For homeowners seeking a quick and hassle-free way to sell, Opendoor presents an enticing option. As a leading iBuyer, Opendoor makes instant cash offers, skipping steps like staging, showings, and waiting for buyer financing. The platform offers speed and convenience, ideal for avoiding the hassle of the open market.
But is Opendoor truly worth it for home sellers? High service fees and low offers can make it a costly choice. Many sellers earn more by exploring alternative methods, such as working with low-commission realtors or selling to cash home buyers. Understanding how Opendoor offers work—and how they compare to other options—is essential to deciding if it’s the right fit.
Want to maximize your profits? The best way to generate the highest bids and still sell for all cash is to use a cash buyer platform, like Clever Offers. You'll get introduced to local investors ready to buy your house today for cash, or you can use an agent to solicit bids and choose the best match for you. Answer a few quick questions to get competing offers today!
What does Opendoor pay for homes?
Opendoor’s offer process often raises questions about whether its convenience comes at a financial cost. By examining data from Bright MLS, we can gain insights into the percentage differences between the price Opendoor pays to purchase homes and the eventual resale prices. This data highlights the potential financial trade-offs for sellers.
| Opendoor Purchase Price* | Opendoor Sales Price | Percent 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 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.
Requesting an 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 any 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.
Factors influencing Opendoor’s offer
Several key factors influence the preliminary offer amount. Opendoor relies on data from recent comparable home sales, current market conditions, and detailed property characteristics, such as square footage, number of bedrooms, and lot size.
The home’s condition plays a significant role. Properties that require fewer repairs or feature sought-after upgrades—such as a renovated kitchen or updated HVAC system—are more likely to receive competitive offers. Homes in disrepair or with deferred maintenance may see lower offers to account for anticipated costs.
Inspection and final offer
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.
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 costs and typical 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.
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.
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.
- Some praised the platform's quick, hassle-free process and competitive offers, particularly for homes in varying conditions. They highlighted how Opendoor simplified the selling process by providing decent prices without requiring extensive repairs.
- However, others raised concerns about low offers, predatory practices, and dishonesty. Complaints included significantly below-market offers, aggressive price reductions after inspections, and allegations of deceptive advertising. One user even reported receiving far less than the appraised value, prompting them to file a complaint with authorities.
Despite these criticisms, a few users highlighted the importance of comparing offers and carefully weighing the trade-offs between a fast sale and potentially higher returns through traditional methods.
Overall, while Opendoor works for some, some users strongly cautioned against using the service without thorough research and consideration of other options.
This thread highlights why it's so important to compare Opendoor's offers to what you'd earn selling with a low-commission realtor or other iBuyers.
Should you sell to Opendoor?
When deciding whether Opendoor is the right choice for selling your home, there are several important questions to consider.
First, how quickly do you need to sell? If time is of the essence, Opendoor can offer a fast and straightforward sale. However, if you’re occupying the house, you should also consider how quickly you can move out, as Opendoor charges fees for extra days in the house after closing.
Next, consider your financial goals and your home’s condition. If your home requires significant repairs, Opendoor may be a good option, as they will purchase homes in various conditions without requiring repairs or showings. But if you’re hoping for top-dollar, traditional sales may yield higher returns (though they require more time and effort.)
Lastly, think about whether you can accommodate the logistics of traditional sales. Can you handle buyer showings, open houses, staging, and cleaning, or would you prefer to avoid the hassle? If you’re willing to invest the time and effort, traditional MLS sales could be a more profitable route, especially if you can wait for the right buyer.
» Want to sell fast without sacrificing profit? Cash buyers offer many of the same benefits as iBuyers like Opendoor, and could pay closer to fair-market value.
Clever Offers connects you with local investors ready to buy homes like yours and close quickly. Your best bet: Compare cash offers to Opendoor offers to ensure you get the best deal. Take this quick quiz to get started and see how much your home could sell for!