3.2
Editor's Rating1.2
User Rating (28 Reviews)Opendoor is an iBuyer that purchases homes directly from sellers and also offers home buying services. In 2022, the Federal Trade Commission sued Opendoor, alleging they misled sellers by claiming they could pay market value for their homes.
Pros
Cons
Opendoor is one of the largest iBuyers in the U.S., founded in 2014 by Eric Wu and Keith Rabois in San Francisco. Opendoor can help you to request a no-obligation cash offer online instead of listing on the open market. You can also skip showings and choose a closing date that fits your schedule.
However, Opendoor has also faced legal scrutiny over their business practices. In 2022, the Federal Trade Commission (FTC) issued a consumer protection action against Opendoor Labs Inc. alleging that they misled sellers by claiming they could save more by selling to the company rather than on the open market. But in reality, the company allegedly offered less and charged more than they advertised.
Opendoor also faced a shareholder lawsuit over their AI-powered home pricing technology. Investors alleged that the company overstated the accuracy of their AI-powered pricing algorithm.
Additionally, many customer reviews of Opendoor across platforms highlight that the iBuyer extends lowball cash offers, around 70% to 80% of the market value. On top of that, they charge a service fee that might be 5% or more of the home sale price.
No, not for most home sellers. While Opendoor offers convenience, flexible closing dates, and a fully online selling process, their fees, pricing, and legal history raise concerns.
Here’s a breakdown of Opendoor’s drawbacks:
- Low Cash Offers: Like most iBuyers, Opendoor may offer less than your home’s fair market value. If maximizing your sale price is your priority, you could earn more by comparing multiple buyers.
- High Selling Costs: Opendoor used to charge a 5% service fee, but they do not disclose a fixed percentage anymore. However, as per seller reviews, their service fee might be around 5% or more. Moreover, you will also have to pay around 1% closing costs.
- Reduced Final Offer: Your final offer may be lower than the preliminary estimate after Opendoor completes their home assessment and adjusts for repairs or market conditions.
- Legal Scrutiny: Opendoor has faced regulatory and legal challenges. This includes an FTC settlement over misleading marketing claims and another securities class action by their shareholders alleging the company overstated their AI-powered pricing capabilities.
My Advice: Instead of accepting a single cash offer, consider using a cash buyer marketplace where multiple local and institutional buyers compete for your home. Comparing several offers gives you a better chance of securing the highest possible price rather than settling for the first offer.
Key Takeaways
- What is Opendoor? Opendoor is an iBuying platform that purchases homes directly from sellers, and also provides home-buying, financing and other services to buyers.
- Opendoor has a 1.5-star Google rating based on 66 reviews and a 1.4-star Yelp rating based on 50 reviews. Additionally, they have a 1.4-star BBB rating from 165 reviews and a 3.9-star Trustpilot rating from 810 reviews. However, they showcase strong ratings on Reviews.io with a 4.4-star rating from 3,449 reviews.
- The FTC alleged that Opendoor misled sellers with claims about receiving fair market value. Meanwhile, shareholders accused the company of overstating the accuracy of its AI-powered home pricing system in a securities class action lawsuit.
- Opendoor extends their service to 48 states. They do not cater to sellers in Alaska and Hawaii.
- Unlike Opendoor, Houzeo Cash Offers lets you compare multiple cash offers without hidden service fees. Meanwhile, Offerpad is more transparent about their service fees and closing costs. HomeVestors buys homes in almost any condition, while Opendoor has stricter eligibility requirements.
Is Opendoor Legit?
Yes, Opendoor is a legitimate real estate technology company founded in 2014 in San Francisco, California, by Eric Wu and Keith Rabois. In 2025, the company appointed Kaz Nejatian as CEO, while Keith Rabois returned as Chairman.
Opendoor is BBB accredited and has an A+ rating. Additionally, they operate through licensed real estate brokerages in the states where they provide brokerage services. As per their website, they have also helped over 300K homeowners sell their homes.
However, being legitimate does not mean they are free from controversy. Opendoor has faced legal scrutiny, including an FTC settlement over alleged misleading marketing claims and a securities class action lawsuit from investors.
What Legal Issues Has Opendoor Faced?
Opendoor has been the subject of both a federal consumer protection action and a securities class action lawsuit. These cases center on two different concerns: how Opendoor marketed their offers to home sellers, and what they disclosed to investors about their pricing algorithm.
FTC Action Over Misleading Seller Claims
The FTC alleged that Opendoor misled homeowners through deceptive marketing about home values and selling costs. Below are the key proceedings of the federal consumer protection action:
- Misleading Market Value Claims: The FTC alleged that Opendoor advertised that sellers could make more money through their cash offers than by selling traditionally. However, many homeowners actually received thousands of dollars less than they would have made with a traditional home sale.
- False Savings Claims: Opendoor claimed sellers would save thousands by avoiding traditional selling expenses. The FTC alleged these claims ignored service fees, repair costs deductions, and other closing costs that reduced sellers’ proceeds.
- $62 Million Settlement: Opendoor agreed to pay $62 million to settle the FTC’s allegations without admitting or denying wrongdoing. The FTC also ordered Opendoor to stop making misleading claims about home values, selling costs, and seller proceeds.
