Opendoor reviews summary
Opendoor has generally positive customer reviews, with an overall rating of 4.3 across 2,733 reviews.
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.
Opendoor may work for you if your priority is closing quickly. But most customers can get a better deal by working directly with a traditional real estate agent.
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. Data from iBuyer expert Mike DelPrete suggests that, as of May 2023, Opendoor’s offers are declining and well below what they were just a couple of years ago. As with most iBuyers, Opendoor's offers are designed to be lower than actual market value.
|Opendoor at a glance|
|💰 Service fee||5% of sale price|
|⭐ Average customer rating||⭐⭐⭐⭐ (2,733 reviews)|
|📍 Locations||AL, AZ, CA, CO, FL, GA, ID, IN, MN, MO, NV, NJ, NY, NC, OH, OK, OR, SC, TN, TX, UT, VA, DC|
|⏱️ Closing timeline||14–45 days for buyers, 14–60 days for sellers (depending on the customer’s desired closing date)|
Editor's take: 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.
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. Get cash offers from iBuyers today!
❓ 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 and RedfinNow, 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.
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
How much does Opendoor cost?
Opendoor’s service fee for home sellers is 5% of the final sale price, but the total cost ranges from 7–10% when closing costs and repair deductions are included.
Closing costs are approximately 1–3% while deductions that Opendoor makes for repairs can range from 1–2%.
🔍 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
- 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
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.
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.
The process goes like this:
- 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.
Opendoor lists the houses that they own on their website where potential buyers can browse and request information.
- 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.
🔑 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 is currently active in over 50 markets across the country, including:
- Los Angeles
Opendoor reviews from real customers
The majority of Opendoor reviews from customers are positive, with an average rating of 4.3 across 2,733 reviews.
|Better Business Bureau||3.21||274|
Positive Opendoor reviews focused on:
- A fast, seamless transaction.
- A done-for-you selling experience that matched the customer's desired timeline.
Negative Opendoor reviews focused on:
- Inflated repair costs.
- An inability to negotiate Opendoor's offer price.
💰 In a hurry to sell? Take this short quiz to get matched with a realtor. Your agent will help you compare cash offers from reputable companies in your area. Plus, you'll get a free home valuation so you'll know what your home is really worth.
What customers liked
Trey noted that the offer he received was competitive, and he was very pleased with his experience selling to Opendoor.
Ellen appreciated not having to show her house to multiple buyers and said that working with Opendoor was easy.
What customers didn’t like
An anonymous reviewer from Texas said that Opendoor did not negotiate fairly.
R Pearis says that the experience didn’t meet his expectations, but he really likes the idea behind Opendoor’s service.
Selling to Opendoor vs. listing with a real estate agent
Selling to Opendoor is more predictable and sometimes faster than selling with a realtor. That’s because Opendoor can make an offer quickly and close when you want while realtors can’t guarantee that the right buyer will come along quickly.
However, a realtor will be able to net you more money by getting your house in front of multiple buyers ensuring that you get the best possible price.
|⚡ Quick tip: We recommend listing your home on the open real estate market with the help of an agent before you try selling to Opendoor. This way, you can test the open market and get the highest possible offer for your home. Your agent can even request an offer from Opendoor on your behalf if you change your mind. You might still have to pay your agent's listing commission if you've signed a listing agreement, but Opendoor will only charge a reduced service fee in this case.|
Opendoor charges a 5% service fee that’s slightly lower than the 6% commission that real estate agents are typically paid. Closing costs and repair fees are still a factor in either case.
Agents have an incentive to get the most possible money for your home because the more you make, the more they make in the form of commission. Opendoor, by contrast, has an incentive to pay less than a private buyer for your home.
|5% service fee||6% realtor commission|
|Offers are competitive, but not maximum value||Sells for whatever the highest bidder is willing to pay|
|Flexible closing||Closing negotiated with buyer|
|No showings or prep work required||Must prep and show home|
|Fast, predictable selling time||Unknown selling time|
» LEARN: Does Opendoor negotiate?
Alternatives to Opendoor include leading competitors like Offerpad, companies that also buy houses in select markets.
Opendoor stands out because:
- Their service fees are low.
- There’s no penalty for walking away from a deal.
Here’s a quick comparison of how Opendoor stacks up against the alternatives:
|Repair costs||Deducted from offer||Deducted from offer|
|Partner agents||In-house agents + partner agents||In-house agents|
|Flexible closing date||✅||✅|
|Cancellation penalty||None||1% you cancel after the inspection|
|Late checkout option||✅||✅|
A Clever agent can help you see how the different iBuyers in your area compare. Your Clever agent can request offers from local iBuyers on your behalf and even negotiate offers for you. Plus, your Clever agent can provide a free comparative market analysis that tells you the fair market value of your home, so you'll know if you're really getting a good deal.
Compare offers from top companies like Opendoor to the sale price you'd get with an agent.
Other Opendoor services and entities
Aside from instant cash offers, Opendoor offers other real estate services like mortgage, realtor services, and title insurance. Because of market conditions, Opendoor has discontinued a number of its services.
Opendoor Home Loans
Opendoor Home Loans is Opendoor’s mortgage lending solution. As an Opendoor customer, you have the option (but not the obligation) to finance the purchase of your new home using Opendoor Home Loans.
The lender offers mortgages with competitive interest rates and does not charge any lender fees. You’ll also get a $2,500 credit at closing, subject to eligibility.
Opendoor has also partnered with another lender, Lower, and offers a similar $2,500 credit at closing for eligible clients.
Opendoor’s brokerage can provide you with an 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.
In 2019, Opendoor acquired OS National, a national title insurance company.
As a result, Opendoor can now offer title insurance and escrow services to customers internally through Opendoor Title.
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?
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 claimed 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 Offers exited the iBuying industry and is no longer purchasing homes.
When Zillow Offers was in operation, Opendoor was the better option of the two if you're interested in a quick sale. Both companies had similar associated fees, with an average of 1% in closing fees and 5% in services fees. Opendoor reviews also have a higher customer rating compared to Zillow reviews.
To get the best idea of which one would have been best for you, getting estimates for each and comparing the purchase price would be a strategic move since neither company requires (or required) obligations.