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NAR Settlement: Built for this

Reading Time — 3 minutes

March 27, 2024

By Carrie Wheeler

NAR header

Reading Time — 3 minutes

March 27, 2024

From the very start, we’ve built our product with consumers at the center of all that we do. We are the largest platform in residential real estate that allows consumers to buy and sell homes directly, and we will continue to lead the future as we work to transform the U.S. real estate industry for the better.

While details are still emerging from the recent news on the National Association of Realtors (NAR) proposed settlement, it’s clear that the outcome of these industry suits could be great for consumers, pave the way for greater access to homeownership in America – and offer an  opportunity for Opendoor to make tremendous strides in achieving our mission of powering life’s progress, one move at a time.

Here’s why we feel this way.

The proposed NAR settlement is good for consumers:

The settlement removes the requirement for listing brokers to offer a preset commission to the buyer’s agent. Going forward, consumers who are selling will have more flexibility to negotiate commission rates below the standard 6%. Consumers who are buying will come to a separate direct agreement with their agent, or choose not to work with an agent. This is a seismic shift towards giving consumers more transparency and choice, principles central to how we’ve built our business and aligned with our values of providing consumers with certainty, simplicity and control. 

Opendoor was built to empower consumers:

From the outset, we've championed the consumer, dedicated to transforming the U.S. real estate industry for the better. Our digital product was the first of its kind, simplifying the highly stressful, expensive and time-consuming process of moving by offering certainty and ease during one of life's most important transactions.

Guided by fairness and transparency, we've remained steadfast in always putting the consumer first. Consumers have appreciated the clarity of our product, including knowing exactly what they’ll receive at closing. Our exceptional customer service ensures consumers feel empowered, knowing they’re always the priority with Opendoor.

Opendoor is shaping the future of real estate:

Americans pay some of the highest standard commissions in the world - roughly $100 billion annually. We believe the NAR settlement is a tipping point for more seismic shifts in our industry:

  • More transactions: We anticipate this change will help to unlock the housing market. Consumers will be more likely to move as the costs to transact go down, and Opendoor will be at the center of this transition to a more liquid and lower-fee market.

  • Lower transaction costs: Consumers who are selling their homes have attempted to negotiate fees down for years with some success. Transparency on buyer broker commissions could result in a similar transition, going from 2.5 to 3% today to something potentially much lower. As buyer broker commissions decline, and direct sales from listing agents to buyers increase, Opendoor will be able to lower the spreads we charge and offer higher cash proceeds to sellers at the same margin.

  • Direct transactions: We expect to see more consumers deciding to transact directly instead of listing on the MLS. Opendoor has been building this future for the last ten years, and we are perfectly positioned to capitalize on this change, including via our marketplace.

As for our agent partners and community, our Opendoor for Agents program will continue to offer certainty, transparency and speed – especially now as agents navigate these shifting conditions. 

Opendoor was built for this moment. We’ve been on this path from the beginning and welcome the change. Our business succeeds when consumers are happy — happy with our offers on their homes and happy with the experience they have with us — not from hefty commissions and complexities weaved into a highly stressful transaction.

Selling and buying a home has been opaque, complex and riddled with uncertainties for too many consumers. We’re changing that with a simple, certain and transparent offering. We’ve never been so optimistic about the future. What's great for consumers is great for Opendoor and our partners in the industry.

Carrie Wheeler is the CEO of Opendoor.