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Opendoor values Openness

Reading Time — 3 minutes

September 13, 2016

By Jd Ross

Reading Time — 3 minutes

September 13, 2016

Recently, there was an op-ed published about our company, Opendoor, and we wanted to take some time to clarify how our business operates, particularly with our valued agent partners.

At Opendoor, one of our core operating principles is building openness by giving and getting feedback early and often. We especially value feedback from the home sellers, buyers, and agents that we are fortunate enough to work with. For us, openness isn’t just about hearing feedback – it’s about being open to making adjustments along the way.

Opendoor’s money-back guarantee covers the agent’s commission and transaction costs

Opendoor’s mission is to make the process of buying or selling a home as seamless as possible. Our 30-day money back guarantee allows home buyers to return their home for any reason if they aren’t completely satisfied. Homebuyers love the program and have told us that it reduces stress and brings them peace of mind. We believe that should extend to the agents they work with.

Opendoor’s guarantee program originally didn’t refund buyer agent commissions or transaction fees, but we changed the policy immediately after receiving feedback from our agent partners. When a buyer returns a home, Opendoor will refund the full buyer’s agent commission, as well as all transaction fees. No agent has ever or will ever be asked to pay back a commission.

Around half of Opendoor sellers pay only 6–7% to sell to Opendoor, few pay over 10%

Over the past 3 months, 46% of our Phoenix customers paid 6 to 7% fees, and only 8% of customers paid above 10%. We are always working to lower fees and pass our cost savings back to our customers.

Opendoor charges a higher fee in instances where we purchase a home with a thinner market of potential buyers. Sellers understand, value, and are often relieved to have the option of letting Opendoor take on that risk and uncertainty and we are very transparent about this with the seller.

Opendoor passes on wholesale repair savings to customers

On average, we lose $1,750 per home to repair costs in order to save customers weeks of hassle and thousands of dollars during the transaction. Since we manage wholesale contractors on their behalf after they’ve moved out and don’t make any money on repairs, we can pass those savings on to the seller.

Opendoor makes full value offers with full transparency

There are homes we make money on and homes we lose money on. There are also outliers on either side. However, our data shows us that on average, sellers who work with us get the full market price, especially when you consider the renovation work we put into each home.

We always share our valuation process alongside our offers, and we encourage sellers to ask questions and share any additional information or comps we may have missed.

We value feedback from our community

We understand that real estate transactions can be an emotional process, and we will continue to be transparent as we focus on providing a world-class experience for our customers and agent partners alike. We appreciate and welcome your feedback, and if you have any, please tweet me @justindross.

Further reading

Opendoor introduces cash-backed offers, increasing buyers’ chances of winning their dream home

Opendoor introduces cash-backed offers, increasi...