- Refunds to Homeowners: In 2024, the FTC distributed nearly $62 million in refunds to 54,689 eligible homeowners who sold their homes to Opendoor before the 2022 settlement.
Securities Class Action Over Pricing Algorithm Claims
Shareholders accused Opendoor of overstating the capabilities of its AI-powered home pricing technology. Here are the key allegations and the outcome of the case:
- Misleading AI-Pricing Claims: Shareholders alleged that Opendoor overstated the accuracy and reliability of their AI-powered pricing algorithm. They reportedly made the AI-system appear more effective than it actually was.
- False Statements to Investors: The complaint claimed Opendoor made materially false or misleading statements in connection with its 2020 de-SPAC merger and 2021 stock offering. This allegedly inflated the company’s stock price.
- Stock Price Decline: Investors alleged that Opendoor’s share price fell after corrective disclosures revealed the limitations of their pricing technology. It also disclosed their inability to adapt to rapidly changing market conditions.
- Settlement Approved: Opendoor denied all wrongdoing but agreed to settle the lawsuit with a $39 million agreement. The U.S. District Court for the District of Arizona approved the settlement in 2026, avoiding a trial.
What Do Customers Say About Opendoor?
Customers share mixed opinions about Opendoor. The iBuyer has a 1.5-star Google rating based on 66 reviews, a 1.4-star rating on Yelp from 50 reviews, and a 1.4-star BBB rating from 165 reviews.
However, they perform much better on Reviews.io, with a 4.4-star rating from 3,449 reviews. Opendoor also holds a 3.9-star Trustpilot rating based on 810 reviews.
| Platform | Rating | Review |
|---|---|---|
| BBB | 1.4-star | 165 |
| Yelp | 1.4-star | 50 |
| 1.5-star | 66 | |
| Trustpilot | 3.9-star | 835 |
| Reviews.io | 4.4-star | 3,452 |
We analyzed 4,000+ reviews of Opendoor and noticed that most positive feedback mentioned:
However, the negative reviews highlighted:
What Do Positive Opendoor Reviews Say?
✅ No home staging or showing
Several sellers praised Opendoor for eliminating many of the hassles of a traditional home sale. Reviewers said they skipped appraisals, repairs, staging, and multiple showings, and experienced a smooth closing process.
Sharing their experience, DC W. said:
Did not want the hassle of people coming into our home. With Opendoor just the inspector came. Much easier to buy another home when the details and your sales price of your existing home are complete. Extremely fair purchase price. No repairs or improvements needed on my end.Quite frankly I do not see why everyone does not sell their house this way.
Source: BBB
Here’s what Cait G. had to say:
From the initial consultation to closing day, Opendoor made selling our house a super smooth and stress-free process. Terrance was our Opendoor agent and he was incredibly helpful and very responsive. The communication/instructions were very clear. We are so happy we chose to forego the traditional putting our house on the market and dealing with the headache of staging it, having it immaculate with a family with small children, open houses, etc We got a fair offer and would recommend this company to anyone.
Source: Reviews.io
✅ Fast and convenient selling process
Many sellers appreciated Opendoor’s fast, fully online selling experience. Reviewers said they received a cash offer within 24 hours and sold their home in less than a month.
Cu T. shared their experience and said:
I sold my house on Opendoor. The whole process took less than a month. I got a video appointment with Opendoor a day after my tenant moved out. The video walkthrough was easy. 5 days later I got a better offer than the original. I sold the house in less than a month, as is, no cleaning was needed. The offer is way higher than the estimate on Zillow.
Source: Yelp
Praising the company, Rita De Cassia shared:
Open Door is an online company that buys your home without any stress. That means, you go on their website put in your address, they email you a time for a zoom video where you will be asked to show your home. In 24 hours you receive an offer with gross and net. Their net offer was higher than realtors were telling me I could net if I sold through an agent. There is no appraisal, no inspection and you choose the date of closing. I just want to share my experience. After I received the offer I read it in its entirety and asked questions I had, via phone or email. Open Door offered to pay 50% of closing costs and gave me a dedicated person to take care of me. Their commission is 5% but since their offer was higher my net was also in the high end. Within an hour of signing the contract , a escrow company contacted me and the process started. Today it was the closing date I chose. Everything is done through emails and your money is wired to your bank account.
Source: Yelp
✅ Good alternative to traditional sale
Several sellers said Opendoor was a great alternative to listing with a real estate agent. They appreciated selling their homes without repairs or contingencies. Reviewers said the quick, straightforward process helped them relocate, avoid financial stress, and close on their preferred timeline.
Here’s what Shelia Wingate had to say:
I was in a financial mess and it was getting worse everyday. I could not pay my mortgage I was barely keeping my utilities paid. I choose Opendoor thru seeing the many commercials that came on the TV. I needed a quick and easy sale and I got that with Opendoor I got more than enough to start over without all the debt hanging over me. I definitely recommend Opendoor for their quick and seamless process.
Source: Reviews.io
Mark Adams shared their experience and said:
Due to unforeseen circumstances, we needed to quickly sell our house and move closer to family, particularly my wife’s 92-year-old father. Our homeowners insurance required us to replace the roof before renewing the policy, with estimates nearing $20,000. Additionally, there were other repairs needed to prepare the house for showings. That’s when I discovered Opendoor, which buys houses as-is. After answering a few questions on their website, I received an estimated price range within minutes. I was pleasantly surprised by their offer, so I proceeded by uploading pictures of the house. A very pleasant gentleman then came to verify the condition, then they finalized the price which was satisfactory to me.
