Opendoor customer reviews | Fees | Selling to Opendoor | Buying from Opendoor | Best alternatives to Opendoor
What do you get with Opendoor?
When you want to avoid the hassle of a traditional listing, Opendoor offers a quick and convenient alternative. The company can make an instant ballpark offer and close on your timeline — no need for repairs, showings, detailed inspections, or lengthy negotiations.
However, Opendoor pays less than market value for homes, and the latest data suggests its offer amounts are declining to well below what they were a couple of years ago.[1]
Opendoor also charges a 5% service fee, plus repair and closing costs. Real estate agents also typically charge a 5–6% commission, but you'll usually receive higher offers and have more control over repair costs.
Customer reviews for Opendoor are generally positive. The company has a weighted average rating of 4.2/5 across 3,501 reviews on Trustpilot, Reviews.io, and the Better Business Bureau. But negative Opendoor reviews mention high repair costs, which can lower the final profit on your sale. And some buyers report problems with repair quality and closing delays.
Should you use Opendoor?
If you're looking for a quick, hassle-free sale with a legitimate real estate company, Opendoor offers some definite benefits:
- Speed. You'll receive an offer within 24 hours and you can close within a couple weeks if needed.
- Convenience. Opendoor will take care of repairs, and you can skip the hassle of showings and negotiations.
- Flexibility. You can choose and modify your closing date without penalty.
However, there are a couple of drawbacks to keep in mind:
- You'll sell for less than market value. Recent Opendoor offers have been below market value and tend to be dramatically lowered after the home inspection, when repair costs are assessed.
- Only certain homes qualify. Opendoor generally only buys single-family homes and townhomes, valued at $100,000–600,000. It currently makes offers in about 50 cities in the U.S.
Before you accept an offer from Opendoor, we highly recommend comparing it to offers from a few other cash buyers. You should also have a good idea of what your home could sell for 'as is' through a traditional listing. That way, you can make an informed decision and possibly even generate some competition among buyers, upping the potential sale price even without making repairs.
Compare multiple offers from trusted cash buyers in your area against the sale price you'd get with an agent. Clever Offers is free, and there's no obligation to move forward with an offer. Simply tell us about your property, and we'll do everything we can to get you the best possible offers for your home.
What is Opendoor?
Opendoor is an iBuyer — a real estate company that buys houses for cash and then resells them on the open market.
Opendoor operates in over 50 cities across the country, and it buys more single-family houses than any other iBuyer. As with most iBuyers, Opendoor's offers are designed to be lower than actual market value.
| 💰 Service fee | 5% of sale price |
| ⭐ Average customer rating | 4.2/5 (3,501 reviews) |
| 📍 Locations | AL, AZ, CA, CO, DC, FL, GA, ID, IN, KS, MA, MI, MN, MO, NC, NM, NV, NJ, NY, OH, OK, OR, SC, TN, TX, UT, VA |
| ⏱️ Closing timeline | 14–45 days for buyers, 14–60 days for sellers |
Is Opendoor legitimate?
Yes — Opendoor is a legit company that buys and sells single family homes in over 50 cities across the country. Opendoor charges a 5% service fee to home sellers and can close in as little as 14 days, but the company's instant offers are below market value. Opendoor fees are deducted from the home's sale price.
Opendoor was founded by Eric Wu in 2014 as the first iBuyer. Other companies, like Offerpad, work similarly to Opendoor.
Opendoor has raised a combined total of $1.9 Billion from venture capital investors since 2013, and went public on December 21, 2020.[2]
Home buyers can also use Opendoor's cash to make a non-contingent cash offer in a competitive market.
» JUMP TO: What actual customers think of Opendoor
How does Opendoor work for sellers?
Selling your house directly to Opendoor is usually a simple process. Here’s how it works.
1. Request an Opendoor preliminary offer
To get an Opendoor preliminary offer, you fill out an online form with basic details about your property. If your home is eligible, you receive an initial cash offer, usually within 24 hours.
2. Schedule an inspection
Your final offer is contingent on a home inspection, which you schedule after receiving your preliminary offer. The inspection's thoroughness can vary, but several sellers told us the in-person inspection was surprisingly quick.
