About Opendoor

Constantly keeping your home show-ready, sometimes for months. Worrying about getting an offer. And then negotiating price when you finally do.

Whether this is your first time selling a home or your 10th, you know that the process can be stressful. But Opendoor can help “take the uncertainty out of buying and selling” by making you a quick—and competitive—cash offer. How?

Overall, Opendoor’s process works over three steps:

  1. Tell Opendoor about your home by filling out an online request.
  2. Receive an offer backed by market data.
  3. Sign the contract, pick your ideal move date, and receive your funds.

Opendoor also offers clients access to hundreds of listings of their own listings, including many that haven’t yet hit the market.

But just because Opendoor is “on a mission to simplify real estate,” does this mean that they’re ideal for your situation? And even if they are, how much money will you get? We’ll cover all of this and more here.

So to start, let’s take a high-level look at how the Opendoor process works.

The Opendoor Process

Requesting An Offer

To request an offer on your home, you’ll start by entering your address on Opendoor’s home page, and you should be able to complete the entire form in about three minutes. Then, Opendoor will use their “proprietary model” (basically, what comparable homes in your area have sold for) to provide you with an offer.

Opendoor Home OfferAn example of what you might see if Opendoor decides to make an offer on your home.

Accepting Your Offer

If you decide to accept their offer, Opendoor will then schedule a free home inspection to confirm the condition of its structural, exterior, roofing, plumbing, electrical, insulation and ventilation, and HVAC systems.

If repairs are needed (most customers pay less than $1,500 for repairs, and 25% don’t need them at all), you’ll either need to complete them or provide any credits the company asks for. Even up to this point, if you don’t want to make any repairs, you’re free to walk away from the contract without cost or obligation.

Moving On With Your Life

After everything’s been finalized with the inspection, you’ll be able to choose your move-out date (no more than 60 days) and Opendoor will handle the rest. You’ll need to have one final walkthrough the day before closing in order to verify everything’s in the same condition and all your belongings have been moved out.

In the mean time, Opendoor will open an escrow account with a national title company and you’ll need to sign your closing documents (if necessary, a mobile notary can meet you where it’s most convenient). Then, on the day of closing, an escrow agent will distribute the funds to you. And you’re done!

Will Opendoor take just any home, though?

Opendoor’s Property Requirements

Opendoor isn’t a house flipping company, who might take just about any type of property imaginable, so long as they can make a 25% profit. Instead, they’re looking for homes that meet very specific criteria. According to their website, this includes:

  • Single family residential real estate (including condos and town-homes that can receive traditional financing)
  • Homes that are site-built (not pre-fabricated or mobile)
  • Homes located in Phoenix, AZ or Dallas, TX
  • When the seller has clear ownership of the property (no double escrow)
  • Homes built after 1960
  • Homes that are not in age-restricted communities
  • Homes where our valuation is between $125K and $500K
  • Homes that sit on at maximum of half an acre of land
  • Homes that are owner-occupied or vacant, not leased, at the time of closing
  • Homes that are non-distressed or Real Estate Owned
  • Homes that don't have any un-permitted additions or significant foundation issues
  • Homes that don't have a solar lease
  • Homes that do not have polybutylene plumbing
  • Homes that do not have aluminum electrical wiring
  • Homes that do not have masonite woodruff roofs

What’s Different About the Way Opendoor Sells Homes?

If you’re looking to buy instead of sell (or perhaps even both), Opendoor boasts hundreds of listings across three metropolitan areas: Phoenix, Dallas-Fort Worth, and Las Vegas.

Compared to traditional methods, the website indicates that Opendoor provides the ability to visit their listings any time of the day between 6a and 9p, without needing an appointment. Simply download the free app and you’ll gain access to all their listings.

Alright, now that we’ve covered the basics, it seems like Opendoor might offer a more streamlined approach to selling your home, or purchasing a new one. But will you pay for this convenience

How Much Will Opendoor Charge To Buy Your Home?

