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Opendoor is part of a new real estate movement known as "iBuying" — companies that make near-instant, all-cash offers on qualifying homes.
If your home fits the company's criteria, you'll get a preliminary offer within 24 hours. In some cases, the entire sale can take as few as 14 days, from accepted offer to closing.
This can be a great option for people who need to sell quickly or simply want to avoid the stress and hassle of the traditional listing process.
In exchange for this service, Opendoor charges a fee — 3.5-5% — which helps offset carrying costs and ensure it turns a profit on each transaction.
Of course, Opendoor isn't the only fish in the sea. There are a number of other iBuyers out there, each with its own set of unique advantages and drawbacks.
Keep reading to learn more about Opendoor and how it stacks up against top competitors.
Opendoor's Business Model: A Quick Overview
Founded in 2015, Opendoor is often credited with launching the iBuyer movement in the United States.
Its primary goal is to save homeowners time and stress by offering a quick and convenient alternative to the traditional home selling process.
It also offers potential cost savings: when you sell to Opendoor, there's no need to hire a real estate agent, post a property listing, pay for professional photos, negotiate with buyers, or hire a real estate attorney.
The company uses advanced algorithmic technologies, massive amounts of data, and a team of in-house experts to make fair, competitive offers on the properties it buys.
In order to turn a profit, the company charges a service fee of 3.5-5%.
Because it buys and resells properties at an incredibly high volume, Opendoor is able to mainly relatively thin margins on each sale, relying on its fee and market appreciation to turn a profit.
Importantly, this sets the company apart from traditional house flippers and cash buyers (think We Buy Ugly Houses), who profit by lowballing sellers then turning around and re-listing for a massive profit.
A few additional key considerations:
- Even if your home qualifies for an Opendoor offer, you may still be on the hook for repairs. These will be assessed during an on-site inspection, and costs will be deducted from your final offer price.
- The company has strict criteria and is currently active in only 23 U.S. markets — read our full Opendoor review to find out what kinds of homes Opendoor will buy, and where.
Top Alternatives to Opendoor
We've compiled a list of some of the top Opendoor alternatives out there today — click on the link to read a full, in-depth review of each company:
Offerpad
Offerpad
Full reviewService fee
6%
Closing date window
8–60 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 (8–60 days) and is liked by customers for its personalized customer service and perks like a free local move.
Pros
- 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.
Cons
- 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 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: offerpad.com
- Phone: (844) 388-4539
- Email (sellers): info@offerpad.com
- Email (buyers): buyers@offerpad.com
» READ: The full Offerpad guide here
Zillow Offers
Zillow Offers (No longer available)
Full ReviewService Fee
6% + 1.5-9%
Closing Date Window
7-90 days
Average Rating
Not available
As of November 2, 2021, Zillow Offers is no longer purchasing homes. Zillow has permanently shut down its iBuying business.
Pros
- Extra time to decide: Initial cash offers are valid for 5 business days
- Generous closing window compared to competitors
- Offers are typically within 1-2% of fair market value
Cons
- Fees could total up to 13.9% (6% selling fees plus a maximum 7.9% in service fees)
- Upselling: Zillow will try to get you to work with a premier agent, even if you decline its cash offer
- No option to do repairs yourself
Zillow Offers currently purchases homes in 25 locations.
- AZ: Phoenix, Tucson
- CA: Los Angeles, Riverside, Sacramento, San Diego
- CO: Colorado Springs, Denver, Fort Collins
- FL: Jacksonville, Miami, Orlando, Tampa
- GA: Atlanta MN: Minneapolis
- NC: Charlotte, Raleigh
- NV: Las Vegas
- OH: Cincinnati
- OR: Portland
- TN: Nashville
- TX: Austin, Dallas, Houston, San Antonio
As of February 15, 2021, Zillow Offers does not have any verified customer reviews on reputable third-party review sites.
- Website: www.zillow.com/offers
- Phone: 1-833-963-3377
- Email: zosupport@zillowgroup.com
» READ: The full Zillow Offers guide here
Orchard
Orchard
Full ReviewService fee
Typically 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 top dollar for your home, Orchard is worth considering. However, Orchard only accepts newer homes.
Pros
- 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.
Cons
- 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 10/21/2022, Orchard's average customer rating is 4.8/5 based on 1,184 reviews.
- Trustpilot: {ibuyers.orchard.trustpilot_rating}/5 ({ibuyers.orchard.trustpilot_count} reviews)
- Better Business Bureau: {ibuyers.orchard.bbb_rating}/5 (14 reviews)
- Website: orchard.com
- Phone: (844) 515-9880
- Email: hello@orchard.com
» READ: The full Orchard guide here
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
» READ: The full RedfinNow guide here
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 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.
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 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
» READ: The full We Buy Ugly Houses guide here
Knock
Knock
Full reviewService fee
2%
Closing date window
Varies
Average rating
4.8/5 (710 reviews)
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.
Pros
- 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).
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 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 810 reviews.
- Better Business Bureau: 4.35/5 (17 reviews)
- Zillow: 4.8/5 (750 reviews)
- Website: knock.com
- Phone: (866) 996-1695
- Email: hello@knock.com
» READ: The full Knock guide here
Which option is best for you?
As you may have guessed, there's no single, correct answer to this question. The right choice ultimately depends on your unique situation, priorities, and requirements.
Your home is one of the most valuable assets you'll ever own. As such, we recommend exploring as many options as possible before making a final decision on how to sell.
That means not only requesting offers from multiple iBuyers, but also speaking to a few local real estate agents to see if you might be able to net you more money on the open market within your required timeline.
Either way, we recommend seeking some advice from an expert.
If you're currently weighing your options, Clever can help! Our team of licensed experts is standing by to answer your questions, offer free advice, and refer you to the best home selling solutions, given your specific needs and goals.
Importantly, our referral service is 100% free and there's never an obligation to move forward with any of our recommendations. Fill out the form below to speak with one of our licensed experts!
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