Is Opendoor worth it? | Does Opendoor pay a fair price? | Pros and cons | Should you sell to Opendoor? | FAQ
Opendoor is an iBuyer, which means it makes all-cash offers on houses and provides flexible closing timelines. Opendoor often pays less than sellers would get on the open market, and it charges a 5% service fee.
Compared to other iBuyers, Opendoor has reasonable fees and tends to make higher offers on houses. But competitors like Offerpad provide more flexibility on closing dates and repairs.
Opendoor is a great option for sellers who need to sell quickly to a proven buyer. But for sellers who prioritize getting the highest dollar amount for their home — and who have the time to wait for a higher offer — selling with a full-service real estate agent might be a better choice.
Is Opendoor worth it?
Opendoor is definitely worth looking into if you need to sell your home quickly with minimal hassle.
That said, it's unlikely that Opendoor will pay you as much as you'd get on the open market. Like most iBuyers, Opendoor makes lower offers than market value. It also charges a 5% service fee, which will limit your overall profits.
If you're considering an Opendoor offer, we strongly recommend using Clever Offers to request additional quotes from other iBuyers before you make a decision. You'll get matched with a top local agent who can field offers from companies like Opendoor and other cash buyers in your area.
Your Clever agent can compare these offers to a competitive listing price, giving you the knowledge you need to make the best decision.
Pros and cons of selling to Opendoor
If Opendoor is interested in your home, you’ll receive an offer within 24 hours.
You’re not likely to sell your home for as much as you would get on the open market.
The sale can close on your timeline, anywhere between 14–60 days after you accept the offer.
You have no control over the cost of repairs.
Guaranteed all-cash offers mean there's no risk of the deal unexpectedly falling through.
There's very little room to negotiate.
There's no fee for cancellation before closing.
The 5% fee may be more costly than a commission with a discount broker.
If you want to keep more of your home's equity in your pocket, consider listing on the open market with a full-service real estate agent from a discount brand.
Real estate agents generally charge 3% of the sale price when a home sells, but Clever Real Estate can match you with a top local realtor who charges a listing commission of just 1.5%, saving you thousands of dollars in commission when you sell your home!
💰 Find a top agent, save thousands in listing fees!
Comparing Opendoor offers
An offer from Opendoor is valid for seven days. You can use that time to compare its offer to other options.
If other iBuyers are in your area, get offers from them to compare. You can also consult a local real estate agent who can perform a comparative market analysis on your home. This analysis will give you an idea of what your home might get on the open market.
Does Opendoor pay a fair price?
Yes, according to an industry insider, Opendoor pays a fair price for homes. Real estate tech strategist Mike DelPrete found that in 2021 Opendoor consistently paid more for homes than its competitors in Phoenix, the largest iBuyer market in the U.S. Read our full Opendoor review here.
Opendoor isn't a house flipper and doesn’t seek out undervalued properties. It pays close to fair market prices. This means in sellers' markets, where there are more buyers than homes to buy, Opendoor will make even more competitive offers.
The best way to find out if Opendoor’s price is fair is by comparing its offer with a professional home valuation. An experienced real estate agent can estimate what you could sell for on the open market, which can help you decide if Opendoor's offer is worth it.
Does Opendoor negotiate?
Opendoor typically doesn't negotiate its offers or fees.
That said, if you don't agree with Opendoor or you think it has overlooked something, you can request a second evaluation and submit evidence to support a higher offer.
Unlike some other iBuyers, Opendoor allows you to back out of the sale without a penalty if you disagree with its final pricing.
» LEARN: Tips for negotiating with Opendoor
How much are Opendoor's fees?
Opendoor charges three types of fees:
Service fee: 5%
Repair costs: 1–2% (these may or may not be required)
Closing costs: 1–3% (these are typical seller closing costs)
Opendoor doesn't give you the option to use your own contractor for repairs, so you can't control the costs of repairs.
