How Much Does Opendoor Really Cost? A Guide to Opendoor Fees
Jump links: Opendoor fees | Opendoor vs. realtors | Opendoor vs. competitors | FAQ
Opendoor is an iBuyer that buys homes quickly directly from sellers. It can work well for sellers who value speed: Opendoor can close on a home in as few as 14 days and charges a 5% service fee, in addition to closing costs. Opendoor could also lower its offer price if it determines the home needs additional repairs.
As with any cash buyer, sellers should compare offers between multiple buyers to determine which deal will work best for them. Clever Offers can help you do just that. It lists your home on the open market for just 7 days, and you’ll attract serious buyers—many offering cash—who are ready to close quickly. Get your cash offers today!
Opendoor fees for selling a house
Here's a breakdown of all Opendoor fees a seller would pay. To simplify it, we provide examples of the cost when selling a $400,000 home.
Type of fee | Cost | Amount ($) |
|---|---|---|
Service fee | 5% | $20,000 |
Closing costs | 1-3% | $4,000-$12,000 |
Repair costs | Depends on the home’s condition | Varies |
Late checkout fees | $2,000 security deposit + $100-500 a day | $2,100+ |
Total | 7-10% | $28,000-40,000 |
Service fee
Opendoor’s service fee is set at 5%. This fee is meant to cover the cost of purchasing, some repairs, marketing the home for sale, and selling it to a new owner.[1]
Closing costs
Closing costs are an inevitable part of any property sale. Typically, Opendoor’s closing costs amount to between 1-3% of the home’s sale price for a seller, depending on your location. Closing costs include various fees and taxes, including title review and insurance, transfer taxes, and attorney fees (if applicable).
Repair costs
The cost of repairs may be the most difficult to assess. Every house is as unique as every homeowner, who have different home maintenance budgets and schedules. Some sellers face additional costs around repairs when they decide to work with Opendoor.
A week after the initial offer, the company may adjust the final offer based on the estimated cost of needed repairs. Opendoor deducts the repair cost from the original offer price. Sellers do not have the opportunity to negotiate the cost of repairs, but you can cancel the contract with no extra charges.
Typically, sellers claim to pay 1-3% in repairs when working with Opendoor, and the estimated repair price ranges from a few thousand dollars to $20,000 across their reviews.
Late checkout fees
Opendoor offers complimentary late checkout for up to two days, but it’s possible to extend it for up to 17 days for a fee.[2] The cost depends on the price of the house, but clients mentioned quotes between $100 and $500 per day, and even up to $750 in some cases. Also, you will be charged a $2,000 security deposit that should be refunded when you move out.
Total cost
Overall, expect to pay 7-10% in Opendoor fees,, and additional late checkout fees if you need to stay for a few days longer. If you sell a $400,000 house, this adds up to $28,000-40,000 on average.
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 |
*Estimates are based on averages and may vary based on individual circumstances, market conditions, and other factors. Repair costs, service fees, and closing costs may differ based on the property and location. | |||
Key takeaways and considerations
The Opendoor service charge is comparable to what you would pay using a traditional realtor. However, sellers can potentially make more on the home sale by working with a professional for two reasons:
- According to some sellers who used Opendoor, the company buys houses for a price slightly lower than the market average. The difference can be anywhere from 5% to 15% and is a tradeoff for the sale’s speed and convenience.
- A real estate agent with knowledge of the local market will help you prepare the home for sale, price it properly, and assist with marketing. This way, you are less likely to sell your property for lower than its fair-market value.
While selling with an agent involves some costs and realtor fees, the higher profit from the sale could offset their commission and ultimately make you more money.
Finally, Opendoor is not likely to negotiate the sale price (unless it made an error in calculations) and the 5% service fee. But it’s fairly common for sellers to successfully negotiate realtor’s fees before signing a contract.
By working with a discount broker, sellers can list their home at its full-market value (and possibly sell it for even more) without paying 3% commission to their real estate agent. Discount brokers (also known as low-commission realtors) might charge 1.5% instead of 3%, saving the seller $6,000 in commission fees while providing the same level of service as a full-price real estate agent.
For example, Clever pre-negotiates a 1.5% listing fee with top-rated local agents, so you get the best rate without negotiating it yourself. Get full-service support at a fraction of the typical cost, keeping more of your profit while enjoying expert guidance. Try Clever Real Estate today.
Opendoor fees vs. competitors
Offerpad is another large iBuyer and Opendoor’s main competitor.
Company | Service fee | Cancellation fee | Closing costs | % of market value |
|---|---|---|---|---|
Opendoor | 5% | None | 1-3% | Around 85% of the market value |
Offerpad | 5% | 1% | 1-3% | 70-80% of the market value |
Overall, the companies have a similar business model and charge the same service fee. However, Offerpad charges a 1% cancellation fee if the seller decides to back out of the contract. Also, a few clients have mentioned that Opendoor offers higher prices for homes.
Offerpad does have a shorter closing time after the offer (minimum of eight days vs. 14 days for Opendoor), which could be more attractive to some sellers. So you can compare both offers and see what works best for you.
Cash home buyer companies are another option when you don’t want the hassle of showings and marketing and need to sell your home quickly. Most of them have a faster closing time than Opendoor after sending an offer and do not charge service fees.
The biggest drawback of “we buy houses” franchises is the difference between their sale price and the market price — some buy properties for only up to 70% of their value and do not negotiate the price.
However, services like Clever Offers or HomeLight Simple Sale match sellers with a couple of interested cash buyers. This way, you can get multiple offers and get the most out of your home sale.
The bottom line: Is Opendoor worth it?
The answer depends on your goal. If you are looking to sell a house quickly and don’t want to deal with marketing and showings, Opendoor could be an option worth considering. For example, if you are relocating for a job or have inherited an unwanted house in a different state.
However, if you don’t want to lose money on the sale, it could be a good idea to explore some other options. Working with a low commission realtor, you can save on the realtor’s commission while still getting all the benefits of professional guidance and support.