximates the final sale price.
Steps to selling a house with Opendoor
- Complete the online estimate form to request a cash offer.
- Receive an offer from Opendoor.
- Schedule a virtual walkthrough of your home.
- After the home inspection, get a final offer from Opendoor that includes repair deductions.
- Accept Opendoor's offer, sign the purchase agreement, and pick a closing date.
- Get paid within a few days of closing.
What is Opendoor's cancellation policy?
According to Opendoor's website, you can cancel your contract at any time before closing if you decide not to sell.
There's no penalty for canceling the sale — unlike Opendoor's main competitor, Offerpad, which charges a 1% cancellation fee.
For buyers
Opendoor lists the houses that they own on its website where potential buyers can browse and request information.
Steps to buying a house with Opendoor
- Find a home online or through the Opendoor app.
- Take a private tour using the app.
- Submit an offer through your agent or by yourself.
- Opendoor will respond in 24–48 hours.
- If your offer is accepted, your agent can draft a purchase agreement.
- Sign and go to escrow.
- Make your earnest money deposit.
- Schedule inspection and negotiate repairs/closing costs.
- Close in 14–45 days.
📱 The Opendoor app
The Opendoor app allows you to manage your entire transaction with Opendoor on your smartphone, whether you're buying or selling. The app is convenient if you're comfortable doing a major transaction on your phone, but could be frustrating if you'd rather have a more personal touchpoint.
If you're selling your home, you can request an offer and see your selling options through the app.
If you're buying a home, you can use the app to browse Opendoor listings, access an Opendoor-owned home, and even submit an offer.
The Opendoor team will communicate with you through the app for the duration of your transaction.
You can download the Opendoor app in the App Store for iOS devices or on Google Play for Android.
🔑 Opendoor Exclusives
Opendoor Exclusives is an off-market list of homes that Opendoor is offering at a lower price. The homes are ones that Opendoor has purchased and renovated. They are listed at a discounted price for 14 days. If they don't sell, they're listed on the MLS for a 2–4% higher price.
Opendoor locations
Opendoor is currently active in these markets across the country:
- Alabama: Birmingham
- Arizona: Phoenix, Prescott, Tucson
- California: Los Angeles, Riverside, Sacramento, San Diego, San Francisco Bay Area
- Colorado: Colorado Springs, Denver, Northern Colorado
- Florida: Jacksonville, Miami, Orlando, Tampa, Southwest Florida
- Georgia: Atlanta
- Idaho: Boise
- Indiana: Indianapolis
- Massachusetts: Boston
- Michigan: Detroit
- Minnesota: Minneapolis–St. Paul
- Missouri: Kansas City, St. Louis
- Nevada: Las Vegas, Reno
- New Mexico: Albuquerque
- New York: Long Island, Lower Hudson Valley
- New Jersey: Various counties
- North Carolina: Ashville, Charlotte, Greensboro–Winston, Raleigh–Durham
- Ohio: Cleveland, Columbus, Cincinnati
- Oklahoma: Oklahoma City
- Oregon: Portland
- South Carolina: Charleston, Columbia, Greenville
- Tennessee: Chattanooga, Knoxville, Nashville
- Texas: Austin, Corpus Christi, Dallas–Fort Worth, Houston, Killeen, San Antonio
- Utah: Salt Lake City
- Washington, DC
Opendoor reviews from real customers
The majority of Opendoor reviews from customers are positive, with a weighted average rating of 4.2/5 across 3,460 reviews.
| Rating | Total reviews | |
|---|---|---|
| Weighted avg. | 4.2/5 | 3,460 |
| Reviews.io | 4.4/5 | 3,186 |
| Better Business Bureau | 1.3/5 | 201 |
| Trustpilot | 1.4/5 | 73 |
What customers like
Positive Opendoor reviews focus on:
- A fast, seamless transaction
- A done-for-you selling experience that matched the customer's desired timeline
Many sellers liked the convenience of Opendoor’s process, with no repairs, showings, or complicated closings.
And some reviewers appreciated the free initial quote. Even if they didn’t accept the offer, it gave them a floor price for what to expect for their home. They also liked that they weren’t charged a cancellation fee.
What customers don’t like
Negative Opendoor reviews focus on:
- Inflated repair costs
- Final offers that were much lower than the initial estimates
- An inability to negotiate Opendoor's offer price
Some sellers felt the repair costs and fees were too high, resulting in offers far below the initial estimate and fair market value for their home. They didn’t like that they couldn’t negotiate repair costs or make repairs themselves (or with the help of a contractor they hired).
Some buyers felt that Opendoor made substandard or incomplete repairs. Some reviewers also mentioned having trouble reaching their contact at Opendoor to address problems.
Another complaint is having sales fall through at the last moment or closing delays. These delays caused some people to struggle finding a place to live until the closing date.
Additionally, some buyers and sellers were frustrated that they couldn't negotiate offers.
Top Opendoor alternatives
Sell to another cash buyer
Opendoor isn’t the only option if you want a quick cash offer. You can also get offers from local investors, another iBuyer like Offerpad, or a "we buy houses" company.
| Best for | Service fee | Closing timeline | |
|---|---|---|---|
| Clever Offers | Sellers who want to compare multiple offers | Varies | Varies |
| Offerpad | Sellers who value convenience over sale price | 6% | 8–60 days |
| "We buy houses" companies | Sellers with hard-to-sell homes | None | As little as 7–10 days |
Clever Offers
Clever Offers is a free service that helps you quickly compare offers from reputable cash buyers in your area, including Opendoor.
Clever connects you with a concierge and a trusted local agent. Your concierge gathers cash offers for you and walks you through your options. Your agent gives you a free home valuation, so you can compare the cash offers to what you could get on the open market.
