Opendoor cash offers promise speed and convenience for home sellers, but at a cost. The iBuyer skips showings and financing delays by making quick all-cash offers on homes. It sounds ideal for sellers in a rush, but high service fees and below-market offers can leave thousands on the table.
Before you accept an Opendoor cash offer, it's best to compare your options. Many sellers earn more by using low-commission realtors or selling directly to other cash home buyers.
Want the best price for a fast all-cash sale? Clever Offers lets you compare bids from vetted local investors and top agents, so you get the strongest offer with zero pressure. Answer a few simple questions to get started today.
Opendoor cash offer breakdown
We analyzed Bright MLS data from 2022 to 2024 and found that Opendoor resold homes for 5.6% more on average than it paid sellers. That margin, up to 72% in some cases, represents potential profits sellers might miss out on.
| Opendoor Purchase Price* | Opendoor Resale Price | % Difference | Price Difference |
|---|---|---|---|
| $538,832 | $561,729 | 5.64% | $22,896 |
| *Based on a Clever Real Estate analysis of Bright MLS data of Opendoor purchases and sales between December 2022 and September 2024. | |||
Average offer as a percentage of market value
Opendoor's average purchase price is $538,832, with individual offers ranging from $145,300 to $1,076,300. While these purchase prices often include a small premium over market value, there are notable variations in how closely they align with actual resale values.
Difference in purchase vs. resale price
On average, homes resold for $562,411, reflecting a modest increase over the purchase price. The "purchase-to-sale premium" averaged 5.6%, but varied widely, with losses of 18.5% to gains of 72.1%. These trends highlight Opendoor’s inconsistent performance in managing resale margins.
Trends from 2023-2024 data
While 2023 saw more homes selling at or above their purchase price, 2024 reflects a trend of narrowing premiums, suggesting adjustments in Opendoor’s pricing strategies to align with market conditions.
Case studies from Bright MLS data
- High-performing sale: A home purchased at $826,000 in June 2024 was resold for $890,000, reflecting a gain of $64,000.
- Loss-making example: Another property purchased at $631,500 in April 2024 was resold for only $585,000, marking a significant loss of $46,500.
- Close-to-market offers: Several instances show Opendoor purchasing homes at prices within 1-2% of the market value, providing sellers with fair value and minimal price cuts.
Understanding Opendoor’s offer 'haircut'
- The average percentage reduction between purchase price and resale price was 5.6%.
- This reduction demonstrates Opendoor’s focus on liquidity and convenience, albeit at a cost to sellers who might prioritize market value.
These findings illustrate the trade-offs for sellers using Opendoor, highlighting scenarios where speed and convenience outweigh potential financial gains.
How the Opendoor cash offer process works
Selling your home to Opendoor involves a straightforward, tech-driven process prioritizing speed and convenience. Below is a step-by-step breakdown of how the offer process works, including key factors influencing offers and adjustments that may occur before the final purchase price.
1. Request a cash offer
To begin, sellers provide basic property information on Opendoor’s website or app. The process is quick, requiring details like the home’s address, size, age, and recent upgrades. Using this information, Opendoor generates a preliminary cash offer within 24 to 48 hours, making it one of the fastest ways to gauge your home’s value.
The preliminary offer gives sellers a sense of what Opendoor is willing to pay, but it’s not final. The company uses advanced algorithms and data from recent home sales to estimate the property’s market value, giving sellers an informed starting point.
2. Review your preliminary offer
Opendoor bases its preliminary offer on several key factors, including recent comparable sales, local market trends, and specific property details like square footage, number of bedrooms, and lot size.
The home’s condition also matters. Properties in good shape or with upgrades, such as a remodeled kitchen or new HVAC, tend to receive stronger offers. Homes needing repairs or showing signs of neglect often get lower offers to account for renovation costs.
3. Schedule an in-person inspection
Once a seller accepts the preliminary offer, Opendoor schedules an in-person inspection to evaluate the home’s condition. During this assessment, an Opendoor representative checks for necessary repairs or maintenance issues, such as roof damage, plumbing problems, or outdated systems.
