If you’ve typed “how to sell my home” into the search bar and immediately closed the browser because of the overwhelming amount of options, then you’re in the right place.
Selling a property, at first glance, can be an exhausting process. Between renovations, listing, finding an agent, and tours, the process can be daunting. Don’t forget the addition of moving and finding a new home!
Luckily, there are multiple iBuyer companies out there that will help you sell your home fast and easily.
We’ll be focusing on Compass vs Opendoor in this article. Keep reading to find out which platform is best for selling your home!
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What is an iBuyer?
Before discussing the different home selling platforms out there, let’s talk about what an iBuyer really is.
An iBuyer is a company that makes an instant offer on your home through an online platform. iBuyer platforms provide a quicker and less involved option for busy people trying to sell their homes.
While each iBuyer platform is slightly different, the main idea for all companies is to estimate the value of your home and then make an instant offer. The offer is not set in stone, though. This offer is usually contingent upon renovations.
Additionally, many of these companies charge fees to offset their agent referral fees. We’ll talk about those when we break down Opendoor vs Compass costs later.
If you want your home to be sold quickly and don’t mind paying a bit more for ease of use, then an iBuyer is the perfect option for you.
Compass Real Estate, at first glance, looks just like a traditional real estate model.
You type in your information, and then you will be connected with a local agent. The agents at Compass are experts in your area, so they come with a plethora of knowledge.
In addition to that knowledge, though, is a technological innovation to help you sell your home faster. A team of software engineers and data scientists work to give you specific market insights on your area in an easy-to-use dashboard.
These insights are pivotal in Compass’ mission to “make the search and sell experience intelligent and seamless.”
In addition to the technological advantage of Compass, they also offer a service called The Compass Concierge service. We’ll talk about that more in-depth next.
Compass concierge services
The Compass Concierge program is the service that makes Compass different from the other real estate listing sites.
The Compass Concierge program takes extra steps to sell your home faster (and possibly at a higher price) without you even having to lift a finger. Compass covers the upfront renovation costs and doesn’t charge you until the close of escrow.
For example, Julia, a home-seller in Oakland, used the Compass Concierge program and only had her home listed 12 days before it was sold. Additionally, her home sold for 47% over ask.
The ease of listing that Compass Concierge provides is also the platform of Opendoor’s model. Let’s discuss Opendoor’s platform now.
Opendoor is an online iBuyer platform that buys and sells your home directly.
After submitting your home on Opendoor, you can expect a cash offer on your home within days or even hours- but this offer is highly contingent upon renovations.
Additionally, Opendoor’s offers are only valid after a home inspection. Your home must be built after 1960 and have a value between $125,000 to $500,000 to qualify for Opendoor’s services. Once your home has been inspected and fits these guidelines, Opendoor takes the work out of your hands!
If you don’t have time for insights, and just want a less-involved way to sell your home, Opendoor is a perfect solution for you.
Compass vs Opendoor
While both platforms offer similar perks for sellers, your home may be better suited for one over the other. Let’s discuss how these platforms line up against each other.
Opendoor charges a flat 5% service charge and a 1% closing fee charge, in addition to the repair costs (which are based on a home inspection).
Compass charges based on equity—if the services requested on a home under $3 million are 5% or less of the list price, then you are guaranteed to be approved. If your home is worth more than $3 million or needs repairs worth more than 5% of the list price, then you must show proof of 4x equity in the home.
Compass, however, does not charge other fees on top of the improvement/staging costs. While this may be enough to sway you, it is important to get a quote from both platforms, as the cost of renovations could be very different between the two.
Reaching out for an offer is free for both platforms, so do your due diligence and give each one a try before you decide!
Let iBuyers help you sell your home fast
Selling a home doesn’t have to be exhausting. iBuyers make the real estate buying/selling process easier so you can easily move on to the next big phase of your life.
When it comes to Compass vs Opendoor, it all depends on your specific home. Using iBuyer’s Free Home Value tool, you can decide which platform will be better suited for your needs (and wallet!)
If iBuyers spark your interest and you’d like to learn more about selling your home to one, check out our website and get matched with the best iBuyer for your home!