Opendoor is a San Francisco-based iBuyer that makes instant cash offers on homes. They provide home sellers with speed, convenience, and the flexibility to choose a closing date. You can also browse homes for sale on their website.
Editor’s Rating
User Rating
(11 Reviews)
Pros
- You don't need to spend thousands of dollars on repair costs.
- Opendoor gives you a flexible closing timeline of 14 to 60 days.
Cons
- Opendoor extends lowball cash offers that are 70%-80% of your home's fair market value.
- Their 5% service fee reduces the total equity you get for your home.
- Opendoor has a strict eligibility criteria for the properties they purchase.
Opendoor is the largest instant buyer in the U.S. They make cash offers on selected properties. However, they have fixed eligibility criteria for the homes they purchase. They buy single-family homes and townhouses. According to Opendoor reviews, they also purchase duplexes and condos in certain locations.
Their cash offers are usually between 70% to 80% of your home’s Fair Market Value. Additionally, they charge a 5% service fee and a 1% closing cost. This can significantly reduce the value of your home if you sell it to Opendoor.
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✍️ Editor’s Take: Want to secure the Fair Market Value for your home? We recommend Houzeo over Opendoor. As America’s #1 cash buyer marketplace, Houzeo connects you to nationwide investors and provides a transparent selling experience. Compare Opendoor vs. Houzeo.
Is Opendoor Legit?
Yes, Opendoor is a legitimate company headquartered in San Francisco, California. Eric Wu and Keith Rabois founded Opendoor in 2014. At present, Carrie Wheeler is the CEO of Opendoor.
Opendoor.com captures over 67% of the iBuying market in the United States. Apart from their iBuying business, Opendoor offers other services such as refinancing, listing homes, buying homes, and buying & selling.
How Does Opendoor Work?
Here’s a quick rundown of how you can sell your home to Opendoor:
- Request an Offer: You need to provide important details about your home on opendoor.com. After this, you’ll receive a free estimate of your home’s value.
- Schedule a Virtual Home Tour: If you accept their offer, Opendoor will arrange a virtual home tour. You can choose a video call or submit property photos and videos for verification.
- Complete the Home Inspection: Opendoor sends a home inspector to examine your property. The home inspection covers the foundation, roof, plumbing, electrical system, etc.
- Receive the Final Cash Offer: Opendoor makes a final offer on your house within a few days of the assessment. This includes their 5% service fee, repair expenses, and the 1% closing cost.
- Close on the Sale: If you accept Opendoor’s cash offer, you can select a closing date that extends from 14 to 60 days.
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👉 Important Note: You will need to move out of your house by 11.59 pm on the day before escrow closes. The cash sale will go through a few days after closing.
What Types of Homes Does Opendoor Buy?
Opendoor reviews reveal that they have strict eligibility criteria for the homes they purchase. If your property doesn’t meet them, the company will not extend an offer.
To qualify for an Opendoor offer, your property needs to fulfill these conditions:
| Parameters | Criteria |
|---|---|
| Ownership and Occupancy | Clear and marketable title. The property must be occupied by the owner. Furthermore, it must also be vacant at the time of closing. |
| Home Type | Single-family homes, townhouses. Duplexes and condos in certain areas. |
| Valuation | $100K to $600K. They can also buy homes valued up to $1.4 million. |
| Year Built | Houses built after 1930. |
| Maximum Lot Size | 1 to 2 acres of land. |
| Home Location | House needs to be within Opendoor’s coverage area. |
Other Opendoor Services
Here are some additional services Opendoor provides, depending on your location:
- Opendoor Brokerage: You can work with an Opendoor agent if you wish to list your home on the MLS. Similar to a traditional brokerage, you will receive all the assistance you need with Opendoor realty.
- Opendoor Complete: You can use your Opendoor cash offer for your old home to purchase a new one. Instead of paying two mortgages, you just have to pay the 5% service fee once.
- 90-Day Buyback Guarantee: Opendoor offers a 90-day buyback guarantee for a 3% fee. So, if the house doesn’t live up to your dreams, you can return it in three months.
- Opendoor Home Loans: You can finance your new home with the Opendoor mortgage lending solution. You get competitive interest rates on loans and avoid any extra lender charges. In certain states, Opendoor also offers a credit of $1,000 towards closing.
- Opendoor Title: With the acquisition of OS National in 2019, you can avail of title insurance and escrow services with Opendoor Title.
Opendoor’s Coverage
Opendoor has a limited coverage area of just 51 metropolitan cities.
Opendoor’s restricted coverage may force you to turn to the open market. If that is the case, an MLS listing on Houzeo.com is in your best interest. With near nationwide coverage, your listing can be on your local MLS within 24-48 hours.
How Much Does Opendoor Homes Pay?
Opendoor reviews suggest that sellers usually get 70%-80% of their property’s Fair Market Value. However, if you have a turnkey home, you may receive a higher offer.