✍ Editor’s note: You might not make as much money selling your house through Opendoor as you would selling on the open market, even though the total costs with Opendoor (approximately 10%) are lower than with a traditional sale (approximately 11.2%). Opendoor generally pays less for homes than you'd get on the open market because it aims to resell each house quickly for a profit.
Here's a comparison of what you can expect to net from Opendoor, assuming you'd pay on the higher end of estimated fees, versus what you can expect from a traditional sale.
Full-service agent net
Opendoor’s fees add up to 10% of the sale price. Closing costs and repair costs vary by sale.
Homeowners pay 11.2% on average to sell their home, according to our research and analysis of real estate industry data. Commissions for the brokers and agents, repairs, and closing costs make up the majority of the costs.
Opendoor’s competitor Offerpad charges similar fees to Opendoor, but according to experts, it pays less (on average) for homes.
Does Opendoor pay closing costs?
No, you'll still be responsible for closing costs that are on par with a traditional sale.
You'll be expected to cover expenses such as title insurance, escrow costs, recording fees, notarization, transfer taxes, and more. In total, your closing costs will add up to 1–3% of the sales price.
» MORE: Opendoor vs. Offerpad: Which is better?
How quickly will I sell my home with Opendoor?
Opendoor can make an offer on your home in less than 24 hours, and it can close in as few as 14 days. That's much faster than the average time to close on a traditional sale, which is 83 days as of February 2023.
In other words, Opendoor's speed is a major advantage over the traditional home-selling model.
The benefit of Opendoor’s quick closing times isn't just speed for speed’s sake. In real estate, time really is money.
The time between reaching an agreement and closing a sale is often a difficult period when appraisals and contingencies can jeopardize a traditional sale. And as you wait to close, you still have to pay carrying costs — like your mortgage, insurance, and maintenance expenses.
Should you sell to Opendoor?
There's no universal answer — it depends on your situation and goals as a home seller.
Opendoor offers speed, simplicity, and convenience. These factors are invaluable to some sellers, especially since selling a home is such a high-stakes, complex process.
On the other hand, you may get more money for your home if you list it on the open market with a real estate agent.
A Clever agent can run the numbers for you, making it easier to determine which way to sell is best for you.
FAQ about Opendoor
Yes, Opendoor is a legitimate company. Although Opendoor may not pay your home's full market value, it makes all-cash offers that allow you to close on your sale in as few as 14 days. Read our full Opendoor review to learn more!
Opendoor typically pays slightly less than what your house would sell for on the open market, and it usually won’t negotiate. Since you have no obligation to accept an Opendoor offer, you can walk away if you decide it's not worth it.
Opendoor has a lot of pros compared to other iBuyers. It has reasonable fees (a 5% service fee) and often makes higher offers than other cash buyers. However, Opendoor could be considered too good to be true due to its drawbacks. When you sell with this company, there's very little room to negotiate, and you'll likely receive less money than you would by selling your home on the open market.
For sellers: The all-cash offer is guaranteed, so there's no risk of the deal falling through.
For buyers: Opendoor offers a 90-day buyback guarantee, which allows you to return a home that you purchased under certain conditions. If your home qualifies, you'll need to pay a 3% return fee, and Opendoor will refund the purchase price of your home minus any seller concessions, commission refunds, and repair costs.
Opendoor faced disciplinary action from the North Carolina Real Estate Commission in March 2022 due to broker misconduct in three different residential transactions. According to the commission, Opendoor brokers failed to disclose outstanding issues on the properties and, in some cases, falsely advertised certain features of the homes. The commission gave Opendoor 18 months of probation, along with 12 months probation to the two brokers involved in the violations.
In August 2022, the Federal Trade Commission took action against Opendoor for "cheating potential home sellers by tricking them into thinking they could make more money selling their home to Opendoor than on the open market" with a realtor. As part of its FTC settlement, Opendoor agreed to pay a $62 million fine.
Opendoor doesn't pay closing costs for the buyer or the seller. Learn more about how closing costs work with Opendoor.
Mike DelPrete. "iBuying is Hard: Zillow Pauses New Purchases."