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 additional deductions for any repairs or improvements determined by Opendoor. The fees are on top of typical closing costs, such as title, escrow, and transfer taxes.
The biggest financial tradeoff of selling to Opendoor is the potential profit loss compared to an open market sale. While homeowners who sold to Opendoor during the pandemic often received offers offers in line with market value, more recent data (coupled with customer reviews) indicates that the company's offers are well below estimated home values.[1][2]
Before accepting Opendoor's offer, be sure to have an accurate idea of your home value. That way, you'll know exactly how much money you're leaving on the table. You should also look at offers from a few iBuying competitors to make sure you're getting the best possible terms.
An offers marketplace like Clever Offers can save you a ton of time sourcing offers and figuring out your best options — which is why it's our top-rated Opendoor competitor. Compare the highest cash offers for your home and sell in as little as 7 days — no added fees or pressure to move forward.
Opendoor fees for selling a house
| Fee type | Cost | Amount ($) |
|---|---|---|
| Service fee | 5% | $20,000 |
| Closing costs | ~1% | $4,000 |
| Repair costs | Based on inspection | Varies |
| Late check-out fee | $2,000 deposit + daily rent | $2,100+ |
| Total cost | 7-10% | $28,000-40,000+ |
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, marketing it to buyers, maintaining it during the listing period, and managing the resale.[3]
While that may sound similar to a traditional agent commission, sellers don’t get the return they would get from listing with an agent. The service fee is on top of an already discounted sale price.
Closing costs
Closing costs are an inevitable part of any property sale. These include title insurance, escrow fees, prorated property taxes, and transfer taxes, which vary by state and municipality. Sellers usually pay about 1% in closing costs when working with Opendoor, although it could be more if you have an HOA or live in a state that requires an attorney to be present at the closing.
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 or home prep 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 $30,000. 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.[4]
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 | $4,000 (1%) | $4,000 (1%) | $4,000 (1%) |
| Repairs | $8,000 (2%) | $6,000 (1.5%) | $6,000 (1.5%) |
| Profit to seller | $308,000-348,000 | $366,000 | $378,000 |
| *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, fees, and repair deductions 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.
Opendoor fees vs. competitors
| Company | Service model | Service fee | Closing costs | Closing timeline |
|---|---|---|---|---|
| Opendoor | Direct cash offer (~85–95% of market value) | 5% | ~1% | As fast as 10 days |
| Offerpad | Direct cash offer (~85–95% of market value) | 8% | ~1% | As fast as 8 days |
| Clever Offers | Compare multiple offers and sell-fast solutions | None | Vary by buyer | 1–3 weeks |
| HomeLight Simple Sale | Compare multiple offers and sell-fast solutions | None | Vary by buyer | 1–3 weeks |
| Grandview Homes | Direct cash offer (~65–75% of market value) | None | None | 1–3 weeks |
| We Buy Ugly Houses | Direct cash offer (~65–75% of market value) | None | None | 1–3 weeks |
Opendoor and Offerpad are two of the largest iBuyer companies, offering fast home sales in exchange for a service fee. Both companies used to charge a 5% service fee, but Offerpad recently changed its iBuying model and now charges as much as 8% for a cash offer.
The company also requires you to meet with a HomePro (i.e., a real estate agent) to go over your various selling options, while Opendoor offers a more streamlined approach that can be handled mostly online.
Offerpad has a more flexible closing window of 8–90 days (compared to Opendoor's 10–60 day window) — though some sellers report that Opendoor makes slightly higher offers and charges less for repairs.
Cash home buyer companies like Grandview Homes and We Buy Ugly Houses offer a similarly quick closing process, allowing you to sell for cash in as a little as 1–2 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. However, you'll know your final offer amount upfront.
If you want to sell quickly but still get competitive offers, services like Clever Offers can help you easily compare offers from multiple vetted cash buyers – many ready to close in just a week. There are no added service fees — just a better shot at getting close to market value, since you'll have multiple offers on the table.
HomeLight Simple Sale is another marketplace that can connect you with local investors, but you'll be automatically paired with local listing agents also, which doesn't suit every home seller.
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 your options. A low-commission brokerage or a competitive cash home buyer could net you 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.