Furthermore, with the added service fee, repair costs, and closing costs, you may end up leaving a lot of cash on the table.
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» What’s My Home’s Value: You can know your home’s market value with Houzeo’s free Home Worth Estimator. It helps you estimate the amount you will get upon sale.
Opendoor.com Reviews
Opendoor has a 4.4 out of 5-star rating on Reviews.io based on 3,361 reviews. In contrast, they have a 1.13 out of 5-star rating on BBB based on 220 reviews.
The positive Opendoor reviews highlight the company’s easy selling process and responsive customer support. On the other hand, Opendoor complaints highlight their lowball offers and high repair costs.
Opendoor Reviews: Praises
✅ Lisa Cooper praised Opendoor for their excellent service, flexibility with closing dates, and the responsiveness of their assigned agent.
I would strongly recommend Opendoor to anyone considering selling a home. The service is top tier. They were very open as far as your closing date- you get to choose that date. Terrance (the agent assigned to my case) called, texted and emailed regularly to make sure all was well. He was very patient and helpful.
Source: Reviews.io
✅ Sheila Wingate commended Opendoor for their seamless process that also helped them get rid of the debt.
I was in a financial mess and it was getting worse everyday. I could not pay my mortgage I was barely keeping my utilities paid. So, I choose Opendoor thru seeing the many commercials that came on the TV. I needed a quick and easy sale and I got that with Opendoor I got more than enough to start over without all the debt hanging over me. I definitely recommend Opendoor for their quick and seamless process.
Source: Reviews.io
Opendoor Bad Reviews
❌ Sandra G criticized Opendoor for offering $50,000 less than the market value for their home as suggested by Realtors.
Our house was viewed by two realtors and they both gave us a fair market value to sell our home. We called Open Door to see what they had to say about our house. They came up with a bogus long list of things they would have to do, but the guy was only there for 5 minutes. They wanted to offer $50,000 less from the realtor said we could get. We went with one of the realtors and our house sold in 3 days for asking price. Open Door will rip you off.
Source: Better Business Bureau
❌ Bradley Edmonds criticized Opendoor for undervaluing their home and falsely claiming significant repair costs.
Open door is a damn joke. They came and appraised my house for 317000. Their initial price offer was 400200. On top of the 317000 they also said my house needed 48000 in repairs, it was completely remodeled within the last 3years. I recently (the same day as their appraiser came out) have had 3 cash offers that would give me 355000 cash with no service fees or closing as is. Opendoor is a joke and would do business with anyone else other than them.
Source: Reviews.io
Opendoor Pros and Cons
Here are some pros and cons of Opendoor to help you make an informed decision.
✅ Pros
- Flexible Closing Timeline: You get up to 60 days to close on your home. They also let you set a date as per your convenience.
- Zero Cancelation Fees: Opendoor doesn’t levy a penalty in case you want to reject the offer or cancel the sale.
- Late Checkout: Opendoor allows you to stay in the home for up to 17 days after the closing date. However, you have to pay additional fees to avail this service.
- Streamlined Process: With Opendoor, you can sell your home without the need for open houses, showings, or repair work.
❌ Cons
- Lowball Cash Offer: The reviews on Opendoor reveal that their cash offers are as low as 70% to 80% of your property’s Fair Market Value.
- High Additional Fees: You have to pay a 5% service fee, repair cost, and a 1% closing cost when you sell your house to Opendoor.
- Strict Eligibility Criteria: Opendoor doesn’t buy inherited properties, homes with tenants, or properties located in a flood zone, etc.
- No Scope for Negotiation: The cash offers you receive are non-negotiable. You may have to settle for a discounted sale price if you are in urgent need of cash.
- Limited Coverage: Opendoor only offers services in 51 markets.
Opendoor Competitors
» Jump to: Opendoor vs. Houzeo | Opendoor vs. HomeVestors | Opendoor vs. Mark Spain
1. Opendoor vs. Houzeo
Opendoor’s selling process may appear to be hassle-free. However, you get a reduced offer that is 70% to 80% of your home’s equity. Moreover, you get a cash offer from only one company.
On the other hand, listing your property on a cash marketplace like Houzeo can attract multiple offers. Your listing is syndicated to hundreds of real estate websites. So, you market your property to local and national cash home buyers looking for homes for sale.
| Opendoor | Houzeo | |
|---|---|---|
| Sale Price | 70% to 80% of FMV | Up to 100% of FMV |
| Customer Rating | 4.4 stars (3,361 reviews) | 4.9 stars (10,095+ reviews) |
| Closing Timeline | 14 to 60 days | 2 to 60 days |
| Coverage | 51 metro areas | 47 states + Washington D.C. |
| Fees | 5% service fee | $399 |
| Closing Costs | ✅ | ✅ |
| Scope for Negotiation | ❌ | ✅ |
| Repair Costs | ❌ | ✅ |
| Compare Offers | ❌ | ✅ |
| Highest and Best Offer | ❌ | ✅ |
2. Opendoor vs. HomeVestors
Opendoor provides its services in only 51 markets in the US. Moreover, there is no score for negotiation with them.