4. Receive your final offer
Repair costs identified during the inspection are deducted from the preliminary offer, reducing the amount Opendoor will pay for the home. For example, if the inspection estimates $5,000 in repairs, this amount is subtracted from the initial offer.
Sellers should anticipate other deductions in addition to repair costs. Opendoor charges a service fee of approximately 5% to cover operational and closing costs, which can amount to around 1% of the sale price. These deductions ensure that Opendoor can resell the home profitably, but they also impact the final amount sellers receive.
5. Close and move out
Once you accept the final offer, you can close in as few as 7–14 days. If you're still living in the home, remember that Opendoor may charge daily occupancy fees if you stay after the closing date.
Is Opendoor’s offer process right for you?
While Opendoor’s process is efficient and user-friendly, sellers should weigh the trade-offs.
For those who value speed and certainty, accepting Opendoor’s offer can be a stress-free way to sell a home. However, sellers aiming to maximize their profit may find that the deductions and adjustments make other selling methods, such as working with a traditional or low-commission realtor, more appealing.
To explore alternatives, check out this list of Opendoor competitors, highlighting other services that may better suit different seller priorities.
After receiving a cash offer, sellers can list their home on Opendoor’s private marketplace for 14 days. If it doesn’t sell, the home moves to the MLS, and Opendoor increases its offer by $5,000 if it remains unsold after 30 days. Buyers using Opendoor Exclusives also benefit from appraisal gap coverage of up to $50,000.
However, the program is limited by market availability and property condition. While “as-is” homes may qualify, they compete with move-in-ready properties that typically attract more buyers.
For more flexibility, programs like Clever Offers’ 7 Day Sold program help sellers compare multiple cash offers while minimizing fees and timelines. Answer a few quick questions about your property, and Clever will get you the best possible deal for your home.
Reddit users share mixed experiences
In a Reddit thread from 2024, users shared mixed experiences with Opendoor.
✅ Positive experiences
Many sellers appreciated the speed, simplicity, and surprising offers they received. They highlighted how Opendoor simplified the selling process by providing decent prices without requiring extensive repairs.
“I thought the process was a bit too easy and too good to be true… but Opendoor saved me almost $100K.”
“They paid me $2.1M and sold it for $1.9M. The offer was as good as my agent's price estimate—and I avoided all the hassle.”
⚠️ Negative experiences
But not all experiences were positive. Some users warned of lowball offers, aggressive post-inspection price cuts, and what they described as misleading practices. One seller claimed they were offered far less than their home’s appraised value and ultimately filed a complaint with state authorities.
“Their initial offer was $397K, then dropped to $351K before fees. After repairs and the 5% fee, it was $315K for a home Zillow valued at $430K.”
“I was offered $370K and ended up with $350K after fees and repairs. I needed to sell fast, but it still felt like a loss.”
Key takeaway: Compare offers first
Reddit users agree on one thing: Always compare your Opendoor cash offer with other options, especially local cash home buyers or low-commission agents.
Overall, while Opendoor works for some, some users strongly cautioned against using the service without thorough research and consideration of other options.
Should you accept an Opendoor cash offer?
Before accepting an Opendoor cash offer, weigh these three key considerations:
- Can you manage a traditional sale? Listing on the MLS typically involves cleaning, staging, showings, and waiting for the right buyer. If that sounds overwhelming, Opendoor could be a convenient alternative—even if it means accepting a lower offer.
- How fast do you need to sell? Opendoor offers a quick, hassle-free sale, ideal if you're in a time crunch. But if you still live in the home, be prepared to move out quickly. Opendoor charges daily occupancy fees if you stay past the closing date.
- What are your financial goals? If maximizing your sale price is a priority, a traditional listing may deliver better results. However, if your home needs major repairs, Opendoor might save you the upfront costs and effort of fixing it or staging it for showings.
Still not sold on Opendoor? Cash buyers offer many of the same benefits as iBuyers, such as Opendoor, and can pay closer to fair-market value. Compare multiple cash offers with Clever Offers to see how Opendoor stacks up against other buyers. It’s fast, free, and could help you walk away with more money.