Requesting an offer from Opendoor is completely free. And until your home is inspected and both you and the company have decided to move forward, you can walk away at any point without charge.

Once you’ve entered into a contract, it doesn’t seem like Opendoor provides much (if any) of a cost savings. For example, if you take a look at Opendoor’s pricing comparison page, you’ll notice that you’ll pay 2-6% less since there won’t be any agent commissions or seller concessions.

However, Opendoor makes up for a good portion of this since they charge a “market risk” fee of about 2%—and it’s unclear how competitive their offer will be (more about this next). But at least from a fees perspective, you might end up paying about 1% more than selling your home the traditional way.

Opendoor ComparisonAccording to Opendoor’s price comparison, you’ll pay about the same (or more) in fees compared to selling your home on the open market.

For a more well rounded overview of Opendoor’s fees, be sure to read through How Much Does Opendoor Charge in their FAQ.

If you decide to purchase a home from Opendoor, they provide a premium home warranty and a 30-day satisfaction guarantee that stipulates, “If you don't love your home for any reason, [they’ll] buy it back.”

Now, here’s the big question: How much money can you expect from Opendoor? Will their offer be about what you could expect selling through a traditional broker?

How Much Will Opendoor Pay You For Your Home?

Because Opendoor’s valuation model is proprietary, we’re not told about any of the specifics, other than that it “was built by our in-house team of expert statisticians and real estate professionals,” and that it uses comps in your area. Outside of this, according to their website, their offers are transparent, “consistent with the market,” and “based on location, characteristics and unique features.”

In real world terms, what’s this mean for you? We’ll wrap everything up in a second, but let’s first take a look at what everyone else is saying about Opendoor.

Does Opendoor Have a Good Online Reputation?

Opendoor has been featured in several popular publications like Fortune, Wall Street Journal, and Re/code, although most of these were high-level overviews. One thing that most of them shared, though, is that you should expect to sell at a discount if you choose to work with Opendoor.

In fact, the only customer reviews available at the time of our research were found on Yelp, where 12 Opendoor customers left feedback. Here, the company had an average rating of 3 stars. Why? Although some reviewers claimed the process was simple and straightforward, the most common complaints referenced lowball offers and very high fees.

From a company perspective, Opendoor is based out of San Francisco, CA and has been in business since 2014. They had an A rating with the Better Business Bureau with no closed complaints (as of 1/26/15).

Is Opendoor Your Best Option For Selling a Home?

“Best” is a very subjective term, and the factors that might make Opendoor an ideal solution for one person could mean that they’re a terrible option for you. So, here are a couple things to think about:

Opendoor: Convenient But Expensive

There’s no question that Opendoor can simplify the home selling process. But for this convenience, you’ll potentially lose money. How much, exactly?

This depends on a ton of different variables, but this article noted their fees are about 2-4.5% more expensive than a traditional Realtor. While this might not seem like much, on a $250K home this amounts to anywhere between $5,000 and $11,250 that you won’t be putting in your pocket after closing.

And based on many of the Yelp reviews referenced above, Opendoor might submit an offer that’s tens of thousands of dollars lower than market value, on top of their higher fees.

Opendoor’s Limited Market

At the time of our research, Opendoor only operated in the Phoenix, AZ, Las Vegas, NV, and Dallas, TX markets. So, if you’re outside these areas, you’re out of luck.

Given everything we’ve talked about here, from a selling perspective, Opendoor might be ideal for two completely different clients. Either 1) those who have a lot of equity in their home and can afford to trade money in their pocket for a quick sell, or 2) those who might be in deep financial stress and need to sell their home quickly and deal with the loss down the road.

But if you’re in between either of these buyers (e.g. someone who might have a little equity, but not enough to take the hit, or those who aren’t in a hurry to sell), then a traditional selling experience might be more to your liking.

