December 8, 2021

Selling a home the traditional way can be expensive, time consuming and stressful. From making your home “show-ready” and preparing for open houses, to dealing with contingent buyers and the costs of temporary housing and multiple moves, the traditional process leaves a lot to be desired.

That’s where Opendoor comes in.  Sellers choose Opendoor for the simplicity, certainty and convenience.  When you sell to Opendoor, you get the simplicity of an online platform, the certainty of a competitive offer and the convenience of skipping repairs and showings and choosing your moving timeline. 

We’ve heard from some customers that Opendoor’s pitch sounds too good to be true.  Let’s break it down to show you how selling to Opendoor compares to a traditional home sale.

At-a-glance comparison

Sell to OpendoorTraditional sale
Seller fees5% seller charge*6% commission (1)
RepairsNo out-of-pocket costsTo be negotiated with buyer
Estimated closing costs1-4%1-4% (2)
Home prep and staging costsNot applicableOften recommended
Seller concessionsNot applicableMay be requested by buyer
Homeownership and overlap costsAvoid costs by lining up your closing datesLess timeline control means more potential costs

* Beginning on September 30, 2020, for new offers, Opendoor’s service charge will be no more than 5%. Service charge is subject to change, and has historically been as high as 14%.

Seller fees

In a traditional sale, the seller pays commission fees for both their agent (the “listing agent”) and the buyer’s agent.  Traditional commission is 6% of the sale price, which is split between the listing agent and the buyer’s agent (3), but this can vary and is negotiable.

Even if you’re planning to save money by selling your home without an agent, you’ll likely need to pay a commission fee of about 3% to the buyer’s agent.  According to the National Association of Realtors, 88% of buyers have an agent.

When you sell to Opendoor, instead of agent commissions, we charge a service fee that covers the cost of buying, maintaining, marketing and selling the home.  Our current service fee is no higher than 5%, but it is subject to change.  When you receive an Opendoor offer, you know exactly how much your fee will be.  

Repairs

In a traditional sale, after you’ve agreed to an offer, the buyer will typically have the home inspected for any defects. Buyers may ask you to make any repairs yourself, or they might request a credit equal to their expected costs of making the repairs. Negotiating repairs can be a headache, and the costs are difficult to predict upfront because every buyer is different.

When you sell to Opendoor, you don’t need to list your home to get an offer, so you don’t need to invest in repairs or get your home “show ready”.  Instead, you simply request an offer and then complete a video walkthrough – either over a video call with an Opendoor representative or through our self-guided process.

The purpose of the walkthrough is to verify the condition of your home and identify if any repairs are needed.  If our assessment turns up any needed repairs, we’ll ask for a credit and deduct the costs from your net proceeds. This way, you avoid any out-of-pocket repair expenses that you might encounter in a traditional sale. 

Finally, we’ll do the repair work after you move out, so you can move on your timeline.  If you disagree with our repair ask, you can cancel anytime before closing without a penalty.

Closing costs

Closing is the final step of selling a home when money and documents change hands in order to transfer ownership of the property to the buyer.  Closing costs cover items like title insurance, escrow fees, and HOA transfer fees.  They typically range from 1% to 4% of the purchase price based on the different fees and legal requirements for each state and municipality.

Closing costs are part of every home sale, including selling to Opendoor.  You’ll see your estimated closing costs when you receive your offer.

Home prep and staging

In a traditional sale, you’ll typically need to make your home “show ready” to attract buyers.  Paying to stage your home isn’t required, but it’s often recommended.  This includes cleaning and decluttering your home, paying storage fees for furniture you need to hide away, and any cosmetic touch-ups like fresh paint, new carpet, or updated fixtures and appliances.

When you sell to Opendoor, there are no staging, storage or prep costs.  We give you a competitive, all-cash offer based on the important factors: comparable home sales, your home’s features, and current market trends.

Seller concessions

In a traditional sale, buyers often ask sellers to cover costs such as inspection fees, processing fees, transfer taxes and even agent commissions.  This is one reason why the highest purchase price isn’t always the best offer.

When you sell to Opendoor, you don’t have to worry about these types of concessions. You get the certainty of a competitive offer without having to pay extra to “sweeten the deal”.

Homeownership and overlap costs 

In a traditional sale, timelines almost never align perfectly.  It’s easy to overlook the costs for temporary housing or a double mortgage.  You may also need to pay storage fees and extra moving costs.  And if you end up holding your old home for a period of time, you’ll still be responsible for property taxes, mortgage payments, HOA free, utility costs and insurance.

When you sell to Opendoor, you control your timeline.  You choose your close date, whether it’s as few as 14 days or up to 60 days, and you have the flexibility to change that date if something comes up.  With Opendoor, you can line up your closing dates and avoid the extra costs of short-term housing, storage and holding costs during the transition period.

Takeaway

Each seller’s situation is unique, so when it comes to life’s biggest transaction, take into account the full costs of selling, the time and effort you want to invest in the process, and your ideal moving timeline.  The Opendoor team is here to help.

Get started requesting a free, no obligation offer from Opendoor.

References

  1. https://www.realtor.com/advice/sell/sellers-must-pay-closing-costs-too/; https://www.thestreet.com/personal-finance/how-much-are-home-sellers-closing-costs; https://www.millionacres.com/real-estate-market/homebuying/whats-average-real-estate-commission/
  2. https://www.rockethomes.com/blog/home-selling/cost-of-selling-a-house; https://www.realtor.com/advice/buy/reduce-closing-costs/; https://www.realtor.com/advice/sell/how-much-does-it-cost-to-sell-a-house/; https://www.zillow.com/sellers-guide/closing-costs-for-sellers/
  3. https://www.realtor.com/advice/sell/sellers-must-pay-closing-costs-too/; https://www.thestreet.com/personal-finance/how-much-are-home-sellers-closing-costs; https://www.realtor.com/advice/finance/realtor-fees-closing-costs/; https://www.ownerly.com/real-estate/average-commission-for-real-estate-agent/

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