For example, Bradley Carpenter only had to submit photos of the rooms of his house. He said, “They don't do an interior inspection. They just sent these three guys out and they just walked around the house, basically an exterior inspection.”
That said, Opendoor has gotten pickier about which properties it buys, so it's possible that the home inspection will be more thorough.
3. Sign the purchase agreement and choose a close date
After the inspection, you receive your final cash offer. This offer accounts for any necessary repairs, which vary but can be tens of thousands of dollars. You can walk away without penalty if you don’t think the offer is a fair price.
If you sign the purchase agreement, you get to choose your closing date. Opendoor also lets you change your closing date as long as it’s not within seven days. Opendoor generally uses its own title insurance company, which requests documents from you via email.
You can also stay in the home for up to 17 days after closing using Late Checkout. Opendoor charges around $100–400 per day and asks for a $2,000 security deposit.
Verify the Late Checkout fees beforehand. We talked to one seller who said Opendoor allowed him to stay for seven days after closing for free.
4. Close and get paid
On your closing date, you follow instructions on the Opendoor app. The instructions include uploading photos of your property on the day you move out. If you paid for Late Checkout, Opendoor returns your security deposit to your account shortly after closing. It deposits the funds from the sale into your account within a few days.
Opendoor preliminary offer vs. final offer
Keep in mind that a preliminary Opendoor offer is almost always higher than the final offer, so it's best to take it with a grain of salt. That's because the "instant" cash offer is an estimate based on information you provide Opendoor about your home's size, age, and features. It doesn't account for the actual condition of your home.
Jesse Zappia of Charlotte, North Carolina, sold his home to Opendoor in 2022. He recalls a nearly $40,000 difference between Opendoor's preliminary offer and final offer price: “Their initial offer was somewhat closer to the $600,000 number. And then when they came back and gave me a final offer, it was, I think, $560,000 or something. So it was a significant jump.”
Opendoor fees
Opendoor fees include a 5% service charge. But you also need to pay for repairs and closing costs, which can both vary substantially. Closing costs are generally around 1–3%, while repair costs start at 1–2%.
| Service fee | 5% |
| Closing costs | 1–3% |
| Repair costs | 1–2% |
| Total | 7–10% |
Several Opendoor reviews complain about repair costs being tens of thousands of dollars, substantially lowering the final offer.
For Bradley Carpenter, who sold his home to Opendoor in 2022, the company's repair fees were about $7,000 — just over 3% of the offer price.
However, Carpenter negotiated by showing Opendoor a competing offer from Offerpad. He said, “I sent [Opendoor] the Offerpad offer, and I said, ‘Hey, Offerpad offered me $3,000 more than you. Are you guys willing to come up a little bit?’ As a result, Opendoor reduced their bill for repair fees by $3,000."
If repair costs seem high to you, you can try to negotiate or reject the offer without penalty.
Compare offers from top cash buyers — including iBuyers like Offerpad and Opendoor — plus get an expert realtor's opinion on what your house is worth.
What kinds of homes does Opendoor buy?
Opendoor has high standards for the homes it buys. Your property needs to be:
- In fairly good condition
- A single-family home or townhome (condos and duplexes are accepted in some areas)
- Constructed after 1930
- Worth under $1.4 million (ideally $100,000–600,000)
- With clear ownership
- Owner-occupied or vacant at close
Distressed or hard-to-sell properties tend to not qualify. For example, Opendoor doesn't purchases properties that:
- Are in foreclosure or short sale
- Are damaged by fires, floods, or natural disasters
- Use septic systems
- Contain unpermitted additions
- Are in a flood zone
- Contain dated building materials
- Have significant structural or foundational issues
Even if your property meets Opendoor’s criteria, there’s no guarantee the company will make a cash offer. Other factors, like local market conditions, also determine whether Opendoor will buy your house.
Opendoor’s cancellation policy
According to Opendoor's website, you can cancel your contract at any time before closing.
There's no penalty for canceling the sale. Opendoor's main competitor, Offerpad, charges a 1% cancellation fee.