Source: Reviews.io
What Do Opendoor Complaints Say?
❌ Lowball offer
Several sellers criticized Opendoor for making offers well below their home’s market value. Reviewers said the company’s offers were significantly lower than those from local real estate agents or competing cash buyers. Some sellers also felt the deductions and final pricing did not accurately reflect their home’s condition.
Complaining about Opendoor, David Barton said:
I got multiple offers from diffrent home buying companies and opendoor was by far the lowest offer I recieved. Honestly the offer was pretty insulting and it took 5 days to get the offer
Source: Trustpilot
Here’s what Sandra G. had to say:
Our house was viewed by two realtors and they both gave us a fair market value to sell our home. We called Open Door to see what they had to say about our house. They came up with a bogus long list of things they would have to do, but the guy was only there for 5 minutes. They wanted to offer $50,000 less from the realtor said we could get. We went with one of the realtors and our house sold in 3 days for asking price. Open Door will rip you off.
Source: BBB
❌ Alleged bait-and-switch tactics
Several sellers accused Opendoor of using bait-and-switch pricing tactics. Reviewers said the initial estimate appeared competitive, but the final offer dropped significantly after the home assessment, with vague repair costs deductions and lower-priced comparable sales used to justify reduced offers.
Cody Weisbeck shared their experience and said:
I got an offer for my home in July that was 30k under what the home appraised for and then they wanted to take another 30k in commissions, closing costs and then repairs ( not stating what repairs were needed). The offer expired so I asked for another offer. I have done it a couple more times and now the offer is almost 80k under what the home still appraised for. This business is a scam to people. I get it trying to make some money but this is just down right theft.
Source: Google
Gina S., who faced a similar situation, stated:
Bait and switch!! Recently renovated home and they offered 50K below value and used the lowest priced homes in the area as a comparison. Literally a house across the street sold for 100k over what they offered and they went searching for a low priced property further away to justify their low-balled price. Run don’t walk. It was 35k below their original assessment.
Source: Yelp
❌ High fees and unexpected charges
Several sellers complained that Opendoor’s fees and deductions were higher than expected. Reviewers shared that the service fee, repair costs deductions, and closing costs reduced their final payout. Many sellers argued that the overall costs even exceeded those of selling through a traditional real estate agent.
Complaining about the company, Natalie said:
All cash offer was insulting as it was $30,000 less that the home sold for 3 years ago and the market value has only increased since then and the offer to help sell your home with an agent is just way to price gouge consumers by charging all of the same fees as a traditional agent plus a $5,000 open door service fee on top of the traditional charges. We sold to Opendoor in 2022 and the process was a great experience so we thought we would try it again. We had no idea the customer service had changed so drastically and that the offers given now would be so insulting and just a way for the company to try and grab property at lower than market prices for people who are desperate to sell and have few other options. Why would anyone use open door as an agent just to pay extra fees for the privilege of using open door to sell?
Source: Reviews.io
Here’s what John A. had to say:
The ads are misleading about the process and fees. 1. It has you fill out a questionnaire about your home, gives an estimate, then asks you to set up a call. On the call, they inform you that estimate is basically meaningless. 2. The ad says sell with no realtor fees…but your service fee is 5% which is about the same as I’d pay realtors, so that math doesn’t help. 3. Ads also say, ‘sell without repairs…’ but the cash offer came back with about $36,000 in ‘condition adjustments’…I’m assuming for cosmetic repairs and cleaning, etc. Why not just offer $36,000 less then. And there’s no way our house needs that much….a little touch up paint and it’s move-in ready?? 4. The offer was over $100,000 off from the original ‘meaningless’ estimate I received and the reason I was given was it was difficult to find comps in my area…1. literally 200 feet from my house is another custom built home that sold in November … 2. That was the excuse for the cash offer being low, but the offer for OpenDoor to list our house was $396,000? How do you expect to sell it for $396,000 if you can’t find comps to offer more than $278,000 (minus $36K in condition adjustments)? Makes no sense.
Source: Yelp
❌ Subpar repair work on flipped homes
Some buyers criticized the quality of renovations in Opendoor-owned homes. Reviewers alleged that cosmetic updates concealed underlying issues, with complaints about poor workmanship, low-quality materials, and repairs that failed to address existing problems.
Larry RC. shared their experience and said:
I recently bought a house from Opendoor their way of presenting the home to the puiblic is by putting lipstick on a Pig – it’s still a Pig. The presentation was okay until I completed the purchase and that’s when the truth came out. Opendoor uses the worst and cheapest contractors it could find, they masked and hid every bad thing instead of doing the repairs, the covered up the worst of the worst only to be found while doing any changes to make the house my home. Shoddy workmanship (flooring, paint, electrical, etc.), shoddy grade of materials used – absolutely the worst hap hazard redo of any property I looked at. wait til you see what they hid behind a mirror they hung in the bathroom…..this was typical throughout the house, believe me, I couldn’t believe the CRAP I found in this house – Opendoor needs to be banned from home sales practices like this.