From a buying perspective, Opendoor’s unique 6a-9p open house and no appointment required access guidelines could certainly help make visiting their listings easier, especially those of us with hectic schedules.

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9 Customer Reviews for Opendoor

Average Customer Rating: 2.0
Rating Snapshot:
5 star: 1 4 star: 1 3 star: 0 2 star: 2 1 star:  5
Bottom Line: 22% would recommend it to a friend
Showing 1-9 of 9
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  • 1 out 1 people found this review helpful

    Waste of time

    • Irving, TX,
    • Sep 20, 2017
    • Verified Reviewer

    Pretty disappointing experience (if you can even call it that). My husband and I were curious after hearing ads on the radio what they would offer us for our 3-year-old house in the DFW area. I admit the allure of skipping all the prep, not having to have the house show-ready all the time and having a fast close was enticing.

    It started off promising. Within minutes someone called and said an offer was being generated and we would have a follow-up with an agent to discuss things the next evening (great, for about 5 minutes), until we get a follow-up email saying due to the homes in our area being on the market for varying times at varying prices, they could not provide us with an offer. Seriously? Pretty sure that is the entire basis of your services, but advertise away! Apparently, the "instant" offers are made only to those homes on a select basis with optimal selling conditions. Misleading, to say the least.

    This will never replace a realtor or the human element of home selling. Our house is practically brand new, beautiful and I have no doubt they missed out on an opportunity. Stick with your realtor.

    Bottom Line: No, I would not recommend this to a friend

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  • 3 out 3 people found this review helpful

    Overall a fair and painless experience selling our home.

    • Fort Worth, TX,
    • Sep 9, 2017
    • Verified Reviewer

    I, like many other,s had heard the radio advertisements and received offer letters in the mail.

    I feel I got an acceptable offer in the end, although not full market value.

    Also below the significant price range in their offer letter. Although most agents told me our home could get $15-30k more through traditional sale, it was not enough to risk losing out on a purchase close to work in an area where prices are rising faster than a traditional sale could support.

    You do pay a traditional 6%, minimum, 'experience" commission on top of what they make on the markup of the home. Thankfully by the 4th offer there was no longer a Market Risk percentage tacked on and we decided to proceed. There are always closing costs to consider as well. A bit higher than what my home purchase was charging, but not wildly.

    Then comes the army of inspectors. This is where the negative reviews and horror stories of others really started to sink in. I was worried about how bad were they going to nit pick and fleece me out of my equity. I was frightful of the idea that I may have to abandon my hope to move to my new home as every dollar of the deal had a purpose toward making my purchase and move happen. However, it ultimately turned out well.

    Most of the items were small and inexpensive in the grand scheme. However, I did about drop dead from the request to pay to paint the inside of the house to the tune of nearly $4,000. Especially after had just spent the prior 2 days repainting and touching up the whole house.

    It turned out this was due to one inspector noting they smelled smoke in the house. My response was to the tune of, “No kidding, they are going to smell smoke when all of them leave the doors open and someone is on the front porch smoking.”

    After explaining no one has ever smoked in the house and inviting the local OD rep to give the house a sniff-test, they agreed to remove all but $500 of the paint charge.

    However, I still felt even that amount should have been removed. Even with that still in, all-in-all, the total repair requests came out to less than $2k. Everything else in that figure was fairly expected, except for the garage door opener that decided it was a good day to die after the first inspector tested it and was fine, then the second inspector tested and the motor froze. Not OD's fault, just dumb luck.

    The only other surprise that I had to pay for a new land survey, even though I had provided the original and nothing had changed. Thanks again to all the gloom and doomers out there, I was still extremely nervous all the way until closing and through my lease-back that some last minute whammy was going to hit and leave me in a bad situation.

    Thankfully it was all smooth sailing, my reps were very considerate and responsive and even made the final walk through a breeze. So much so that I almost felt disappointed when they refunded my lease-back deposit and didn't need me to meet them for final.

