Opendoor is an iBuyer that makes fast, all-cash offers on homes, but that speed comes at a cost. Sellers pay a 5% service fee, plus typical seller closing costs, which often include title, escrow, and transfer taxes.
In addition, after a home inspection, Opendoor deducts the estimated cost of repairs from its offer. That means your final payout could be significantly lower than expected.
Unlike traditional home sales, where the seller often covers the buyer’s closing costs or commissions as part of negotiations, Opendoor doesn't pay a buyer's agent commission by default. If the buyer has an agent, you may owe 2–3% of the sale price – a major hit to your bottom line.
Opendoor's fees and pricing model make it essential to compare offers. Don’t take the first number you see. Clever Offers lets you pit Opendoor’s offer against bids from vetted cash buyers and top local agents. You’ll get competing offers—fast—and potentially walk away with thousands more in your pocket. Get your cash offers now.
Opendoor fees for selling a house
| Fee type | Cost | Amount ($) |
|---|---|---|
| Service fee | 5% | $20,000 |
| Closing costs | 1-3% | $4,000-12,000 |
| Repair costs | Based on inspection | Varies |
| Late move-out fee | $2,000 deposit (+ $100-500 per day) | $2,100+ |
| Total cost | 7-10% | $28,000-40,000+ |
*Based on a $400,000 home sale price. Actual costs vary by location, home condition, and timing.
Here’s a more detailed breakdown of Opendoor fees, including what each charge covers, how much you can expect to pay, and how these costs compare to a traditional home sale.
Service fee
Opendoor charges a flat 5% service fee on every home sale. That’s $20,000 on a $400,000 house, before any repairs or other costs. This fee covers Opendoor’s operating expenses: purchasing the home, handling minor repairs, marketing it to buyers, and managing the resale.[1]
While that may sound similar to a traditional agent commission, sellers don’t get a real estate agent’s full-service support or price negotiation expertise in return.
Closing costs
Closing costs are an inevitable part of any property sale. Sellers also pay 1–3% in closing costs when working with Opendoor. These include title insurance, escrow fees, prorated property taxes, and transfer taxes, which vary by state and municipality.
In some states, sellers may also be responsible for attorney fees. While Opendoor doesn’t inflate these charges, they’re still unavoidable and often overlooked in the total cost.
Repair costs
Opendoor inspects every home after making an initial offer, and then deducts the cost of any needed repairs from that offer. You don’t get to hire your own contractor or negotiate the price.
Sellers often report being charged between 1% and 3% of the home’s value, with some facing deductions as high as $20,000. If you reject the revised offer, you can walk away without penalty. But if you accept, expect your net proceeds to drop fast.
Late checkout fees
Opendoor gives sellers two free days to move out after the closing date. Need more time? You’ll pay for it. Extended checkout costs range from $100 to $500 daily, depending on your home’s value and market.[2]
Some sellers have reported fees up to $750 per day. You’ll also need to put down a $2,000 security deposit, which is refundable if you leave the home in good condition.
Total cost
All in, sellers should expect to lose 7–10% of their home’s sale price to Opendoor fees. On a $400,000 home, that’s $28,000 to $40,000, possibly more if repair costs or late move-out fees pile up.
This is significantly more than what many sellers pay using a traditional agent or low-commission brokerage. Always compare offers before committing. A better deal could be one conversation away.
Opendoor fees vs. realtor fees
Let’s look at how much you would make selling a $400,000 house using Opendoor compared to both traditional and discount agents.
| Type of cost | Opendoor | Traditional agent | Discount agent |
|---|---|---|---|
| Sale price | $340,000-380,000 | $400,000 | $400,000 |
| Fees / commissions | $20,000 (5%) | $24,000 (6%) | $12,000 (3%) |
| Closing cost | $8,000 (2%) | $8,000 (2%) | $8,000 (2%) |
| Repairs | $12,000 (3%) | $12,000 (3%) | $12,000 (3%) |
| Profit to seller | $300,000-340,000 | $356,000 | $368,000 |
| *Figures are estimates based on a $400,000 home. Actual sale price and costs may vary depending on property condition, market demand, location, and service provider. Opendoor offer ranges reflect common price reductions due to convenience and repair costs. | |||
Opendoor fees: Key takeaways
Opendoor’s 5% service fee is similar to what you'd pay a traditional agent. However, sellers often walk away with less cash for two major reasons.