Source: Yelp
Ana B., who faced a similar situation, shared:
BEWARE BUYERS! We purchased a home through OpenDoor in 2019. We loved the location and thought we could make the home what we wanted. We had a very extensive and thorough inspection, but just didnt pick up on the shoddy work. Five years later, and all the upgrades that OpenDoor did are falling apart. The carpet is so far below builder grade and paper thin that weve caught our toes many times on tack strips (and now have hammered down all the tack strips to keep our kids from ripping up their feet). They did a DIY paint job on the bathtub/shower that has completely peeled off. The new floors in the kitchen have warped, cupped and chipped extensively. They picked the lowest quality paint and just slapped it on. There were basement water issues covered up by paint and disclosure of a sewer back up (which was a lie; there was longstanding water problems). We know that sellers will put up a new coat of paint to make a house sellable, but this is beyond shoddy work. I would never again entertain the idea of buying a home from OpenDoor, even if it were my dream home. And I would never sell my home to OpenDoor, out of concern for a future owner.
Source: BBB
Opendoor Pros and Cons
Opendoor offers a fast and convenient way to sell your home, but the experience may vary depending on your property and market. Here’s a quick look at their advantages and drawbacks to help you decide if they are the right fit for your sale.
✅ Pros
- Flexible Closing Timeline: Opendoor allows you to select a closing date that aligns with your timeline. For example, Dave Kemp chose to close their home in 30-40 days and described the process as straightforward.
- Fast Selling Process: You can expect a quick transaction when selling with Opendoor, according to some customer reviews. Seller John Lindsay said the process was easy to complete, and the sale proceeds were deposited into their account promptly.
- No Staging or Repairs Required: You can sell your home as-is without worrying about staging, cleaning, or making repairs before listing. This can also help you avoid repair costs.
❌ Cons
- Lowball Cash Offers: You may receive a cash offer that is significantly below your home’s market value. For example, Lokesh V. claimed Opendoor’s offer was 20% to 30% below market rates, making it less competitive than what they expected from the local market.
- High Service Fee: Opendoor does not publicly disclose a fixed service fee. However, they historically charged a 5% service fee, and many recent reviews still reference fees around this amount. You may also pay repair costs and about 1% in closing costs, reducing your final proceeds.
- Strict Eligibility Requirements: You can only sell to Opendoor if your home meets their eligibility criteria. Factors such as your home’s location, age, condition, value, and property type may determine whether Opendoor makes you an offer.
- Final Offer Lower Than Initial Estimate: You may receive a final offer that is substantially lower than the preliminary estimate. For example, Kavenough Carney said Opendoor’s initial offer of $335,000 dropped to $262,000 after the home assessment, despite the property being appraised at $400,000.
- Legal Scrutiny: Opendoor has faced regulatory and legal scrutiny over their business practices. The company has been accused of misleading pricing claims, deceptive advertising, and making false or misleading statements to investors, resulting in lawsuits and regulatory actions.
What Types of Homes Does Opendoor Buy?
Opendoor has strict eligibility criteria for the homes they purchase. If your property doesn’t meet them, the company will not extend an offer.
To qualify for an Opendoor offer, your property needs to fulfill these conditions:
| Parameters | Criteria |
|---|---|
| Ownership and Occupancy | Clear and marketable title. The property must be occupied by the owner. Furthermore, it must also be vacant at the time of closing. |
| Property Type | Single-family homes, townhomes, duplexes, and condos in certain areas. |
| Valuation | $100K to $600K (varies by area) |
| Lot Size | Up to 2 acres (varies by area) |
| Year Built | After 1930 |
As per their website, Opendoor does not buy prefabricated houses and mobile homes. Additionally, you won’t be able to sell your home to Opendoor if it has foundational issues or unpermitted additions.
- Homeowners who need to close fast due to relocation, job changes, or financial pressure.
- Those who want to avoid agents, showings, and lengthy negotiations.
- Owners who prefer certainty and immediate cash rather than waiting for traditional buyers.
- Sellers who want to get full market price and are willing to wait for traditional buyers.
- Homeowners who prefer negotiating with buyers to improve their offers.
- Those with homes in excellent condition that could attract higher offers through listing.
- Sellers who want hands-on broker support while selling their home.
Other Opendoor Services
Opendoor offers more than instant cash offers. You can also use their platform to buy a home, finance your purchase, work with an agent, and more.
Cash Now, More Later
With Cash Now, More Later, you receive an upfront cash payment when you sell to Opendoor. If Opendoor later resells your home for a higher price, you may receive additional proceeds after eligible expenses are deducted.
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🚨Important: Opendoor charges a service fee for this program, but the amount depends on how much upfront cash you want. If you want a significant amount of cash upfront then you will have to pay a higher service fee.
Home Buying Platform
You can browse and purchase homes listed by Opendoor through their online marketplace. However, some buyers have reported concerns about the quality of renovations on certain Opendoor-owned properties.
Opendoor Checkout
Opendoor Checkout lets you buy an Opendoor-owned home without using a real estate agent. Available in 23 states, this program provides a self-service buying experience that guides you from making an offer to closing while helping you save on buyer agent commissions.