    This was after a spent a whole day of my lease-back time being very thorough about fixing every nick and scuff on the walls and anything else I could find that may be discounted.

    All too easy and nearly nothing like the negative experiences that have been reported. I think one of my favorite parts of the process was that from the beginning we were told not to worry about cleaning the place, no need to fix nail holes, and that they pay to replace carpet without question. Only wish they provided the movers as part of their deal, that part was nowhere near as smooth, but at least we didn't need to clean!

    The ultimate thing to remember about using them is that the offer they give you is based on the home being in best possible condition. If your house has not been maintained, has unrepaired systems or damages, contains appliances in poor condition, or is your yard and landscaping is torn up or dead, etc., you have to expect they will deduct for the cost to make the house presentable and sellable.

    The money you saved by not doing things over the years will haunt you when it comes to inspection time. This is not just an Opendoor thing, this is a selling your home thing as many buyers are going to request credits or completed repairs during the buying process unless you are selling your home far enough below market to accommodate the repair/remodel expense.

    Some things are unavoidable at any sale price such as a house must have flooring, working smoke detectors, major structural and safety defects must be resolved for the majority of buyers using a mortgage to finance their purchase.

    FHA borrows have even stricter condition requirements. Before getting upset that your selling price or offer is being chiseled away, step back and take a good hard look at your home and truthfully ask yourself if it is in the best possible condition to command full market value. If you are uncertain, take the time to invest in your own inspector ahead of time to do a thorough check of your home and point out the things that may be deficient about your house.

    Bottom Line: Yes, I would recommend this to a friend

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  • 1 out 1 people found this review helpful

    High fees but don't wait

    • Dallas, TX,
    • Sep 5, 2017
    • Verified Reviewer

    I was simply looking for a comp for my house to compare it to the Door estimate I had received. I submitted my request and received an email immediately saying that I would have an offer with in 24 hours with a request to upload pictures. I never received the offer, just another request to upload pictures. I attempted to do this, but there is no way to do this from their website after you submit your first request. I had to actually call the broker I guess, Chris Mason, and he told me just to email the pictures to him and he would send them on.

    I received an offer, which was actually fair except for the fees for brokerage, holding and fees to get the house ready for sale which totaled 12%. In my case, $43,000. I waited a few days to ask questions about the offer. I talked with Chris and resubmitted a request for an offer, the only way to get your offer information.

    I received an email from Opendoor at 5:30 pm on 8/30 that stated they were excited to make an offer. I pulled it up, and it was the original offer and then less than at 5:59 pm on 8/30 I received another email from them stating that they could not make me an offer at this time. Confused, I emailed Chris asking what was going on. He did not call me to explain; he sent an email stating that the in reevaluating the DFW area that in this case my fees went up to 18% so they could not make an offer at this time. Keep in mind it took them 29 minutes to make this decision after sending me the original offer. What is going on?!

    Bottom Line: No, I would not recommend this to a friend

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  • 2 out 4 people found this review helpful

    Great cross-sale experience

    I recently had the opportunity to work with Opendoor on a cross sale. They had the listing, and I represented the buyer. I'd heard mixed reviews in the past, but my client and I had a wonderful experience! They were very timely, responsive, helpful, and their communication was fantastic. All contractual timelines were achieved seamlessly, and we had a smooth and successful closing. My clients are very happy with their new home, and I would gladly work with Opendoor again in the future!

    Bottom Line: Yes, I would recommend this to a friend

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  • 15 out 19 people found this review helpful

    Run away when you see an Opendoor sale

    I was looking into buying a house in Arizona, and I didn't want to waste time. I saw a house with Opendoor on the door, and I accessed the house with their code. Note: They now had my contact information.

    I liked the house, and put in a CASH, full asking price offer with 21 days closing. It doesn't get better than that. We sent the offer over, and we got an acknowledgment back that the offer was received. We waited. And waited.