- First, Opendoor usually offers below market value, often 5–15% less, to account for resale risk, holding costs, and repairs. That discount is the trade-off for speed and convenience.
- Second, real estate agents help you maximize your home’s value. A good agent knows how to prep, price, and market your home to attract strong offers, often above asking. That support alone can add tens of thousands to your final sale price.
- Agents also negotiate. Opendoor doesn’t. Its offers and fees are take-it-or-leave-it, unless the company made a mistake. But agent commissions? Those are almost always negotiable.
If you want to save on commission while still selling for top dollar, consider working with a low-commission realtor. Many charge as little as 1.5% (half the typical listing fee), without cutting corners on service.
For example, Clever Real Estate pre-negotiates 1.5% listing fees with top local agents. You’ll get full-service support and expert guidance, and keep more of your home’s value. Want better profit without the hassle? Try Clever today.
Opendoor fees vs. competitors
| Company | Offer range | Service fee | Closing costs | Closing time |
|---|---|---|---|---|
| Opendoor | ~85% | 5% | 1-3% | As fast as 10 days |
| Offerpad | 70-80% | 5% | 1-3% | As fast as 8 days |
| Clever Offers | Up to 100% | None | Varies | Often under 7 days |
| Grandview Homes | Up to 70% | None | None | 7-10 days |
| We Buy Ugly Houses | Up to 70% | None | None | 2-3 weeks |
Opendoor and Offerpad are two of the largest iBuyer companies, offering fast home sales in exchange for a service fee. Both charge 5% in fees, plus standard seller closing costs of 1–3%. However, Offerpad also tacks a 1% cancellation fee if you back out after signing the contract, but Opendoor does not.
Offerpad typically closes as fast as 8 days, slightly faster than Opendoor’s 10-day minimum. That speed may appeal to sellers on a tight timeline, though some sellers report that Opendoor tends to make slightly higher offers, closer to 85% of market value, compared to Offerpad’s 70–80%.
Cash home buyer companies like Grandview Homes and We Buy Ugly Houses offer an even faster and more streamlined process. Grandview closes in 7–10 days, while We Buy Ugly Houses averages 2–3 weeks. Neither company charges a service fee or seller closing costs, but the trade-off is steeper: their offers often top out at 70% of your home’s fair market value, and prices are usually non-negotiable.
If you want to sell quickly but still get competitive offers, services like Clever Offers can help. It lets you easily compare offers from multiple vetted cash buyers – many ready to close in under a week. No service fees, no pressure, and a much better shot at getting close to market value. Fill out this short quiz to get cash offers today!
The bottom line: Is Opendoor worth it?
Opendoor makes home sales fast and easy—but it comes at a steep price. Between the 5% service fee, repair deductions, and discounted offer, you could walk away with tens of thousands less than your home is worth.
If you're in a rush and willing to pay for the convenience, Opendoor might make sense. But if you want to keep more of your equity, compare offers. A low-commission agent or a competitive cash home buyer could net you far more, without the surprise fees.
FAQ
Will Opendoor negotiate on its offer price?
Opendoor does not negotiate its offer price often. However, it is possible to request a second evaluation if the company made an error in the assessment or overlooked some significant improvements or features. Also, some clients mentioned that it is possible to successfully negotiate if you show a competing offer from another iBuyer.
How much does Opendoor make on homes it sells?
Opendoor states that it makes profits by charging service fees and does not publicly disclose the profits it generates through home sales.
Are there hidden fees when selling with Opendoor?
Opendoor does not have hidden fees and openly lists the costs on its website. However, some clients may be surprised when their final offer is lowered because of the high repair costs.