Opendoor Sell to Buy Your Next Home
Sell to Buy helps you unlock your home equity with an all-cash offer, giving you funds to purchase your next home before selling your current one. You can also align the closing dates of both transactions anywhere from 14 days to 4 months, helping you avoid double moves and carrying two mortgages.
Opendoor Home Loans
Opendoor Home Loans is the company’s in-house mortgage service that aims to simplify the financing process for homebuyers. As per their website, it offers a faster, more transparent loan experience designed to reduce closing times and streamline financing through a single platform.
Opendoor Title
Opendoor Title provides title insurance and escrow services to help complete your home purchase or sale. These services are offered through the company’s title operations business, OS National.
How Does Opendoor Work?
Selling your home to Opendoor is a fully online process. From requesting a cash offer to choosing your closing date, here’s what you can expect at each step.
- Request an Offer: Provide important details about your home on opendoor.com. After this, you will receive a free estimate of your home’s value.
- Schedule a Virtual Home Tour: If you accept their offer, Opendoor will arrange a virtual home tour. You can choose a video call or submit property photos and videos for verification.
- Complete the Home Inspection: Opendoor sends a home inspector to examine your property. The home inspection covers the foundation, roof, plumbing, electrical system, etc.
- Receive the Final Cash Offer: Opendoor makes a final offer on your house within a few days of the assessment. This includes a service fee, repair expenses, and closing cost.
- Close on the Sale: If you accept Opendoor’s cash offer, you can select a closing date that extends from 14 to 60 days.
How Many Markets Does Opendoor Serve?
Opendoor covers 48 states across the U.S., including key markets like Florida, California, Texas, Arizona, and Colorado, among others. Their coverage does not extend to Alaska and Hawaii.
Does Opendoor Make a Good Offer?
Opendoor reviews suggest that sellers usually get 70%-80% of their property’s Fair Market Value. However, if you have a turnkey home, you may receive a higher offer.
Furthermore, with the added service fee, repair costs, and closing costs, you may end up leaving a lot of cash on the table.
Opendoor Competitors
The best Opendoor competitors are Houzeo Cash Offers, Offerpad, and HomeVestors. We compared these cash home-buying options based on profit, pricing transparency, and eligibility criteria for homes. Here’s how they compare with Opendoor.
We conducted a comparative analysis to identify Opendoor’s top competitors based on key factors such as profit, pricing transparency, and eligibility criteria. We aim to provide a fair and data-driven comparison.
- Market Comparison: We evaluated different types of home-selling solutions, their services and company policies.
- Pricing Structure Assessment: We evaluated the true value of each platform by breaking down upfront flat fees, potential hidden costs, and percentage-based commission structures.
- Consumer Feedback Review: We analyzed seller reviews from Yelp, BBB, Trustpilot, and Google to understand satisfaction levels and common concerns across platforms.
- Support and Assistance Evaluation: The level of transaction support was evaluated by measuring the availability of dedicated closing coordinators, comparative market analyses, and advanced tools.
- Selection Criteria: We chose the competitors based on how they differ from Opendoor’s model to ensure a balanced mix of alternatives.
1. Opendoor vs. Houzeo Cash Offers
Opendoor gives you a direct cash offer for your home, but your final proceeds may be reduced by service fees, repair expense deductions, and closing costs. The iBuyer does not publicly disclose a fixed service fee, however many sellers report that the combined deductions can significantly lower their final payout. Additionally, since you receive only one offer, you have little leverage to negotiate or compare pricing.
Houzeo Cash Offers takes a more transparent approach. There are no hidden service fees, and you receive multiple cash offers from vetted local and national buyers competing for your home. This lets you compare offers side by side and choose the one that delivers the best value.
| Parameters | Opendoor | Houzeo Cash Offers |
|---|---|---|
| Sale Price | 70% to 80% of FMV | Up to 100% of FMV |
| Customer Rating | 4.4 stars (4,568 reviews) | 4.9 stars (11,300+ reviews) |
| Closing Timeline | 21-60 days | 7 days |
| Coverage | 48 states (Exceptions: Alaska and Hawaii) | Nationwide |
| Service Fee | 5% or more (No fixed amount) | $0 |
| Sell As-Is | ❌ | ✅ |
| Multiple Offers | ❌ | ✅ |
| Scope for Negotiation | ❌ | ✅ |
| Highest and Best Offer | ❌ | ✅ |
2. Opendoor vs. Offerpad
Both Opendoor and Offerpad charge sellers service fees and closing costs, but they differ in how transparent they are about those charges. Opendoor used to charge a 5% service fee, but they no longer publicly discloses a fixed price. However, many recent seller reviews mention fees more than 5%, in addition to repair costs deductions and closing costs. Combined with complaints about lowball offers, these costs can significantly reduce your final proceeds.
Offerpad is more upfront about their pricing. The company clearly states on their website that sellers typically pay a 5% service fee and about 1% in closing costs. While these fees are still relatively high and comparable to the cost of a traditional home sale, you know what to expect before requesting an offer. This transparency makes it easier to estimate your net proceeds and compare Offerpad’s offer with other selling options.
3. Opendoor vs. HomeVestors
Opendoor only buys homes that meet their strict eligibility requirements, so factors such as your home’s location, age, condition, value, and property type may determine whether you receive an offer. Even if your home qualifies, your final proceeds may be reduced by service fees, repair expense deductions, and closing costs.