    The time period expired, and my realtor called Opendoor. They claimed they never got the offer. Then, they said they'd look into it and would submit a counter offer, and give us a slight price break (even $200 on a $358,000 house would have been thoughtful). Then, at the end of that day, we get an email ASKING US to re-write the exact offer, at the same price as the first offer. So much for them doing what is customary and writing a counter offer.

    Why are they doing this? I suspect that they are contacting others who texted them for the code and were shopping for a higher bidder. There is no other reasonable explanation. I walked away from it. No house is worth playing games. If you see Opendoor, walk away.

    Bottom Line: No, I would not recommend this to a friend

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  • 17 out 19 people found this review helpful

    Parents bought from Opendoor

    • Dallas, TX,
    • Mar 1, 2017
    • Verified Reviewer

    I just wanted to give the other side of the experience.

    My parents bought a house from Opendoor and had to go through multiple inspections. Although the house is supposed to be move-in ready and no repairs needed, the house had items exposed through my parents' inspector. Although they agreed to repair them and said they sent their contractor to make the repairs, my parents paid money for their inspector to check again and found that the repairs had not been done or had been short changed. They rely on their contractors (or want to just give you money and put the repairs on the buyer) and their contractors take advantage of every little oversight!

    It was not a good experience! It took multiple tries to get them to make any actual repairs and multiple expenses to my parents to keep having the lack of repair re-inspected. It is a nice concept, but they need to provide better oversight or get better contractors.

    Bottom Line: No, I would not recommend this to a friend

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  • 23 out 25 people found this review helpful

    Low offer price and high fees

    • Dallas, TX,
    • Jan 20, 2017
    • Verified Reviewer

    I received mail from Opendoor and I submitted details online. Their offer is 5-10% lower than the market price and overall the fee is 15% (including 6% broker fee, 6% service fee, etc.).

    It is not worth it to sell your home to Opendoor. Waste of time.

    Bottom Line: No, I would not recommend this to a friend

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  • 18 out 19 people found this review helpful

    Waste of time

    • Texas,
    • Nov 3, 2016
    • Verified Reviewer

    Sent me postal letter stating an offer range and interest in buying. I wasted time trading emails and providing information. They then made up some excuse and said not interested after the initial letter declaring otherwise. Find an agent or sell it yourself. Don't waste your time.

    Bottom Line: No, I would not recommend this to a friend

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  • 41 out 45 people found this review helpful

    Watch out for the opportunistic algorithm.

    • Dallas, TX,
    • Jun 28, 2016
    • Verified Reviewer

    Part of their proprietary algorithm seems to be a penalty for not accepting their offer.

    The initial offer I requested out of curiosity, and the number price was actually fair, but I disagreed with their market risk percentage (4.5%).

    So I talked to the agent, forwarded a dozen pictures to show the house was ready (actually planning to list in the next few days) to see if the offer would increase, or the market risk would go down. The second offer came back, $6k less on the offer and market risk raised to 5% (this was inside of 2 days).

    Fast forward, my house has been on the market a few weeks, and I noticed that my estimated value on Zillow had gone up by about $20k from when we had listed based on comps. Since Opendoor's offer was pretty close to what Zillow had estimated initially, I figured if their offer scaled with Zillow, then even with their 'market risk' percentage, it was actually within the range of what I'd consider an acceptable offer. So I submitted for an offer again. (This was a Saturday). I waited and hadn't heard anything by Monday morning, so I submitted again.

    Finally, today, I received two offers, 6 hours apart. Each was about $6k less than the one before, and each had about .5% increase in market risk, so despite the market value improving, their offer decreased by about $18k, and market risk went from a high 4.5% to 6%. Dropping $6k in value and 0.5% increase in Market Risk within 6 hours.

    So if you get an offer, and are on the fence at first, just know that if you come back later, they're going to take advantage of your desperation.

    Bottom Line: No, I would not recommend this to a friend

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