In 2014, Opendoor was launched to reinvent a new, radically simpler way to buy and sell your home. The company recognizes that selling your house is one of the most important transactions in your life, so they have dedicated themselves to creating a platform that will empower everyone with the freedom to move.
Opendoor currently offers their services in ten cities, including Atlanta, Las Vegas, Charlotte, Nashville, Dallas-Fort Worth, Minneapolist-St. Paul, Orlando, Phoenix, San Antonio, Raleigh-Durham and Tampa.
Inman has recognized Opendoor as the most innovative company in real estate. The company also is the industry’s leading source of real estate information for the past three years. The company is headquartered in San Francisco, with over 600 employees across their markets.
Opendoor simplifies the selling, buying and trading process of a home and helps you move onto your next chapter of your life without all the hassle. It allows you to sell your home online so you can skip the hassle of listing, showings and months of stress.
They offer a competitive cash offer with no financing fall-through risk, so that you can focus on buying your new home. Opendoor allows you to close the deal in just a few days at a competitive price, with transparent fees and pricing.
Comparatively, a traditional home sale would usually involve an average of 50 days on the market before closing and you may sometimes encounter a buyer that falls through, and possible hidden fees and costs.
How Does It Work?
Simply speaking, the three overarching steps to selling your house on Opendoor includes:
1) Entering your home details to get an offer in a few clicks
2) Accepting your offer and getting a free assessment of your home
3) Close on your timeline and get paid within a matter of days.
Opendoor will ask you for your home’s most unique features and they’ll use the details to give you a more precise offer. The company will also compare your home to the houses that have been recently sold near to your location and this information will be shared for your review.
If you are happy with Opendoor’s offer, you can then choose a closing date. Most important to note, is that you have the ultimate decision to determine what you would like your timeline to look like.
Once you’ve been paid, you will have successfully finished the sale without any listings, showings or waiting.
Conversely, if you are buying, you can easily visit hundreds of Opendoor homes so that you can quickly search for the perfect one and purchase it on your own terms.
Opendoor also has an app that allows you to instantly unlock and tour homes on any day of the week from 6am to 9pm. Upon finding a home you love, you can make an offer for it through the app, or you can also get in touch with an Opendoor Home advisor who can help you answer any questions you may have.
Lastly, if you would like to sell and get a new home through Opendoor, you may choose to use the Opendoor Trade-In. The Trade-In program allows customers to choose from any home on the market (not limited to Opendoor homes), and sell their current home to Opendoor, thus closing both homes on the same day.
This allows homeowners to close the sale as soon as possible and allows for more freedom.
Cost and Price Plans
For sellers, the charge averages around 6.5% and goes no higher than 13%. This varies based on how long Opendoor predicts they will take to sell the home. This fee helps the company take on the risk and helps cover the holding costs.
Other fees include repair fees, closing costs and real estate agent commissions. If any repairs are necessary, Opendoor will estimate the costs and you may choose to complete the repairs yourself, or let the company help you.
The closing costs include title insurance, escrow fees, and HOA transfer fees which typically range from 1%-3% of your home’s value.
Finally, if you work with a real estate agent to sell your house, you will need to pay them the listing commission and the buyer’s agent’s fee. The commission fees for these usually total to about 6% of the sale price.
However, if you sell to Opendoor without using an agent, you will not have to worry about these commission fees.
Opendoor has received mixed reviews. They have several 5-star reviews that have praised Opendoor for its truly hassle-free process. Some customers who have had trouble selling their houses found that Opendoor made it a lot easier.
Many also appreciate the viewing process since they had many options. Some have also praised the Opendoor website (opendoor.com) since it is user-friendly and easy to use.
However, the negative reviews are also abundant. Many customers have reported that the company has poor communication and did not offer fair prices for their homes. Communication was either absent or incredibly slow.
One of the biggest concerns is that the company did not do proper inspections.
Upon asking for refunds, Opendoor has apparently told customers that since no problems were found during inspection, the customer cannot do anything, but live with any broken items and appliances in the new home.
Competitors and Alternatives
Similar to Opendoor, there are other sites that can help you with buying and selling your home.
Looking at Opendoor VS Redfin, you can find that Redfin.com uses agents who will help you through the process, planning your selling motivations and timeline. Redfin also has an open house strategy but actually shows you buyer demand so you can determine better pricing with the market information.
Another option you may consider is Zillow.com. Between Opendoor vs Zillow, you will find that Zillow has an option to rent, unlike Opendoor and Redfin. Zillow’s website also allows you choose between agents, an option that is not offered in the previous two examples.
Another option for buying and selling your home is Offerpad. Looking at Opendoor VS Offerpad, the biggest difference is that Offerpad prides itself in the lack of showings and open houses and provides a free local move. Similarities include allowing you to pick your closing date and offering repair services if necessary, and if you choose.
Where to Buy?
To use Opendoor’s services, all you need to do is visit their website at opendoor.com. Whether you’re selling, buying or trading in, the user-friendly website will guide you as you go along.
For buying though, you may want to download the app. The app will allow you to view listings more easily and allow you to tour homes.
While Opendoor has many perks, many customers have complained about poor/no communication in general. There are some major issues with repair controversies as well. This means that you must be more wary as a consumer.
However, you should also consider how some customers have greatly benefited from the convenience and hassle-free purchase process that the company offers. You should decide if you’d like to use Opendoor based on your situation.
1 ‘OpenDoor.com’ Review
So, my husband and I have recently begun relocation cross country to his hometown. When I got a very good job offer it put some urgency into selling our home. We only had it on the market about a month before we decided to go with Opendoor. I knew we would not make a big profit, but since I had good equity, we would be okay with the settlement. I had read all the reviews, done some research and even retained my agent for the process at my expense. The offer was very low, and the fees are very high, the cost of convenience I suppose. At this point the repairs came out to 4,300. A bit high, as if I am paying for improvements for them to flip it, but again, perfect victim due to urgency. This is where it gets bad, really bad, I am already losing tens of thousands versus a market sale, I am in my new hometown closing remotely. The mobile notary comes to my Airbnb on Wednesday, we sign, husband signs in Texas. Done. Nope, TWO hours after closing I am informed the math was wrong and it would be 6K less! After closing! People, I cannot stress enough the fact that this was AFTER closing! The first story was Opendoor commission, the second was taxes, nobody really knows. They just want an extra 6k and since I am even more pressured with pending home purchase, I believe they thought I would have no choice. Wrong, I went through the settlement sheet and every department that let the error slip was forced to rebate their fees, my agent reduced hers and they made up the difference. Did I mention I am in leadership?? The story is not over though, as I sit here on the east coast on Friday afternoon, still no funds. They can’t seem to put a trace on the wire that they documented as executed on Thursday and was not executed until this morning. But, still NO funds. I call the closer and she informs me that that they accidentally sent a live check via FedEx to the property address they now own, in Texas, and the wire transfer tracking number I was provided was for my agents funds not mine. Please note the finance company and title company are owned by Opendoor. To conclude, it is 5:15 EST on Friday and I just got funded on a transaction from Wednesday. My closer was genuinely upset and did resolve it, but had it not been for multiple calls to the office, my bank, my mortgage company and agent it could have been weeks. Only use Opendoor to get rid of a mortgage payment, nothing more. There are people that depend on the equity to buy a new home and with Opendoor you will not be sure even after closing.