In contrast, HomeVestors offers near-nationwide coverage and provides an opportunity to negotiate, potentially securing a better deal.
3. Opendoor vs. Mark Spain
Opendoor is one of the fastest iBuyers. If your home requires minimal repairs and you need cash urgently, you can close within 14 days.
With Mark Spain Real Estate, you can receive a cash offer on your home in as little as 21 days. You get to avoid showings and open houses with them.
Is Opendoor Worth It?
Yes, but only if you’re willing to accept their lowball offers. Furthermore, their high service fees and repair costs can significantly reduce your net proceeds.
Alternatively, with Houzeo, you may get 100% of your home’s Fair Market Value. With Houzeo’s 5-star customer support and stellar technology, you can manage multiple cash offers and request the highest and best offer.
» Houzeo Reviews: Here’s why 10,000+ home sellers have rated Houzeo 4.9 stars out of 5 on Google and Trustpilot.
Frequently Asked Questions About Opendoor Reviews
1. How does Opendoor work for sellers?
Opendoor makes selling easy by providing a fast, online offer after you enter your home details. Check how Opendoor works to simplify your home-selling process.
2. How does Opendoor make money?
Opendoor makes money through service charges on homes they buy, closing costs, and other Opendoor services related to title and escrow.
3. How much does Opendoor charge to buy your house?
Opendoor fees include a 5% service charge, plus additional costs for repairs and closing.
Reviews
(11 Reviews)
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John
Verified Reviewer
All sounded good with initial offer. Then after they came to look at house. Lowered offer by 30,000.00 and said it needed over 30,000.00 work. House has new kitchen, new floors, new paint in and out and brand new A/C. They prey on people that are in a bad way (desperate). So wrong. Don’t know how they sleep at night
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Sharon
Verified Reviewer
13th Oct 2023
As a real estate agent, I don’t like Opendoor. The listing agent is in another city and always difficult to reach. The offer process is ridiculous because you can’t reach anyone and/or know if the property is already under contract when you may be writing one. And in our market they ALWAYS replace the carpet with ugly brown carpet.
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Jeff – Realtor
Verified Reviewer
13th Oct 2023
Opendoor has a nifty concept but is atrocious to deal with as a buyers agent. You can’t get a hold of anyone useful or knowledgeable about the local area. The process is stressful and properties overpriced.
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Zorica
Verified Reviewer
13th Oct 2023
They gave my contact info to local real estate agency and their fee is 6% of sold price.
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Mike Bennett
Verified Reviewer
13th Oct 2023
Terrible customer service. Paid 500.00 3 days ago and it’s still not listed. No one will answer a phone call
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Tod G. Franklin, Real Estate Broker Dallas Texas
Verified Reviewer
13th Oct 2023
I call them Brokendoor because almost every time I show one of their homes the foundation rides like a roller coaster. Their business model attracts desperate sellers with some condition causing the home to not be retail saleable in MLS. Brokendoor gets these homes at a discount and does little to get them market ready. Its a perfume on a pig approach to flipping. Buyer beware I tell my customers when it comes to Brokendoor homes. They are more likely to paint a home than fix a foundation is what I usually see.
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Karl Turner
Verified Reviewer
18th Oct 2023
Opendoor was not a pleasant experience but it may work for you.
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Karl Turner
Verified Reviewer
18th Oct 2023
Did not like the experience at all.
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Jeneane H.
Verified Reviewer
21st Oct 2023
This company wasted my time by giving me an initial offer, setting up a virtual walkthrough of my home, and then informing me a week later that they revoked the offer due to low resale numbers in my area. Not impressed!
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Sterling Leavitt
Verified Reviewer
24th Oct 2023
While the concept is sound, they seem to be all over the place in my local market. I have not yet found a seller that was greatly joyful after their sale. Buyers tend to have low opinions of working with the purchase of an Opendoor property. As an agent, I do struggle often with being able to work with a person in a timely fashion and when we need to have a conversation about negotiations, this a an often painful process. I have attempted to work 8 clients through the process, none wanted to continue after the first failed contact
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Unethical work dealings
Verified Reviewer
2nd Nov 2023
This company is the worst. They lowball offer you. The offered my clients an amount $40k below asking price. They told us we can sign up and just cancel anytime the due diligence period. We told them that we still want a higher payout on the home. So we relisted it for a lower amount but higher than what they were willing to pay. After 2 days of relisting it on a lower amount, we decided to accept their offer. They didn’t advise us not to change the price etc. 2 days after we accepted, they withdrew due to the changed price. What an awful company.