HomeVestors buys homes as-is in almost any condition, including properties that need significant repairs or updates. They also do not charge service fees or commissions, making their pricing more straightforward. However, as a cash home buyer, HomeVestors typically offers 50% to 70% of your home’s fair market value.
Is Opendoor Worth It?
Yes, Opendoor is worth it only if you are fine with high service fee and price deductions on top of a lowball cash offer.
The company can sell your home without showings and with a flexible closing date. However, you should be comfortable with the possibility of undisclosed service fees, repair costs deductions, and closing costs, which can significantly reduce your final proceeds. Opendoor has also faced FTC action alleging that they misled sellers by claiming that they could offer market value for homes.
If you want to maximize your cash offer while keeping fees transparent, consider Houzeo Cash Offers. Instead of relying on a single buyer, you can receive competitive offers from a nationwide network of vetted cash buyers, compare them side by side, and choose the best one. With no hidden service fees, nationwide availability, and closings in as little as 7 days, Houzeo Cash Offers gives you greater transparency, more negotiating power, and a better chance of securing top dollar for your home.
We implemented a rigorous multi-platform evaluation framework to provide an objective, fact-based analysis of Opendoor’s services. This review avoids single-source bias by analyzing verified customer touchpoints across primary consumer intelligence networks.
- Cross-Platform Aggregation: We gathered raw review data across Google, Trustpilot, Yelp, and BBB to eliminate platform bias. Each platform weights sentiment differently, so aggregating across all three corrects for the blind spots any single source would introduce.
- Verified Customer Sampling: Our analysis evaluated 4000+ specific consumer touchpoints to ensure statistical relevance, filtering out unverifiable or duplicate accounts to protect data integrity.
- Temporal Weighting: Reviews were time-stamped and weighted so recent feedback (last 6–12 months) carries more influence than older reviews, ensuring the analysis reflects current service levels rather than historical performance.
- Customer Service Analysis: We scrutinized customer interactions with customer service, identifying communication gaps.
- Alternative Cross-Referencing: We compared Opendoor directly with competitors to baseline their market value.
- Category Tagging: Each touchpoint was coded against recurring themes like pricing transparency, agent responsiveness, closing timeline, etc., so the review speaks about specific, actionable dimensions of service rather than a single blended star rating.
Resend Code
Reviews
(28 Reviews)
Michael Jak
Verified Reviewer
Sergio Ortiz
Verified Reviewer
20th Jan 2026
Tough company to work with, and we haven’t even made it past the initial conversations. No communication. Website and app are useless to sellers. My dedicated support agent is never available. He has yet to respond to a single text, email, or phone call. I’d avoid Opendoor. Save yourself the headache and try Orchard. I can at least say that they communicated well.
Paula Hopkins
Verified Reviewer
8th Jul 2025
This company is a scam. Trying to offer me 120,000 to 150.000 to buy my home I just got it appraised at 168,000. And on top of the low offer they want 5% more for buying. Kick rocks scammers!
Darius Canty
Verified Reviewer
5th Apr 2025
Walk through with anyone who is sent to your home. Remember it may be easier to own what you have than it is buy what you sale.
JustinTyme
Verified Reviewer
1st Apr 2025
I just kicked OD down the road. I called and received an “initial offer” of $350 to $400k on line. Several mirror images of my house, upgraded and one with a two car garage added, sold for approx. $550k recently. I am aware of cost of renovation and calculations for profit. I was completely truthful. I let their assessor into my house. I would have been willing to accept the low end of their “initial offer” which would have allowed them to make repairs, 5.2% ‘service’ fee and plenty of room for a profit. OD came back with an offer $100k less than the “initial” on line offer. SORRY – but my house doesn’t need $250k in repairs to make it sellable for a profit.
