Thinking about whether you should sell with Opendoor? Here’s an honest breakdown before you request an offer. What is Opendoor? Opendoor is an iBuyer company that purchases homes directly from homeowners, saving homeowners the trouble of open houses, cleaning their house for home showings, waiting for offers, and closing complications.
When a homeseller requests an offer for their home, Opendoor compares the property to recently sold homes and uses user-submitted data to make an offer. The homeowner then accepts or rejects the offer. The homes are then re-sold on the open market.
Opendoor also offers traditional listing services, but they are best known for their iBuyer services.
How Does Opendoor Work?
If you decide to sell your home to Opendoor, the process is fairly straightforward.
- You supply Opendoor with your address and confirm details about the property (such as square footage and the number of bedrooms, but also more specific details like the type of countertop you have).
- Opendoor will generate a preliminary offer for your home.
- If you decide to sign the purchase agreement, Opendoor will schedule a home condition assessment for you. If they feel repairs are needed, they will deduct the estimated cost of repairs from your offer.
- Once the net proceeds have been updated with repair deductions, you accept or decline the offer. There is no negotiating, but if you think the repair estimate is too high you can ask for a re-assessment.
- If you decide to accept the offer, you will then need to choose a closing date. You’ll then be paid for your home within a few days of closing.
While there are additional details involved with each step, this is a pretty fair summary of how Opendoor works.
How Much Does Opendoor Cost? Are There Hidden Fees?
Although Opendoor is transparent about its pricing, some homeowners may find the repair deductions at the end of the offer to be akin to “hidden fees” – especially because Opendoor gets to make the determination as to what repairs will cost.
According to the Opendoor website, you can expect:
- A 5% service fee*
- 1% closing costs (escrow and title fees etc. that you’d encounter in a traditional real estate transaction)
- Repairs (the amount will depend on the condition of your home)
So if you have a $500,000 home, Opendoor expects that you’ll pay a minimum of $30,000 before repairs.
The Federal Trade Commission has accused Opendoor of deceptive business practices that led homeowners to offer up their homes for less than they would pay on the open market – and in August 2022, Opendoor settled the case for $62 million.
So how does this compare to a traditional brokerage, OfferPad, and Houwzer?
With a traditional brokerage, sellers pay:
- 6% commission fees (3% to each agent)
- 2-4% closing costs (escrow, transfer taxes, etc – varies widely depending on location, house, and more)
So for a $500,000 home, you’d pay about $50,000
With OfferPad, sellers pay:
- 5% service fee
- 1% estimated closing costs (transfer taxes, etc)
- Closing costs (escrow, transfer taxes, etc)
- Repairs
So for a $500,000 home, you’d pay a minimum of $30,000 before repairs
With Houwzer, sellers pay:
- A 1% fee for full-service listing and agent
- 2-3% for the buyer’s agent
- 2-4% closing costs (transfer taxes, etc)
So for a $500,000 home, you’d pay $25,000-$40,000
However, it’s worth noting that both traditional brokerages and Houwzer bring homes to the open market. Since it’s currently a seller’s market, some homes receive multiple offers and sellers are in a position to ask for exactly what they want (whether that’s buyers guaranteeing that they can pay cash even if the appraisal comes in low, or asking for a seller rentback).
In other words, on the open market that $500,000 home might go for $510,000.
When you sell a home to a “we buy your house” website like Opendoor, you get one offer, rather than several, and you lose the leverage you’d have by playing multiple offers against each other. In other words, you are paying for the convenience of having a quicker, more streamlined closing experience.
*Until recently, Opendoor charged up to 14% for the service fee – they updated their policy in 2020 to cap at 5%, but many articles about Opendoor still list the outdated fee structure.
Opendoor Reviews
Yelp
On Yelp, Opendoor Realty (a Nevada Opendoor office) has an overall rating of 2 out of 5 stars based on 25 reviews. Two examples of Opendoor reviews there include:
“It was easy and a better experience than the agent I worked with initially. You make less but it was stress-free. I would definitely recommend them and use them again.”
-Mstr Kevin L. D. of Henderson, Nevada (2021)
“This is the most unprofessional company I have ever dealt with as a real estate professional. Here is their scam. They offer you a great asking price for your home then they load up on repair costs and hidden fees. On my deal they added $8,000 dollars one hour before closing.”
-Jason Griggs of Henderson, NV (2019)
Review.io
On Review.io, Opendoor has an overall rating of 4.33 out of 5 stars based on 1,590 reviews. Two examples of Opendoor reviews there include:
“…We had surprises when signing paperwork (for which we were given a deadline to sign and couldn’t get legal clarification in time). The offer given was okay given market conditions, but they only use their inspector and then waited until 24 hours before closing (a week and a half after inspection) to present their offer with reduced repair costs, etc after inspection. The home seller is intentionally given no time to react…If I could do it again, I would try a different service or just use a Realtor.”
