Company News
Opendoor introduces cash-backed offers, increasing buyers’ chances of winning their dream home
Reading Time — 4 minutes
March 3, 2021
By Tom Willerer
Reading Time — 4 minutes
March 3, 2021
It’s no secret that we are experiencing a historically competitive residential real estate market. And this is due to a few record-breaking reasons.
At the end of 2020, the available housing inventory nationwide was just 1.07 million homes. Put into context, that’s the lowest number since 1982. Interest rates continued to reach all-time lows, currently at 2.81% for a 30-year fixed mortgage rate, driving more people to buy. Plus, 28 million Americans say they plan to purchase a home in the next 12 months.
While that can sound daunting, it doesn’t have to be. Purchasing a new home is one of the biggest milestones in people’s lives — and it should be an exciting one, not a stressful one. Today, Opendoor launched cash-backed offers, a new benefit of buying with Opendoor that could double buyers’ chances of winning their dream home when they make an offer. According to our data, buyers who made offers with Opendoor’s cash-backed offer program already have an average acceptance rate 50% higher than regular offers made without our cash backing.*
Buy with An Edge
All-cash home sales now make up about 36% of the market. Why? Sellers find cash offers more attractive because there is less chance of the transaction falling through during the financing stage. However, not everyone has enough money to make an all-cash offer. But with Opendoor, it’s now possible to reap the benefits of being an all-cash buyer.
No extra work. No surprises. And no additional costs. We give qualifying buyers the benefits of an all-cash offer while allowing them to skip the many hurdles required by other companies, such as a full pre-underwriting process or charging extra fees.
How does it work? Opendoor will back your offer with our cash. This means you can present the certainty of an all-cash offer to the seller, free of financing, appraisal, and home sale contingencies, even if you need a home loan. And if you want to move into your next home before you sell your current one, we can even buy your new home for you. You can move when you’re ready while we help you sell your old home with less inconvenience to you.
What does a buyer need to do? Get pre-qualified either with Opendoor Home Loans or another mortgage company, which only takes a few minutes. Opendoor Brokerage will then pair you with a local expert who will review your offer to ensure it’s strong before you submit it to the seller.
Buy with Confidence
If you’re not happy with your home, we’ll buy it back from you within 90 days.
Across generations, the most frequently cited reason for buying a new home this year is lifestyle changes caused by COVID-19, coming in ahead of the top reasons we usually see like getting married or having a baby. This could be due to the fact that more people are working remotely and want more space in the suburbs. And with low interest rates, some families can afford to buy sooner than expected. Whatever the reason, there are many new homebuyers entering the market and navigating the process for the first-time.
This can result in some buyers moving too quickly, making compromises for sellers, skipping important steps, or settling for a home they don’t love. In fact, data shows more than half of people who bought homes in the pandemic last year regretted it.
We know buying a home is a monumental decision, and we are here if you change your mind.
Buy with Opendoor
With this new offering, we’ve made cash-backed offers more accessible, enabling customers to compete in hot markets, and in a radically simpler way. Buying a home with Opendoor is managed fully online and through our app, which is the preference of 75% of home buyers we surveyed. But, the added benefit is that you have a team of experts behind you every step of the way.
Cash-backed offers are now available in the following markets: Atlanta, Georgia; Charlotte, North Carolina; Raleigh-Durham, North Carolina; Dallas-Fort Worth, Texas; Orlando, Florida; Phoenix, Arizona; Austin, Texas; San-Antonio, Texas; Houston, Texas; Riverside, California; Los Angeles, California; Tucson, Arizona; and Sacramento, California (coming March 2021).
Tom Willerer is the Chief Product Officer at Opendoor.
*As of February 22, 2021, over the prior 28 days.
Affiliation Disclosure: Please be advised that Opendoor Brokerage LLC, Opendoor Brokerage Inc., and Opendoor Home Loans LLC are wholly-owned subsidiaries of Opendoor. Because of these relationships, transactions with these entities may provide Opendoor a financial or other benefit. You are NOT required to transact with any of these entities as a condition of working with Opendoor. THERE ARE FREQUENTLY OTHER PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATES FOR THESE SERVICES.
