Is Opendoor a home flipper?

We are not a home flipper, and this is a common misconception about our business.

Home flippers aim to fix and flip homes for maximum price appreciation. Their business model is to buy low and sell high, whereas our model is to make a competitive offer and provide a service. In exchange, we charge a fee for that service. The service we provide is the certainty of an all-cash offer on your home and the ability to move on your own timeline; we’re also dramatically simplifying the home selling process for a better experience overall. We’re often credited with launching what’s being called the iBuyer business model in the real estate industry.

Good condition at a competitive price

Unlike home flippers who often target distressed properties purchased in desperate circumstances, we focus on homes that are in good condition, and we aim to offer a fair price. One of the reasons we are so specific about the types of homes we purchase is because we are confident that our valuation model works well for homes that fit those criteria. Read more about the types of homes we buy and the markets we’re in.

A fee-based model

Rather than a buy-low, sell-high investment strategy, our business model is fee-based. Our service charge varies based on how long we predict it will take to resell your home. Our average service charge typically falls between 6-8%, but the actual service charge could be between 6-14% depending on market conditions. We take on the risk and holding costs of owning the home so our customers have the certainty of a competitive offer and the flexibility to move when they’re ready.

Learn more:

• How Opendoor makes money
• How Opendoor’s costs compare to a traditional sale
• Most common misconceptions about Opendoor
• What is an iBuyer?