-Anonymous (2021)
“Smooth, easy, hassle-free. Eliminated showings. With 3 dogs and a cat, cleaning out for showings would have been almost impossible.”
-Michael of Denver, CO (2021)
What Our Local Realtor Has to Say
Tampa-based listing agent Windy Back has first-hand experience working with Opendoor.
“I have had sellers go with Opendoor offers only to call me weeks later to come back to the market and cancel the Opendoor offer. Opendoor and similar home buying companies offer market value for properties to entice sellers away from placing their home on the open market. Weeks later they come through, do an inspection, only to offer much much less on the home,” she explains.
“This last one was a 40k difference between what they originally offered at the initial contract and what the company was actually willing to pay. I ended up selling the home for 100k more than what Opendoor offered.
These are common tactics IBuyers use to make sellers believe they have no alternative and/ or are locked in a contract. IBuyers are great for homes that would not sell on the open market, or sellers looking to cash out and be done. But most sellers are looking to get top dollar for their listing with little inconvenience. And in a seller’s market that is an easy feat for any agent to accomplish – it makes no sense for your average homeowner to take the Ibuyer route.”
Is Opendoor Worth It?
Although online reviewers are sometimes quick to jump to “it’s a rip-off”, it’s important to reiterate that Opendoor does not really sell itself as a cheaper solution than using an agent, which is where many people misunderstand their services. They are a faster and often more convenient service because the buying and closing process is sped up.
Because Opendoor charges a 5% service fee – and also deducts for repairs – people rarely profit more than they would by selling on the open market.
However, Opendoor can be the perfect solution for homeowners who really need to prioritize speed and/or ease of transaction. Opendoor can be worth it when:
- Your home needs a lot of repairs that would make it harder to sell on the open market
- A loved one passes away in another state, and dealing with paperwork and open houses can be extremely stressful from hundreds of miles away
- Saving time is more important than maximizing profit
- It’s difficult to arrange the home for showings: families with children, pets, elderly parents, etc. may not have the bandwidth to clear out of the home multiple times a week for it to be shown to buyers
- You live in an area where the local real estate market isn’t as hot
Selling With Opendoor vs. a Traditional Sale
When you sell with Opendoor, you trade top-dollar for speed and certainty. Opendoor makes a cash offer, you skip showings, and you pick your closing date. A traditional sale usually nets more money but takes longer and depends on the market. The right choice comes down to how much that convenience is worth to you.
Opendoor Fees and Your Net Proceeds
Opendoor charges a service fee and deducts estimated repairs from its offer, so the headline number isn’t what you pocket. Before you decide to sell with Opendoor, ask for the full breakdown: offer price, service fee, repair deductions, and closing costs. Compare that net figure to what a local agent estimates you’d clear on the open market.
When It Makes Sense to Sell With Opendoor
Selling to an iBuyer like Opendoor can be a good fit if you need to move fast, can’t coordinate showings, or value a guaranteed closing over maximum price. If your home is in strong condition and your market is competitive, listing with an agent often beats an Opendoor offer — sometimes by enough to cover the agent commission and then some.
Sell With Opendoor FAQ
How much does Opendoor pay for houses?
Opendoor aims to pay close to market value, then subtracts a service fee and estimated repairs. Offers are typically below what a well-prepared traditional sale would net, in exchange for speed and certainty.
Is it a good idea to sell with Opendoor?
It can be, if convenience and a guaranteed closing matter more than maximizing price. Always compare Opendoor’s net offer to an agent’s estimate before you decide to sell with Opendoor.
Does Opendoor charge fees?
Yes — Opendoor charges a service fee and deducts repair costs from the offer, which is why your net proceeds are lower than the gross offer figure.
Alternatives to Selling With Opendoor
If the numbers make you hesitate to sell with Opendoor, you have options that can put more money in your pocket. Before you sell with Opendoor, it’s worth pricing out each one so the decision is based on real figures, not just convenience.
List with a low-commission agent. A full-service agent who charges less than the traditional rate can often net you more than an Opendoor offer, even after fees. For many sellers this is the strongest reason not to sell with Opendoor.
Request offers from multiple iBuyers. Opendoor isn’t the only cash buyer. Comparing competing offers tells you whether the choice to sell with Opendoor is actually your best cash option or just the most familiar one.
Sell off-market to an investor. If speed is everything, a local investor may match Opendoor’s certainty. Weigh that against what you’d clear if you sell with Opendoor after its service fee and repair deductions.
Key Takeaways: Should You Sell With Opendoor?
- Sell with Opendoor when speed and a guaranteed closing matter more than top dollar.
- Don’t sell with Opendoor on price alone — compare the net offer to a local agent’s estimate first.
- Before you sell with Opendoor, get the full fee and repair breakdown in writing.
- If your home shows well in a strong market, listing usually beats choosing to sell with Opendoor.
Bottom line: sell with Opendoor for convenience and certainty, but only after you’ve confirmed the net number beats a traditional sale.
