What You Need to Know About Opendoor

Even if your home is in a hot seller’s market, it could take you weeks to sell your property. From finding a real estate agent of your suiting to finally sitting at the closing table, the process is lengthy. So, what if you intend to move out fast?

This is where companies that buy houses for cash come in. Opendoor is one such firm. So, is Opendoor your best solution? Before deciding, let’s see how they function and go through some of the Opendoor reviews.

What is Opendoor?

Set up in 2014, Opendoor aims to simplify the real estate experience. Currently, it is only present in 35 markets across the US. In all these markets, you can sell your property to the company. And, in half of them, customers can even buy a home with the firm.

Opendoor is a type of iBuyer i.e. Instant Buyer. Such companies leverage technology and website to buy homes for cash. They make quick offers, say within days of sellers reaching out to them. The offers, usually, are non-negotiable. However, expect additional fees if, during an inspection, some issue crops up with your home. 

Once the sellers get an offer, you will have a time of 5-7 days to accept and sign the agreement. 

Opendoor Reviews

It is time to look at some Opendoor reviews to help you decide if selling to Opendoor is a good choice or not. 

On Yelp, the company has 3 out of 5 stars. On Reviews.io, it has a rating of 4.25 out of 5, with 1,272 reviews.

Positive Opendoor reviews praise how hassle-free and quick it is to sell to the company. Some reviewers also stated that they found the company’s offers quite competitive. 

However, negative Opendoor reviews mention high estimates for repairs and low offers. 

Opendoor Fees

The company does not charge the typical realtor commission of 5% to 6%, but it does levy other fees. These are not charged upfront and will be subtracted from the purchase price of the home.

These include:

  • Service charge: 5%
  • Repairs: this will be on the basis of your house’s condition
  • Closing costs 1%, but this may vary based on the location

The closing costs and service charges are at par with what traditional real estate agents charge. But, the cost of repairs can take a chunk out of your profit. 

Opendoor claims that you will have to pay for the repairs in any case if you want to sell your home. However, if your house is in a hot market, you can find buyers who are ready to buy the property despite its state and pay for the repairs on their own. You can also find a contractor who can do this work for less than Opendoor’s estimate. 

Alternatives

If after going through everything you need to know about Opendoor, you feel that it is not the right fit for you, then there are some alternatives. 

Houzeo

Houzeo is a renowned flat-fee MLS provider. It charges a flat fee in exchange for a suite of its services. The company breaks down the home-selling process into a series of linear steps by leveraging technology to bring transparency to the process and automate documentation.

Its high-tech platform enables For Sale By Owner (FSBO) sellers to list their homes on the MLS. 

Houzeo reviews are mostly positive. Sellers across the country have rated it 4.9 out of 5 stars on popular review sites like Trustpilot and Google. One of the Houzeo reviews claims that there is comfort in the fact that when you call them up there is a live person picking up the call. 

Offerpad

This company is present in 14 US states. Its operations are similar to that of Opendoor. Sellers will have to complete a form on their site, including videos and pictures. Then they will receive an offer within 24 hours. 

Offerpad is fast-moving. Sellers get four days to decide if they want to accept the offer or not. If they do, the company will schedule an inspection within 15 days. If any issues come up with the house during the inspection, Offerpad will subtract the repair price from the original offer and sellers will sign a new contract.

The company charges a flat fee and service fees, which usually range from 6% to 10%, plus closing costs. 

Zillow Offers

Zillow is one of the USA’s biggest real estate websites. Zillow Offers is their iBuying unit, which currently operates in 25 markets. 

The company uses its Zestimate platform and the market trends to make a cash offer. Like most iBuyers, they will also perform an inspection once the seller accepts their offer. 

It charges any fees, all of which get subtracted from the offer. The service charge is between 1.5-9%, the selling cost is 6% and then there are closing costs.

Final Word

Opendoor offers a little less than what you would pocket selling your house the traditional way. This encompasses their expenses as they wait to resell the property. However, their offers are fair keeping in mind the services they offer. But, if you think that Opendoor is not the right choice for you then there are always some alternatives. 

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