Opendoor Reviews: Ratings, How it Works, and FAQs

· Yes, Opendoor is legit. It is a real estate company that buys homes for cash, and it's available in 47 markets across the US. Opendoor's fees 

Who should use Opendoor? | Is Opendoor legit? | Top Opendoor competitors | How it works | Find Opendoor reviews from real customers

iBuyers like Opendoor are a great option if you’re looking for a fast, convenient home sale. Opendoor generally pays more and has lower fees than its competitors — and it’s available in the most cities.

That said, Opendoor won’t be an option for most sellers. Even if you’re in one of the 45 U.S. cities it operates in, most homes won’t qualify due to its strict purchase criteria.

If you sell to Opendoor, you’ll likely trade convenience for price. Like other iBuyers, Opendoor typically pays less for your home than you’d make by selling with a traditional real estate agent.

To make sure you get a fair price for your home, we recommend getting additional offers from other local iBuyers before you sign a contract with Opendoor. It’s also a good idea to ask an experienced realtor what your house is worth on the open market.

Clever Offers is a great option for sellers who want a quick, all-cash home sale. Clever will match you with a top local realtor, who will bring you offers from local iBuyers like Opendoor. You’ll also receive a free expert home valuation, so you can be confident you’re getting a fair price for your house. Get fair cash offers from local iBuyers now!

Who is Opendoor best for?

If you need to sell your home quickly and Opendoor is available in your area, it’s worth getting an offer from the company to see how it stacks up against other iBuyer offers and a realtor’s professional opinion on the value of your home.

However, we don’t recommend Opendoor to home sellers who want to sell their home for top dollar. Like most iBuyers, the company typically makes offers that are less than market value. Selling on the open market takes longer, but you’ll typically make more money from the sale.

To compare offers from Opendoor and other iBuyers, we recommend using Clever Offers. A local realtor will gather cash offers for you and present them alongside your home’s current value on the open market — so you can get a fair price and choose the option that’s best for you.

Is Opendoor legitimate?

Yes, Opendoor is legit. It is a real estate company that buys homes for cash, and it’s available in 47 markets across the US.

Opendoor’s fees represent their carrying and resale costs; after all, their business model is to turn around and sell your house. Every day Opendoor owns a home while it looks for a buyer costs money in taxes, marketing, utilities, and other expenses.

Opendoor purchases homes at much higher volume than its competitors: In 2020, it bought nearly twice as many homes as its nearest competitor, Zillow.2Source:Mike DelPrete. Offerpad and its More Profitable Flavor of iBuying. June 9, 2021 The company’s sheer size means it can afford to extend the fairest cash offers, since it can make up in volume what it may leave on the table in individual transactions.

Opendoor is a modern, tech-savvy company with national reach, and is much more legitimate than the companies who put up “We Buy Houses for Cash” signs on telephone poles.

Top Opendoor alternatives of 2022

Sellers who want to bypass the traditional market have plenty of options. Since Opendoor pioneered the iBuyer industry, dozens of competitors have appeared.

Read on for a better look at the key differences between Opendoor and some of its competitors.

1. Offerpad

Offerpad is the best alternative to Opendoor because it has a similar business model but offers more flexibility on closing dates and repairs.

Offerpad is an iBuyer that provides cash offers within 24 hours. Like Opendoor, Offerpad requires an inspection and possibly repairs.

However, Offerpad provides more flexibility around closing, with a closing date window of 8-90 days, compared with Opendoor’s 14-60 days. It’s a good option for sellers who have a very specific window in which to sell.

In addition, Offerpad allows you to choose between deducting the repair costs, hiring a contractor yourself, or declining the repairs altogether. Opendoor doesn’t give you these options, so you don’t have any control over how much the repairs cost.

Read more: What You Want to Know to Pay off Your PPP Mortgage – KServicing

» MORE: Our complete review of Offerpad

2. RedfinNow

If you’re selling a home that’s older or in poor condition, chances are it won’t qualify for an offer from Opendoor — but you may be able to sell to RedfinNow.

RedfinNow will purchase homes with a broader criteria than most iBuyers, including vacant homes and other properties built after 1930.

However, RedfinNow has high service fees — up to 13% — compared with Opendoor’s 5% fee.

» MORE: Our complete review of RedfinNow

3. We Buy Houses companies

Like iBuyers, We Buy Houses companies will purchase your home for cash. However, their purchase criteria are typically less stringent — so if you’re selling a home that’s in poor condition or needs repairs, a We Buy Houses company might be a good choice.

However, some cash buyer companies often pay as little as 50% of fair market value — much less than iBuyers. If your home qualifies for an offer from Opendoor or one of its competitors, you’ll almost always make more money than selling to a We Buy Houses company.

Opendoor pros and cons

Pros of Opendoor: Opendoor allows you to choose your closing date within 14-60 days, which is ideal for sellers on a strict timeline.

In addition, Opendoor will manage all the repairs that are needed on your home, so you don’t have to worry about coordinating extra work.