How does Opendoor work for buyers?
Buying from Opendoor is similar to buying the traditional way. Here’s how it works.
1. Search for properties online
You can search for homes to buy through Opendoor’s website. By default, Opendoor lists all homes for sale on the local MLS. If you want to see only homes owned by Opendoor, go to the More Filters menu and check the box “Opendoor homes only.”
2. Get pre-approved for a mortgage
You need to get pre-approved for a mortgage before you can tour Opendoor-owned homes. Opendoor is partners with a mortgage provider called Lower. While Opendoor may recommend working with Lower, you have no obligation to do so. Shop around to make sure you get the best mortgage deal.
3. Tour a house with the Opendoor app
When you find a home you like, you can schedule a tour. You can self-tour most Opendoor-owned homes via the Opendoor app. Just choose a time that works best for you and tour without a real estate agent. Homes that Opendoor doesn't own typically require an agent to be present during the tour.
4. Make an offer
To make an offer on an Opendoor house, you can use your own agent. Opendoor often lists two prices on its homes — one if you make an offer with your real estate agent and a lower one if you buy "directly" from Opendoor. The buy direct option gives you almost no room to negotiate, which is why the price is lower.
However, even if you make an offer with an agent, don’t expect Opendoor to negotiate much on its price.
Barry Richards, Principal Broker at EXIT Realty Garden Gate Team in Springfield, Tennessee, told us that Opendoor tends to price homes high and wait until someone is willing to meet that price. He said, “They don't tend to negotiate much on whatever current price they have.”
Opendoor may recommend you use an Opendoor agent if you don't already have a realtor. You have no obligation to do so, and you can proceed with or without your own realtor.
5. Schedule an inspection and close
If Opendoor accepts your offer, you need to schedule an inspection and negotiate any repairs and closing costs. Unfortunately, Opendoor homes sometimes have rushed repair work, so make sure you get a thorough inspection.
After you sign the agreement and finalize the inspection, you can choose your close date. The entire buying process typically takes 14–45 days.
🔑 Opendoor Exclusives
Opendoor Exclusives is an off-market list of homes that Opendoor is offering at a lower price. The homes are ones that Opendoor has purchased and renovated. They are listed at a discounted price for 14 days. If they don't sell, they're listed on the MLS for a 2–4% higher price.
Other Opendoor services
Aside from instant cash offers, other Opendoor services include title insurance and financial services through its partnership with Lower. Because of market conditions, a few Opendoor were discontinued, such as Opendoor Home Loans.
Opendoor Buy & Sell
Opendoor Buy & Sell (formerly Opendoor Complete) allows you to coordinate selling your current home and buying a new one. That way, you can avoid multiple moves, mortgages, and closing dates. You sell your home directly to Opendoor, use the company's cash to make an offer on a new home, and coordinate closing dates.
Opendoor Title
In 2019, Opendoor acquired OS National, a national title insurance company.[3]
As a result, Opendoor can now offer title insurance and escrow services to customers internally through Opendoor Title.
Refinancing with Lower
Opendoor is partners with Lower, a financial technology platform, to help customers save money when refinancing their mortgage.
Opendoor reviews from real customers
The majority of Opendoor reviews from customers are positive, with a weighted average rating of 4.2/5 across 3,501 reviews.
| Rating | Total reviews | |
|---|---|---|
| Weighted avg. | 4.2/5 | 3,501 |
| Reviews.io | 4.4/5 | 3,222 |
| Better Business Bureau | 1.2/5 | 202 |
| Trustpilot | 1.4/5 | 77 |
What customers like about Opendoor
Positive Opendoor reviews focus on:
- Fast, seamless transactions
- Done-for-you selling experiences on the customer's timeline
Positive Opendoor reviews tend to focus on the fast, convenient service. Sellers often appreciated Opendoor’s convenience — even if it meant a lower sale price — because they didn’t have time to list their home and wanted to choose their closing date.
For example, this seller said: “I was working a full-time job and building a new home (personally). I did not have time for a real estate company and dealing with an agent, showings, and all the things that go into that. Opendoor made it very easy to show my home, proceed through closing, and sell my home with minimal effort.”
