Opendoor is a company stating their aim is to create a new and radically simpler way to buy and sell a home. The company currently offers their services in over 40 select cities throughout the United States.
Inman, a leading publication for real estate professionals, has recognized Opendoor as the most innovative company in real estate. The company is headquartered in San Francisco, with over 1,200 employees nationwide.
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 Opendoor Work?
Simply speaking, the three overarching steps to selling your house on Opendoor includes:
- Entering your home details to get an offer in a few clicks
- Accepting your offer and getting a free assessment of your home
- 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.
The Bottom Line
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.
If you have any experience with Opendoor or their services, please leave your reviews below.
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