Cons of Opendoor: The biggest drawback to using Opendoor is that the company likely won’t pay as much for your home as you’d receive on the open market.

Another drawback is that Opendoor has very strict criteria about what types of homes they purchase. If your home is older or needs extensive repairs, it likely won’t qualify for an offer.

Even if your home qualifies for an Opendoor offer, we recommend talking to a real estate agent to figure out how much your home is worth. This will allow you to compare and decide if Opendoor’s offer is right for you.

Many agents also have relationships with other local iBuyers. A great local agent can help request cash offers from trustworthy local iBuyers (and avoid companies that are just going to lowball you). Comparing multiple offers is the best way to sell your home on your timeline for top dollar.

How does Opendoor work?

👉 Facts and stats | Selling to Opendoor | Buying from Opendoor

You can sell your home to Opendoor using the company’s iBuying service, but you can also buy an Opendoor home or even trade-in for a new home using Opendoor Complete.

Selling to Opendoor

You can request an offer on Opendoor’s website by simply providing your address, a photo of your home, and some basic information about your property’s size, condition, and features.

Opendoor then evaluates your home. If your property qualifies, they’ll provide an offer based on their formula for pricing homes and input from local pricing experts. Typically, Opendoor delivers its offer within 24 hours.

To fine tune your offer, Opendoor will ask you to set up a virtual walk-through of your home via video call, then schedule an exterior inspection. Once these are complete, you’ll receive a final offer that includes deductions for repairs.

You can negotiate with Opendoor over the offer, but it’s not likely they will update the offer unless they missed a big selling point or made an error in the local market valuation. If you accept the offer, you’ll sign the purchase agreement and pick a closing date within 14-60 days. You’ll receive cash for your home within a few days of closing.

Opendoor purchase criteria

Not all homes will receive an Opendoor offer. The company’s typically only interested in buying homes that meet specific criteria.

Read more: 2022 State Tax Reform & State Tax Relief | Rebate Checks

Opendoor will not present an offer for your home if it is a mobile/prefabricated home or located in a flood zone.

Where does Opendoor buy homes?

Opendoor currently purchases homes in 47 markets across the country, including:

  • Phoenix
  • Atlanta
  • Houston
  • Los Angeles

Even though Opendoor is active in 47 markets, it doesn’t offer all its services in every market. You can see a complete list of markets and the available services here.

Buying from Opendoor

If you find a property you like after viewing homes on the Opendoor app or website, you can arrange a showing any day of the week between 6 a.m. and 9 p.m.

Opendoor uses lockboxes that allow you to do an independent, unassisted showing, although you do have the option of scheduling a showing with a tour assistant, if you’d like.

Once you settle on a property, you can choose between using Opendoor Home Loans, the company’s in-house mortgage lender, or you can find your own lender. If you have time to shop around for a mortgage, you might be able to lock in a better rate than you’d get with Opendoor Home Loans.

You can make an offer online, through the app, or through an agent. If you decide not to work with an agent, Opendoor will help you navigate the closing process. Finally, you can choose a closing date within 14-45 days.

Opendoor fees

Opendoor’s fee is 5% of your home’s sale price, which is slightly lower than conventional real estate agent commissions of 6%. However, the service charge isn’t the only cost you incur if you use Opendoor. The total cost ranges from 7-10% including closing costs and repair deductions.

For example, if you sell a $300,000 home to Opendoor, your total selling costs (including the service fee) will be $21,000-30,000. But you won’t need to spend any money out of pocket since all of these fees are deducted from the proceeds of the home sale.

Opendoor vs. realtor costs

If you use a real estate agent to sell your home, you’ll usually end up paying about 6% for listing agent commission, 1-3% for seller concessions, and another 1-3% for closing costs. This works out to about 8-12% vs. 7-10% with Opendoor.

However, selling on the open market could mean having multiple prospective buyers driving up the purchase price with competing offers, likely leading to higher net earnings from your home’s sale. You can even work with a discount broker to list your home for a reduced fee and maximize value.

Our friends at Clever Real Estate can connect you with a top agent in your area who only charges a 1% listing fee. That’s thousands in savings compared to selling with Opendoor!

Opendoor reviews from real customers

Most Opendoor reviews from customers are positive, with an average rating of 4.3 / 5 across 2718 reviews.

We found that many positive Opendoor reviews focused on the speed and simplicity of selling to Opendoor. Other reviewers found the closing timeline convenient.

Some reviews, including ones that were mostly positive, mentioned a lack of communication between Opendoor and the customer. Other Opendoor complaints included complications with third-party companies, like the escrow service used for closing.

Fred from Charlotte, N.C. found that the time savings and convenience of Opendoor’s process was well worth it.

Fred 5star

Ted was pleased with the hassle-free selling experience, but said dealing with the third-party escrow company could have gone more smoothly.

Ted 4star

Amy K. loved the convenience of coordinating the sale of her home with the purchase of a new house, but said a lack of communication later in the process led to unnecessary stress.