Other positive Opendoor reviews say that customer service was responsive and quickly addressed any issues.
For example, this seller appreciated that “everyone was very professional and was there whenever I needed any assistance.” Another said, “My contact was amazing and very communicative. Professional and no-pressure style.”
Common complaints about Opendoor
Negative Opendoor reviews focus on:
- Inflated repair costs
- Final offers that were much lower than the initial estimates
- The inability to negotiate Opendoor's offer price
- Shoddy repairs on homes Opendoor bought and sold
Negative Opendoor reviews have increased since 2022. This trend likely reflects Opendoor making lower offers and being more selective about what properties it buys than it used to.
Many Opendoor reviews from sellers mention final offers being well below initial offers. For example, this reviewer said, “I was given an initial quote that was around market value. Went through all the steps and when the final offer came in it was over $100,000 less than the initial amount.”
Opendoor reviews from buyers focus on the lack of price negotiation and low-quality repairs.
For example, this buyer claimed, “After [Opendoor was] refusing to negotiate on price and not disclosing any issues on the house, we paid near the top of the appraised value for a house from the 70's and so far it's ended up having extensive severe termite damage, live termites, leaky pipes, and poorly installed new flooring that isn't level and is breaking apart.”
If you're viewing an Opendoor property, bring a real estate agent who can help you spot potential problems, and get a thorough home inspection before closing.
Top Opendoor alternatives
Sell to another cash buyer
Opendoor isn’t the only option if you want a quick cash offer. You can also get offers from other local investors, another iBuyer like Offerpad, or a "we buy houses" company.
| Company | Clever Rating | Best for | Service Fee | Time to Close | |
|---|---|---|---|---|---|
|
Best overall
|
Comparing multiple offers
|
None
|
Varies by offer type
|
Learn More | |
|
Convenience over sale price
|
5%
|
8–90 days (flexible)
|
Learn More | |
|
Hard-to-sell homes
|
None
|
7–14 days
|
Learn More |
Clever Offers
Clever Offers is a free service that helps you quickly compare offers from reputable cash buyers in your area, including iBuyers like Opendoor.
When you contact Clever, a member of its team (called a Concierge) will ask you about your priorities. Then they'll connect you with multiple cash buyers — including iBuyers like Offerpad and Opendoor — to place offers on your home.
In addition to creating healthy competition among buyers, Clever Offers can introduce you to custom solutions — like novation agreements or seller financing — that may net you more money while still offering the hands-off convenience of a cash home sale.
A Clever Concierge will walk you through your options and answer all your questions. You'll also get a professional home valuation, so you can compare cash offers to your home’s market value.
» MORE: Get up to 10 competing cash offers — no added fees or commissions
Offerpad
Offerpad is the second largest nationwide iBuyer and Opendoor’s main competitor. Like Opendoor, it provides cash offers within a few days and can close quickly. It also has similarly strict criteria for the properties it buys, avoiding homes in poor condition.
Offerpad’s 6% service fee is slightly higher than Opendoor’s. And unlike Opendoor, Offerpad charges a 1% cancellation fee if you back out after accepting its cash offer. However, customer reviews suggest that Offerpad may be more open to negotiation.
While iBuyers offer a convenient selling process, you won’t get as much money for your home as you would selling with an agent.
» MORE: Offerpad Reviews: Everything You Need to Know
‘We buy houses’ companies
"We Buy Houses" Companies also make quick cash offers. They may be a good option if you need to sell quickly and have a home in poor condition.
Unlike iBuyers, these companies typically want to buy fixer-uppers at a bargain. And they often pay no more than 70% of what they expect to net after fixing and flipping a home.
» MORE: Need a Cash Offer? 10 Companies That Pay Cash for Houses
List with a real estate agent
While real estate agents can’t guarantee a fast sale, they can create a strategy to sell on your timeline. And selling with a realtor is usually the best option if you want to maximize your profit.
Agents can get you more money for your home by creating competition among multiple buyers. Also, agents have an incentive to get the most money for your home, since the more you make, the more commission they earn.
