Introducing Opendoor iBuyer program information
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Opendoor is the nation's largest iBuyer and the pioneer of the iBuying model. They opened their doors in 2014 to solve the problem of timing when it comes to selling your existing home in order to buy a new home. Opendoor gives sellers the freedom to move with ease.
How It Works
Opendoor is the nation’s first iBuyer company, operating on this foundational model with slight differences in process, fee structure, and additional services.
When a homeowner wants to sell their property to Opendoor, they submit their home details through the Opendoor website. The company’s algorithm, informed by vast amounts of data and a nuanced understanding of local market dynamics, generates a preliminary all-cash offer.
In this way, Opendoor offers a unique value proposition: eliminating the uncertainty that comes with financing contingencies in traditional sales.
Should the seller show interest in the initial offer, Opendoor schedules a free home assessment. Unlike traditional home inspections that might take hours, Opendoor’s process is swift, focusing on major issues that could significantly impact the home’s value.
The platform then calculates the cost of these repair needs and presents the seller with a final offer, deducting the projected repair costs.
Opendoor's service charge is comparable to the commission one might pay a real estate agent, generally around 5% of the home's sale price– although this can be even lower in some markets. This fee compensates the company for the risk it assumes and the convenience and certainty it provides to the seller.
Opendoor primarily targets single-family homes in the median market value range, which can vary by city. The platform doesn’t usually purchase properties in severe disrepair, unique homes that are challenging to value, or those in areas with limited market data.
The good news? Opendoor is continually expanding its scope as it enters new markets and accumulates more data and local market expertise. The platform caters to an increasingly wide pool of homeowners.
From the moment a seller accepts an offer, they can choose their closing date, which can be anywhere from 14 to 60 days. This flexibility is immensely helpful for sellers coordinating the sales of their current homes with the purchase of a new one or those needing to relocate by a specific date.
In addition to the core home-buying program, Opendoor positions itself as a one-stop real estate platform. The platform has launched self-tours of its properties, where potential buyers can use the Opendoor app to access a home for a tour without a traditional agent.
Recognizing the challenges homeowners face in aligning the sale of an existing home with the purchase of a new one, Opendoor has also introduced a trade-in program. This service allows homeowners to trade in their current home and apply the equity toward the purchase of a new home, even if the new home isn't an Opendoor property.
The program is designed to provide a seamless, simultaneous closing process for both transactions. It essentially frees homeowners from the balancing act that typically accompanies buying a new home while selling the current one.
Another valuable service Opendoor brings to the table is cash-backed offers, which strengthen a buyer's position in competitive markets. When a buyer finds their desired home, Opendoor verifies their finances and backs their offer with cash.
This service has the potential to significantly increase the buyer's chance of winning a bidding war in a hot market.
Opendoor Real Estate Markets
Opendoor is currently buying and selling homes in the following markets:
See what an iBuyer would pay for your home
What Types of Homes Does Opendoor Buy?
Opendoor buys a great variety of homes, including:
- Single-family homes
- Duplexes (in certain areas)
- Condos (in certain areas)
- Homes built after 1930
- Homes in gated communities (in certain areas)
- Homes in age-restricted communities (in certain areas)
- Homes with solar panels
- Homes that are owner-occupied or vacant
- Homes with an Opendoor offer price between $100K and $600K, although this can range up to $1.4M
There are some exclusions to the type of homes that Opendoor buys. These include:
- Mobile homes
- Prefabricated homes
- Homes over 90 years old
- Homes on lots larger than 2 acres
- Homes located in flood zones
- Homes owned by banks, government agencies, or government loan insurers.
- Homes sold as a short sale or foreclosure
- Homes with unpermitted additions
- Homes with significant foundation issues
- Homes with damage from floods, fires, or other natural disasters
- Homes dated materials like polybutylene plumbing or masonite woodruff roofs
- Homes with a well or septic system
If you’re thinking about signing up for the iBuyer program, it can be helpful to read reviews — both positive and negative — for whichever service you’re considering. Here’s why reviews are so important:
Reviews paint a realistic picture of what to expect, combining the good and the bad for a balanced viewpoint.
Avoiding Potential Pitfalls
Negative reviews highlight problems faced by past customers, helping future customers avoid similar issues or at least understand the risks before committing.
Testimonials help potential customers align their expectations with what’s actually provided by the service.
Positive reviews speak to the company's strengths and can validate the effectiveness and efficiency of the service they're offering.
Customer Service Insight
Reviews reflect the quality of an organization's customer service. This is an essential factor in any business transaction, especially one of significant financial impact.
Identification of Common Trends
Recurring praise or complaints indicate a consistent strength or weakness in the service.
Understanding potential hidden costs can help you avoid unexpected expenses. Reviews bring these to light.
Knowing what to expect from the process saves time, as you can prepare for steps that other users have identified as time-consuming or complex.
Confidence in Decision
Seeing that others have had positive experiences can provide reassurance and confidence in proceeding with the service.
Negative reviews offer insight into how the company handles problems –– do they ignore complaints, or do they engage constructively and seek a resolution?
A service with predominantly positive reviews builds community trust, whereas an abundance of negative reviews warns of a potential red flag.