AmyK 4star

Opendoor complaints

Opendoor has received 95 complaints through the Better Business Bureau website, which is a moderately high number, compared to Offerpad’s 63 complaints and RedfinNow’s 42 complaints.

Surveying the Opendoor complaints, some recurring themes are from buyers who:

  • Find allegedly sub-standard repairs in their new home
  • Claim their sale fell through at the last minute
  • Used the Opendoor app and claim their information was sold to third parties
  • Generally complained about high fees.

Read more: What is a Lease Buyout Loan & How Does It Work? | Credit Karma

Opendoor seems very communicative in their responses, and willing to resolve problems, even when those problems result from buyers or sellers who may have failed to read the fine print. Before you enter into any transaction — with Opendoor or any other company — make sure you fully understand the terms and fees.

Additional Opendoor services

Besides Opendoor’s core iBuying business, the company also has a variety of other real estate services, including:

  • Home trade-in: Opendoor’s home trade-in service, Opendoor Complete, lets you sell directly to Opendoor, make an offer using Opendoor’s cash on your new home, and coordinate closing dates.
  • Home loans: You can use an Opendoor home loan in select markets to make a competitive offer backed by Opendoor’s cash, which is more appealing to sellers because it’s less likely to fall through.

Opendoor Trade-In

For a 5% fee, Opendoor’s home trade-in program, Opendoor Complete, helps you avoid paying two mortgages. Unlike other home trade-in programs, Opendoor will buy your home directly from you.

Opendoor requires you to use one of its agents when you trade in using Opendoor Complete, so this service is only available in the limited markets where Opendoor has buyers’ agents. By contrast, other home trade-in services like Knock let you use whichever real estate agent you like.

Opendoor Complete backs the offer on your next home with their own financing, essentially giving you the benefit of an all-cash offer. This gives you an advantage in a competitive market by eliminating seller risks, like contingencies related to financing or the sale of your current home.

However, if there is a financing issue and Opendoor needs to buy the home for you, you wouldn’t be eligible for its buyer refund or other incentives.

You can either list your old home once you have moved or sell it to Opendoor, just like you would using their standard iBuying service. Opendoor Complete allows you to use the company’s in-house lender or a mortgage company of your choice. If you’re listing your home, you must work with one of Opendoor’s in-house agents.

Opendoor Home Loans

Opendoor offers financing to home buyers in select markets. With Opendoor Home Loans, you can make a competitive offer using Opendoor’s cash and there are no lender fees.

You don’t have to buy a home from Opendoor or use an Opendoor agent to qualify for an Opendoor Home Loan.

Bottom line: Is Opendoor worth it?

Opendoor’s fair offers, low fees, and convenience make the company worth considering if you’re selling a home in a market where it operates.

Selling to an iBuyer comes with some potential drawbacks. When you sell a home in the traditional way, it’s likely you’ll have interest from multiple buyers, which can drive up the price, sometimes dramatically. When you sell to an iBuyer, this competitive aspect is completely absent; Opendoor’s offer is final and static.

That said, Opendoor offers are generally in line with fair market value. In fact, during early 2021 when homes were selling quickly, Opendoor paid a median of 107.7% of a house’s estimated value, according to real estate analyst Mike DelPrete.

Even in a hot market, you’d be getting less than you might get if you sold with an agent, but it’s not a lowball offer like you might get from other cash buyers.

Regardless, we always recommend talking to a real estate agent before you accept an offer from an iBuyer like Opendoor.

A high-quality real estate agent can inform you about your home’s true market value, so you know whether the iBuyer’s offer is worthwhile. Even if you’re in a rush to sell, a realtor will be able to give you a ballpark of how quickly your home might sell on the open market.

Our friends at Clever Real Estate provide a free service to match you with top-rated agents in your area from well-known brokerages like RE/MAX and Century 21. You can interview as many agents as you like until you find the right fit — or walk away at any time with no obligation.

FAQs about selling to Opendoor

Offerpad Reviews: How Does it Compare to Other iBuyers?: Offerpad is an iBuyer that offers a flexible closing date to home sellers. In this complete guide, you’ll learn how the company works, how real customers feel about the company, and the pros and cons of selling your home to Offerpad.

Offerpad vs. Opendoor vs. Knock: Which Should You Choose?: Offerpad and Opendoor are two leading iBuyers, while Knock is a trade-in service that allows you to make a guaranteed offer on a home before you’ve sold your old one. Learn the differences between these companies and how to choose the best fit for you.

Companies That Buy Houses for Cash: If you need to sell your home fast, a cash buyer can be a good option. Cash buyers will buy your home quickly and can provide a flexible closing. Here’s our in-depth guide to the best cash buyers available on the market.

What Companies Offer the Lowest Real Estate Commission Fees?: For home sellers who want to sell their homes for top dollar, the best way is to list with a full-service real estate agent on the open market. Here are the top companies that help you sell your home for a lower real estate commission so you can keep more money in your pocket.

0 ( 0 voted )

150 Charles
A remarkable site overlooking the expanse of the waterfront, 150 Charles Street is sited between the activity on the Hudson River and the history of the West Village

See more