Evie b
Verified Reviewer
1st Mar 2025
Would not use opendoor unless absoulutely neccessary. Opendoor offered $280k for my house, i turned it down. Did nothing else to my house and listed with realtor. 45 days later. House is closed and sold. $325k take home after all cost.would have lost $45k if i accepted oppendoors offer. Not a good deal
Not always the best option
Verified Reviewer
8th Aug 2024
My whole experience with opendoor was pretty crappy, but we found a house we wanted and they were able to help make it happen immediately vs waiting for someone to want the house with a traditional sale which is the only reason we entertained the idea. We had our house already listed on the MLS. They base their offer price solely on the asking price currently listed. So when we lowered our price on the traditional market, guess what they lowered their offer by a lot! To be expected I suppose, but they won’t admit their offer is literally only based off the listed price and nothing else is taken into consideration. Mind you, my house was worth about $370k+ according to comps, we started competitively at $365k. Market was slow so we lowered it a little once or twice cause we started to get impatient, although we didn’t have a specific house we were interested in yet we had plans for the money we’d make off the sale of our house. So, no matter what condition your house is in, they’ll take about $20k+ for “repairs” from what I’ve read from others. Mine was $26.5k. My house did need a new roof (although it was in excellent condition it was on the older side in age), landscaping, and flooring in the rooms. But they won’t tell you what the repair money will be used for, this is just their sweet spot repair number that I’ve seen multiple people quote so it doesn’t matter what repairs your house needs. So my offer for $287k went down to about $260k. Mind you it will definitely show my house sold for $287k but it sure didn’t! Then they estimate what closing costs will be and say you’re realtor doesn’t get a commission if it’s listed on MLS already or they don’t personally request an offer through the agent portal vs the seller asking for their own offer. So they estimate after closing costs and the 5% opendoor fee I’ll get $242k. Sounds good. Payoff my remaining mortgage I’d be still making a good amount for my next down payment and some leftovers. What they conveniently leave out is the EXTRA due at closing from the seller. Your half of the property taxes ($1200), the commission due to the realtors ($7700), transaction fee to realtor ($395), and my general closing costs with the title fees and everything were about $700 more than their “estimate”. So alas, I ended up with over $10k LESS than their estimated proceeds they quoted me. Mind you they said my realtor wasn’t eligible for a commission, FROM THEM lol. So those costs weren’t deducted but I don’t mind paying my realtor of course she’s amazing. I guess it’s my fault for not taking the commission I’d pay into account I suppose, but when I get an estimate I’m expecting at least somewhat close to that number and that’s what they bank on. So move on to further in the closing process, they say we offer FREE late checkout so you can stay in the house for an extra 3 days then it’s $215 a day to rent it back from them. So we thought that’s great, that’ll make it easier to have 3 day leeway to move our stuff out and get cleaned up. Well their late checkout addendum says they will withhold $4000 from your proceeds in an escrow account and that they can basically take it without informing you of the reason why if they find additional damage or garbage left behind and the whole amount will be released back to them. Sounds like an easy way to just steal another 4k for “damage” on top of the 26k they already took. Since I don’t know what “damage” they were repairing for the 26k they could easily come in and say they needed to paint or repair this door and this wall let me take this extra 4k because I can (cue evil laugh). I called to ask about the way they sneakily worded that and was told they are just looking for any extra major damage or trash left behind that they have to get someone out there to remove. They said I’d be told if there was stuff left behind and they’d charge per item not take the whole 4k and give me the option to remove said item so I chose to trust that and the phone call recording I had of my dedicated person stating that. When it came to late checkout it was easy I just uploaded pictures of areas to show it was empty and not full of trash and within 30 minutes got the email releasing my deposit so that was probably the easiest part of the whole process. All in all I pissed off my realtor heavily by deciding to do this and accept an offer that ended up $100k+ less than we could’ve gotten but opendoor allowed us to get the house we wanted since it was quick and easy to get a contract on our house so we would be under contract when we made an offer on the house we wanted. If we hadn’t found a house we wanted we would not have gone this way with all these fees and unexpected ways they lowered the amount we end up with. But it got the job done.
Charity Early
Verified Reviewer
12th Jul 2024
Used them a few years ago and I recommended them to everyone. Even had a few coworker use them in the past. Now they have shady tactics and I am going to make sure as many people as possible know they have lost there ethics and do bad business. I would with the public and I plan on telling as many people as I can to get the truth out. My company is nation wide and I have friends all across the country that will help spread the word. DONT USE them. I should have done better research this time .uch better alternatives to them. Learn from my mistake abd go some where else!
JC
Verified Reviewer
3rd Jul 2024
lowball offer. not worth it.
Matthew
Verified Reviewer
26th Jun 2024
Wasted my time in more ways than one. Never received a Zoom invite by text for the first call, but I did take time off from work. Agent called my phone but as I went to answer, the call was cut off. Instead of calling me right back, she waited 30 minutes, by then I had to return to work. Had to reschedule, and the second time I spent 45 minutes on the call with the agent, only to receive an impersonal text the following day telling me that my property sits in a neighborhood with “stabilized foundations” and no offer would be given. That couldn’t have been determined in the two weeks leading up to our zoom call? Horrible experience. Those guys suck.
Micaela
Verified Reviewer
16th Jun 2024
Opendoor will hold a property empty for 90 days then upon finding a buyer will claim they have no knowledge of the issues with the house “as it has been unoccupied.” Trying to get in to see a home is almost impossible. Their QR codes and entry codes don’t work and there’s no one available by phone or text. You can be standing in the driveway of the listed home right next to the For Sale sign and their search option will tell you there aren’t any homes in the area.
Chris
Verified Reviewer
21st May 2024
I would just label it a bait and switch situation all the way through. Gave me a great preliminary offer and I even asked the rep who I was working for if this was a realistic number. They confidently told me that it’s “very rare” to see their final offer be below the lowest number in the “range” they give you. In the end, the number came in 30% less than my preliminary offer. Complete waste of time. Just list it with an agent and save yourself from this experience.
Beware! These people are a scam
Verified Reviewer
20th Mar 2024
These people are a scam. They come up what sounds like a marginally reasonable offer, then they add in all of these extra charges, repairs, say that they will reimburse and then they don’t. They are horrible. All of the reviews on their website are fake, posted by employees or friends, etc. If you don’t believe me, go look on the Better Business Bureau website, the most reliable website, and see. Lots and lots of people have had the same experience. And many of their former customers refer to them as “criminal”.