If you decide you want to sell traditionally instead of to a cash buyer, you can list with your agent for half the typical listing fee — and still get full service.
Use Clever's free, no-obligation service to compare cash offers from top local companies with the help of a local real estate agent. You'll get a professional home valuation so you know what your home is worth, and an agent can negotiate on your behalf to make sure you get the best deal.
Offerpad
Offerpad is the second largest nationwide iBuyer. Like Opendoor, it provides cash offers within a few days and can close quickly. It also has similarly strict criteria for the properties it buys, avoiding homes in poor condition.
Offerpad’s 6% service fee is slightly higher than Opendoor’s. And unlike Opendoor, Offerpad charges a 1% cancellation fee if you back out after accepting its cash offer. However, customer reviews suggest that Offerpad may be more open to negotiation.
While iBuyers offer a convenient selling process, you won’t get as much money for your home as you would selling with an agent.
» MORE: Offerpad Reviews: Everything You Need to Know
‘We buy houses’ companies
"We buy houses" companies also make quick cash offers. They may be a good option if you need to sell quickly and have a home in poor condition.
Unlike iBuyers, these companies typically want to buy fixer-uppers at a bargain. And they often pay no more than 70% of what they expect to net after fixing and flipping a home.
» MORE: Are "We Buy Houses" Companies a Rip-Off?
List with a real estate agent
While realtors can’t guarantee a fast sale, they can create a strategy to sell on your timeline. And selling with a realtor is usually the best option if you want to maximize your profit.
Agents can get you more money for your home by creating competition among multiple buyers. Also, agents have an incentive to get the most money for your home, since the more you make, the more commission they earn.
Traditional real estate agents charge 2.5–3% in commission, but you can find full-service agents who charge a lower listing fee, around 1.5–2%. That’s lower than Opendoor’s service fee.
We recommend interviewing multiple agents before you choose one. A free service like Clever can match you with several top agents to compare. Each agent in its network is a top performer in their area and offers full service for just 1.5%. You can interview as many agents as you'd like, and you have no obligation to move forward.
» MORE: The Best Low Commission Realtors and Brokers
Other Opendoor services and entities
Aside from instant cash offers, Opendoor offers other realtor services, title insurance, and financial services through its partnership with Lower. Because of market conditions, Opendoor has discontinued a number of its services, such as Opendoor home loans.
List with Opendoor
Opendoor’s brokerage can provide you with a local Opendoor agent who will represent you if you want to list your house for sale through Opendoor. This is similar to working with a real estate agent at a major brokerage as you would in a traditional sale.
However, Opendoor real estate agents cannot represent buyers who want to buy an Opendoor home as this would constitute a conflict of interest.
Opendoor Buy & Sell
Opendoor Buy & Sell (formerly Opendoor Complete) allows you to coordinate selling your current home and buying a new one. That way, you can avoid multiple moves, mortgages, and closing dates. You sell your home directly to Opendoor, use the company's cash to make an offer on a new home, and coordinate closing dates.
Opendoor Title
In 2019, Opendoor acquired OS National, a national title insurance company.[3]
As a result, Opendoor can now offer title insurance and escrow services to customers internally through Opendoor Title.
Refinancing with Lower
Opendoor is partners with Lower, a financial technology platform, to help customers save money when refinancing their mortgage.
How Opendoor makes money
The Opendoor business model is to buy houses and make a thin profit margin from each home sale, plus the service fees they charge.
Opendoor’s service charge is capped at 5%. The company bases this charge on how long they expect it will take to sell the home on the open real estate market. Part of the fees go to cover costs of holding the home, like taxes, utilities, and maintenance.
Opendoor lays out their calculations for your home value and service charge for each offer in a report. The report details the price of comparable homes that have sold recently in your neighborhood. It also accounts for unique aspects of your home that could affect value, such as a finished basement, proximity to quality schools, and walkability to shopping or public transit.
The home assessment also includes repairs needed before Opendoor sells the house, and how the costs of these repairs will affect your offer.
» MORE: Is Opendoor worth it?
Opendoor FAQ
Does Opendoor pay a fair price?
According to industry experts and prevailing data, Opendoor pays less than what sellers could get on the open market, although offers can be stronger in a seller's market. At the beginning of 2023, offers from Opendoor were significantly lower than Zillow’s estimated market value, according to iBuyer expert Mike DelPrete.
Does Opendoor negotiate?
You can ask an Opendoor representative to re-evaluate your cash offer if you feel like the company has missed key features of your home that could affect its value, but your ability to negotiate may be limited by the company's strict purchase criteria.
If you're buying a home from Opendoor, you or your buyer's agent can try to negotiate the price point, but according to Opendoor reviews, customers claim the company likes to sell close to the listing price.
Does Opendoor pay closing costs?
Opendoor does not cover closing costs — whether you're buying, selling, or trading in. This stands in contrast with a normal real estate transaction where who pays what closing costs is typically up for negotiation.
That said, one of the benefits of selling to Opendoor is there are no hidden fees. Everything, including how much you'll have to pay in closing costs, will be presented to you before you accept the final offer.
Are Opendoor offers legitimate?
Yes, Opendoor is a legitimate company to sell your home through. Your home purchase price will be lower than market value and you'll be subject to Opendoor fees, but the entire process is quick and stress-free. Selling with Opendoor is a great solution if you're looking to sell fast.
Which is better: Opendoor or Zillow?
Opendoor and Zillow used to be the top iBuyers in the industry. In November 2021, Zillow shut down its iBuying business.
Contact Opendoor
| [email protected] | |
| Phone | 1-888-352-7075 |
| Request an offer | opendoor.com |
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