Is Opendoor Worth It? What You Need to Know Before Selling

Opendoor is a leading iBuyer and offers homeowners a hassle-free way to sell their homes. Instant cash offers streamline the selling process by eliminating the need for traditional showings, negotiations, and the uncertainty of waiting for the right buyer.

However, this convenience comes with a trade-off. While Opendoor offers an appealing solution for those needing to sell quickly, you might not make as much money selling to Opendoor as you would on the open market. Opendoor’s service fees and repair costs, coupled with offers that may be below market value, mean that sellers could leave money on the table when they work with Opendoor.

The bottom line: If maximizing your sale price is your goal, other options, like cash buyers or low-commission agents, may be better choices for you.

Pros and cons of selling to Opendoor

Opendoor simplifies the home-selling process, making it an attractive option for homeowners seeking convenience. Sellers can avoid the typical stress of showings, repairs, and negotiating with buyers.

Sellers can choose a closing date that fits their schedule. Opendoor also provides offers for eligible properties that are often more competitive than offers from traditional investors.

However, there are potential drawbacks to consider. Sellers frequently receive less profit than they might be able to capture with a traditional listing. Opendoor’s service fees and repair deductions can significantly reduce net proceeds.

The company also limits the types of properties it purchases, excluding homes in poor condition or those outside its service areas. According to Opendoor’s help center, “We typically buy homes with an Opendoor offer price between $100K and $600K, but we can buy homes worth much more. This varies by area.”[1]

For homeowners who value speed, ease, and flexibility above all else, Opendoor can be a solution. However, sellers prioritizing profit may want to explore other options, such as listing with a low-commission agent or seeking competitive offers from cash buyers.

Get the best deal for your home fast with Clever Offers. Connect with a network of trusted real estate investors ready to give you competitive cash offers. Compare these offers with the open market to make sure you’re making the most profitable choice for your home sale. Fill out this short quiz to get started!

How much does Opendoor pay for homes?

Opendoor typically offers between $100,000 and $600,000 for homes. It determines offer prices based on comparable home sales and details about the house itself, such as its location, size, and condition.

The company also considers broader market conditions, such as local demand and housing inventory. This data-driven approach allows Opendoor to provide sellers with an initial cash offer quickly.

Opendoor’s business model is to buy homes and then resell them for a profit after factoring in service fees, repair costs, and other expenses. This means that Opendoor offers may not reflect the full potential value that a seller might achieve on the open market, particularly in competitive areas.

Recent data analysis by Clever Real Estate, using Bright MLS home sale data from December 2022 through September 2024,  shows that Opendoor resells homes for prices higher than their initial purchase amounts, though the margin varies.

For example, the average difference between purchase and resale prices ranged from $12,298-34,201. Additionally, the percentage of homes that Opendoor sold for less than it spent to purchase them was 15.07% between January and September 2024.

How much does Opendoor charge in fees?

Opendoor charges a standard 5% service fee, which covers the convenience of its streamlined process. After an inspection, Opendoor deducts the estimated cost of necessary repairs. This can vary widely depending on the condition of the home, typically ranging from $2,000-10,000.

Sellers are also responsible for standard closing costs, which are often around 1% of the sale price. For a $400,000 property, this would be approximately $4,000 and would include title and transfer fees.

If sellers need extra time to vacate the property after closing, Opendoor may charge a daily fee, which can range from $100 to $750, depending on the location and circumstances.

For a $400,000 home sold through Opendoor, the estimated costs can add up quickly. The standard 5% service fee alone accounts for $20,000, and repair deductions can range between $2,000 and $10,000, depending on the home’s condition. Closing costs typically add another $4,000, while any late checkout fees — ranging from $100 to $750 per day — could further increase the total costs.

If you want to sell quickly to a cash buyer without having to list on the open market, and you’re interested in maximizing your profit, consider Clever Offers 7-Day Sold. Cash buyers in your area will have a week to send you their highest and best offer for your home. You can choose one that works for you, or walk away with no cost or obligation. Get started with a quick quiz!

What do Opendoor reviews say?

Opendoor reviews reflect the trade-offs of its streamlined approach.

Many sellers appreciated the fast and reliable cash offers. Customers also praised the transparency and simplicity of the selling process, the flexible closing dates, and the ability to avoid home showings and repairs.

Negative reviews often focused on high service fees, unexpected repair deductions, and offers significantly below market value. Many customers reported frustration with lowball offers or substantial discrepancies between initial and final offers.

Additionally, some reviewers criticized Opendoor’s limited negotiation options and occasional lapses in customer service, such as canceled contracts or unresponsive representatives.

Can you negotiate with Opendoor?

Opendoor generally operates on a take-it-or-leave-it pricing model, meaning most offers are final. However, there could be limited opportunities to negotiate in certain situations.

Strategies for negotiation

• Compare offers: Sellers can present competing offers from other iBuyers, such as Offerpad, to see if Opendoor will adjust its offer.
• Review repair costs: If repair deductions seem excessive, sellers can request a second inspection or ask for a detailed cost itemization.

Before accepting any offer, it’s critical to explore all your options, from iBuyers to cash buyers to selling on the open market.

After getting your offer from Opendoor, using a service like Clever Offers can help you find cash buyers in your area who are ready and able to buy your house today. It’s a fast and easy way to get competing quotes from multiple buyers without commitment, maximizing your selling power.

How quickly can you close with Opendoor?

Opendoor can close in as few as 15 days, significantly faster than traditional sales, which often take 30-60 days or more to finalize.

• Quick offer timeline: Sellers receive an initial cash offer within 24 hours, and closings can happen as quickly as 15 days after offer acceptance.
• Flexibility: For sellers who need more time to plan their next steps, Opendoor offers the option to delay closing for up to 60 days.

A quicker closing process can help sellers save on carrying costs like mortgage payments, utilities, and property taxes.

The bottom line: Is Opendoor worth it?

Sellers with homes in good condition who value convenience and are willing to accept a potentially lower profit may find Opendoor’s services particularly appealing.

However, for those focused on maximizing their financial return, traditional listing options or cash buyer networks like Clever Offers, which provide multiple quotes and don’t charge service fees, may be better alternatives. While these approaches may take longer, they can ultimately result in higher net proceeds for sellers.

Want to sell quickly for cash and get the best price for your house? Clever Offers 7 Day Sold program markets your home to cash buyers in your area for seven days, so you can compare offers and choose the one that works best for you – while still closing quickly. Answer a few quick questions to get started!

FAQ