M Lam
Verified Reviewer
16th Mar 2024
Beware of their deceptive practice. Their preliminary offer was very attractive but then after we opened our house to show them they told us they cannot give us an offer with a reason that can be determined ahead of our showing (nothing to do with our house). It seems that they just want to come to our house to gather information for their database. Fortunately, we were alerted and refused to do the video recording(a staff came to take pictures with our guidance instead) as we are still living there. We feel lucky when compared with the suffering of so many reviewers who were actually given the final offer by Opendoor.
Pete
Verified Reviewer
27th Nov 2023
The week of Thanksgiving 2023 I corresponded with Opendoor for a home in JAX, FL. I initially submitted my offer through email. Then the Opendoor selling agent agreed in writing to the offer and stated “please resubmit it so I can have it reviewed and signed”. The Opendoor partner lender Lower loan officer (VP) also reached out to Opendoor. Then Opendoor had an issue in their systems and I had to call the agent to resolve this. Almost a week later this is still in pending state in their system. I was then informed that I can only make an offer for $493K instead of the $450 that was agreed upon. I then tried again with a regular real estate buying agent after I was unable to reach the Opendoor partner agents that did not respond to email and were unreachable by phone. Opendoor must be the worst run start-up still active in 2023. Unbelievable.
Unethical work dealings
Verified Reviewer
2nd Nov 2023
This company is the worst. They lowball offer you. The offered my clients an amount $40k below asking price. They told us we can sign up and just cancel anytime the due diligence period. We told them that we still want a higher payout on the home. So we relisted it for a lower amount but higher than what they were willing to pay. After 2 days of relisting it on a lower amount, we decided to accept their offer. They didn’t advise us not to change the price etc. 2 days after we accepted, they withdrew due to the changed price. What an awful company.
Sterling Leavitt
Verified Reviewer
24th Oct 2023
While the concept is sound, they seem to be all over the place in my local market. I have not yet found a seller that was greatly joyful after their sale. Buyers tend to have low opinions of working with the purchase of an Opendoor property. As an agent, I do struggle often with being able to work with a person in a timely fashion and when we need to have a conversation about negotiations, this a an often painful process. I have attempted to work 8 clients through the process, none wanted to continue after the first failed contact
Jeneane H.
Verified Reviewer
21st Oct 2023
This company wasted my time by giving me an initial offer, setting up a virtual walkthrough of my home, and then informing me a week later that they revoked the offer due to low resale numbers in my area. Not impressed!
David Maxwell West
Verified Reviewer
20th Oct 2023
I am buying a new home with Lennar and was referred to Open Door. Since then, my Lennar agent will not refer his customers to Open Door, and this has nothing to do with me. I was offered 630K for my home. I had an appraisal, and it was a little low but acceptable. The home that we wanted in a corner lot took almost two years to become available. Open door let us know that they could only hold our offer for 9 months. When we had a closing date for our home, we listed our home for a short time with a real estate agent to see if we could sell it at 620K. Things were a little slow, so we went back to Open Door for another offer. They came out and offered us 530K for our home. When I asked for the reason, they said the market had changed. I am a home inspector, and it is true that it has slowed down a little but not that much. When I called to ask I had to make over seven phone calls to get an agent who would talk with me. They refused to review the offer to see if it made sense. I will never work with this company again.
Karl Turner
Verified Reviewer
18th Oct 2023
Did not like the experience at all.
Karl Turner
Verified Reviewer
18th Oct 2023
Opendoor was not a pleasant experience but it may work for you.
Tod G. Franklin, Real Estate Broker Dallas Texas
Verified Reviewer
13th Oct 2023
I call them Brokendoor because almost every time I show one of their homes the foundation rides like a roller coaster. Their business model attracts desperate sellers with some condition causing the home to not be retail saleable in MLS. Brokendoor gets these homes at a discount and does little to get them market ready. Its a perfume on a pig approach to flipping. Buyer beware I tell my customers when it comes to Brokendoor homes. They are more likely to paint a home than fix a foundation is what I usually see.
Mike Bennett
Verified Reviewer
13th Oct 2023
Terrible customer service. Paid 500.00 3 days ago and it’s still not listed. No one will answer a phone call
Zorica
Verified Reviewer
13th Oct 2023
They gave my contact info to local real estate agency and their fee is 6% of sold price.
Jeff – Realtor
Verified Reviewer
13th Oct 2023
Opendoor has a nifty concept but is atrocious to deal with as a buyers agent. You can’t get a hold of anyone useful or knowledgeable about the local area. The process is stressful and properties overpriced.
Sharon
Verified Reviewer
13th Oct 2023
As a real estate agent, I don’t like Opendoor. The listing agent is in another city and always difficult to reach. The offer process is ridiculous because you can’t reach anyone and/or know if the property is already under contract when you may be writing one. And in our market they ALWAYS replace the carpet with ugly brown carpet.
Carlen Hultgren
Verified Reviewer
13th Oct 2023
only twice have I looked at and tried to get info from OpenDoor. I am still waiting for those call backs….
John
Verified Reviewer
All sounded good with initial offer. Then after they came to look at house. Lowered offer by 30,000.00 and said it needed over 30,000.00 work. House has new kitchen, new floors, new paint in and out and brand new A/C. They prey on people that are in a bad way (desperate). So wrong. Don’t know how they sleep at night
24th Jan 2026
Highly recommended for anyone listing their house!