A traditional real estate agent charges 2.5–3% in commission, but you can find full-service agents who charge a lower listing fee, around 1.5–2%. That’s lower than Opendoor’s service fee.
We recommend interviewing multiple agents before you choose one.
» MORE: The Best Low Commission Realtors and Brokers
How Opendoor makes money
The Opendoor business model is to buy houses and then resell them on the open market for a profit.
Opendoor used to buy houses close to market value. But now its offers are well below market value, according to data from real estate analyst Mike DelPrete. That means it makes a greater profit on each resale.
Opendoor also makes money with its 5% service fee. The company bases this charge on how long they expect it will take to sell the home on the open real estate market. Part of the fees go to cover costs of holding the home, like taxes, utilities, and maintenance.
Opendoor lays out their calculations for your home value and service charge for each offer in a report. The report details the price of comparable homes that have sold recently in your neighborhood. It also accounts for unique aspects of your home that could affect value, such as a finished basement, proximity to quality schools, and walkability to shopping or public transit.
The home assessment also includes repairs needed before Opendoor sells the house, and how the costs of these repairs will affect your home's sale price.
» MORE: Is Opendoor worth it?
Opendoor locations
Opendoor is currently active in these markets across the country:
- Alabama: Birmingham
- Arizona: Phoenix, Prescott, Tucson
- California: Los Angeles, Riverside, Sacramento, San Diego, San Francisco Bay Area
- Colorado: Colorado Springs, Denver, Northern Colorado
- Florida: Jacksonville, Miami, Orlando, Tampa, Southwest Florida
- Georgia: Atlanta
- Idaho: Boise
- Indiana: Indianapolis
- Massachusetts: Boston
- Michigan: Detroit
- Minnesota: Minneapolis–St. Paul
- Missouri: Kansas City, St. Louis
- Nevada: Las Vegas, Reno
- New Mexico: Albuquerque
- New York: Long Island, Lower Hudson Valley
- New Jersey: Various counties
- North Carolina: Ashville, Charlotte, Greensboro–Winston, Raleigh–Durham
- Ohio: Cleveland, Columbus, Cincinnati
- Oklahoma: Oklahoma City
- Oregon: Portland
- South Carolina: Charleston, Columbia, Greenville
- Tennessee: Chattanooga, Knoxville, Nashville
- Texas: Austin, Corpus Christi, Dallas–Fort Worth, Houston, Killeen, San Antonio
- Utah: Salt Lake City
- Washington, DC
FAQ
Does Opendoor pay a fair price?
According to industry experts and prevailing data, Opendoor pays less than what sellers could get on the open market, although offers can be stronger in a seller's market. At the beginning of 2023, offers from Opendoor were significantly lower[1] than Zillow’s estimated market value, according to iBuyer expert Mike DelPrete.
Does Opendoor negotiate?
You can ask an Opendoor representative to re-evaluate your cash offer if you feel like the company has missed key features of your home that could affect its value, but your ability to negotiate may be limited by the company's strict purchase criteria.
If you're buying a home from Opendoor, you or your buyer's agent can try to negotiate the price point, but according to Opendoor reviews, customers claim the company likes to sell close to the listing price.
Does Opendoor pay closing costs?
Opendoor does not cover closing costs — whether you're buying, selling, or trading in. This stands in contrast with a normal real estate transaction where who pays what closing costs is typically up for negotiation.
That said, one of the benefits of selling to Opendoor is there are no hidden fees. Everything, including how much you'll have to pay in closing costs, will be presented to you before you accept the final offer.
Are Opendoor offers legitimate?
Yes, Opendoor is a legitimate company to sell your home through. Your home purchase price will be lower than market value and you'll be subject to Opendoor fees, but the entire process is quick and stress-free. Selling with Opendoor is a great solution if you're looking to sell fast.
Which is better: Opendoor or Zillow?
Opendoor and Zillow used to be the top iBuyers in the industry. In November 2021, Zillow shut down its iBuying business.
Contact Opendoor
| [email protected] | |
| Phone | 1-888-352-7075 |
| Request an offer | opendoor.com |
