Some of the most frequently asked questions we get are, “What is your business model?” and “How does Opendoor make money?” This article will shed some light on those questions and help you understand our pricing and our vision for how real estate can be simpler, more convenient, and more transparent.
At Opendoor, we provide a radically simplified experience for selling and buying homes. For sellers, after yout tell us a bit about your home, we aim to have a competitive, cash offer in your inbox within 24 hours. Requesting an offer from us is free, and there’s no obligation to accept. If you like your offer, we’ll conduct a free home inspection, and then you choose your close date whether that’s a couple weeks or a couple months. You’re probably wondering “Okay, but there must be a cost.”
We collect a service charge, similar to a real estate agent commission but with more perks like the ability to move on your timeline, the certainty of an all-cash offer, and the ability to do the paperwork online.
Our average service charge typically falls between 6-8% and goes no higher than 14%. It varies based on how long we expect it’ll take to sell the home, and it helps us cover costs like maintenance, utilities, and taxes. In other words, we take on the risks and holding costs of the home so you can move on your schedule with the benefits of a cash offer.
Every Opendoor offer relies on our robust data model that analyzes thousands of recent home sales in your market, as well as insights from our teams of local real estate experts. You can learn more in our guide on how we calculate your home value. Our offer breaks down our service charge, some fo the comps we used, and an estimate of your net proceeds–the amount of money you’ll pocket at the end of the sale.
We also provide sellers with a free home assessment and a fair cost estimate of any repairs a buyer is likely to request. This allows you to skip the work and move on. We’ll handle the repairs after you move out and pass along any wholesale discounts from our vendor partners.
And if for any reason, a seller isn’t happy with their offer, they can walk away at any time before closing. Several of our competitors charge a penalty for this, but we believe our customers should be 100% confident in one of the biggest financial transactions of their lives.
→ See how the costs of selling to Opendoor compare to the traditional process.
Once we’ve purchased a home, we take on the maintenance, make any necessary repairs, and find a buyer. If you’re also buying a home, you can trade-in to save money and move seamlessly into your next place.
Explore our listings and tour a home from 6 am to 9 pm daily, no appointment needed. Just use our app to unlock the door. Finally, we allow you to buy directly from us, work with your agent, or we can connect you with the support you need.
Our vision is to empower people with the freedom to move. We want to make the process feel less like work, and more like fun. We also want to make it more affordable and transparent so you’ll be even more excited about your next chapter.
By Robbie Bernal