Different users have different needs. Customer reviews can help you determine if the service aligns with your particular requirements.
Opendoor reviews can be found on multiple platforms, all of which offer potential customers critical insight into the service.
"My mom sold her house to Opendoor and I was the main facilitator of this at her request. The process was so amazing. It was easy from … "
"First of all I am 76 years old my husband passed away December. I had so many people confronting me to buy my house or steal it … "
"Sold with opendoor and the process couldn't possibly have been better. It was so easy. I kept thinking that it was too good to … "
"My experience as a Buyer: Went through the process, met with someone, sent in pictures - they did a quick review of the house … "
"Opendoor charged us $2300 for repairs. Two weeks after we closed we saw the house listed for sale. They did not make any … "
"Overall it was a really great experience. The only reason not 5 stars is the title company they used were very slow at responding to … "
Looking at Both Sides
Opendoor’s positive reviews collectively emphasize the convenience, efficiency, and emotional relief that Opendoor provides sellers. In this way, the company really sets itself apart from traditional real estate transactions.
From these reviews, it’s clear that customers appreciate the ease of the selling process. They like being able to sell on their own terms, bypassing the constraints — and often difficult intermediaries — that are part and parcel of traditional home buying.
The negative reviews highlight areas for improvement, especially around transparency in pricing and repair deductions. They also mention the need for consistent quality in partner services. Potential users should carefully weigh all of these factors when determining whether or not to work with Opendoor, or even the iBuyer program in general, in the future.
Pros and Cons
While Opendoor’s approach to home selling offers several advantages, it's not without its downsides. Here are some of the pros and cons of using this service.
Opendoor's iBuyer service is incredibly convenient for users. It’s particularly beneficial for sellers with time constraints or those who have already moved to a new residence.
Opendoor's offers may be below what homeowners typically receive in the traditional market.
The Opendoor iBuyer program makes quick offers, often within days, and lets users close deals in a matter of weeks. By contrast, traditional home sales can take months. The platform is ideal for sellers facing situational urgencies like relocation for a job, divorce, or unexpected financial needs.
Opendoor’s service fee covers the convenience, risk, and other costs the platform incurs, but it's an additional expense that sellers need to consider.
Sales through Opendoor are more predictable than traditional real estate transactions. Once Opendoor makes an offer and the homeowner accepts, the sale is almost guaranteed, barring significant unforeseen circumstances during the inspection.
After making an offer, Opendoor conducts a detailed inspection of the property. This can lead to unpleasant surprises for homeowners.
Opendoor uses a technology-driven approach to evaluate homes, make offers, and manage transactions. This digital platform simplifies communication and other administrative aspects of the sale.
Less Control Over Final Sale Price
With Opendoor, the seller doesn't have the opportunity to negotiate with multiple interested buyers. Sellers are largely at the mercy of Opendoor's initial valuation of their home.
Opendoor is the largest national iBuyer, or instant buyer in America. Pioneers of the iBuying program model, Opendoor was founded with the mission to give sellers the freedom to move more easily.
Opendoor works by first determining the current market value of your home and then offering you cash to buy your home. If you choose to accept their offer, you can then decide your closing date and close on the sale within 60 days. If you prefer to list your home on the open market, Opendoor will help you do that instead.
Opendoor is the nation's largest iBuyer and is currently buying and selling homes in the following cities: Atlanta, GA, Austin, TX, Charlotte, NC, Dallas-Fort Worth, TX, Denver, CO, Houston, TX, Jacksonville, FL, Las Vegas, NV, Los Angeles, CA, Minneapolis-St. Paul, MN, Nashille, TN, Orlando, FL, Phoenix, AZ, Portland, OR, Raleigh-Durham, NC, Riverside, CA, Sacramento, CA, Salt Lake City, UT, San Antonio, TX, Tampa, FL, and Tucson, AZ.
Opendoor was founded by two entrepreneurs, Eric Wu and Ian Wong, and is still operated by the founding duo.
It depends what Opendoor estimates your home is worth, and that estimate is based on the location, size, and age of your home, as well as comparative sales and current market conditions. To determine your home value, Opendoor uses industry data and assessment algorithms.
To get an instant idea of what an iBuyer like Opendoor would offer in cash for your home, simply enter your address in our iValuation tool.
If you're wondering how much commission Opendoor charges, it's roughly the same as a traditional real estate agent's commission. Opendoor fees are currently 6.8% of the sale price of your home.
Yes, you can negotiate with Opendoor just like you would with a traditional real estate agent.
To date, Opendoor has purchased tens of thousands of homes and their annual purchase rate is expected to continue to grow as they expand into new markets across the country. In fact, they claim to receive a new inquiry for a cash offer every 60 seconds.
The scale of the Opendoor iBuyer program enables them to purchase homes in a wider price range than some of the other, smaller iBuyers. That said, Opendoor still gravitates towards single family homes that are priced between $300,000 and $600,000.
Opendoor typically responds within 24 hours with a cash offer. If they have additional questions, they might contact you for more information before providing a cash offer to buy your house.
No, as is standard in the industry, closing costs are an extra fee, just like taxes, that you are required to pay with the sale of your home.
Opendoor lets you close on the sale fast. Their average closing time is between 14 and 60 days.