Opendoor Reviews, Fees, Costs, Scams, and Complaints — Are They Legit?

Now that the real estate market has become increasingly online, many businesses have taken advantage of the trend to gain customers and increase their revenue. One of the most popular ones today is a company called Opendoor. This business serves as a place where people can sell their homes almost instantly and with values higher than the property’s current price. These benefits sound too good to be true, and they may be.

At Doug Hopkins, we want to discuss the company and determine if Opendoor fees, structure, and promise are legit and won’t lead to your loss. Keep reading to learn more.

What Is Opendoor?

Opendoor is an iBuyer—a company that purchases properties on the internet. You send them information about your property, and they will send an offer. The houses they bought will be on their website so aspiring buyers can look and start making offers.

This company has existed since 2014 and has experienced rapid growth thanks to its ability to help people quickly sell their properties. The company peaked at $15.6 billion in revenue in 2022, but its value has since dropped to $6.9 billion in 2023.

Opendoor Fees, Commissions, and Hidden Costs

Opendoor’s business model works like this.

1. The customer sends details about their address, and Opendoor sends an estimated offer.
2. The initial offer will be the first pass. Opendoor will give a final offer once they have a better idea of your home.
3. You will need to make a live video or walkthrough. Only then will Opendoor give the final offer.

The company will charge a 5% commission from the offer, which is similar to the charges of a real estate agent. You’ll also fund the repairs to improve the value of your property, which the company takes away as a percentage of the final sales price. Finally, there are closing costs that you’ll need to shoulder as well. This includes title insurance and appraisal fees.

Common Complaints and Reviews

Based on the reviews on sites like Trustpilot and Reddit, here are the most common complaints past clients have encountered.

• Lower Final Offers – Based on Real Estate Witch’s research, around 73% of people who used Opendoor were able to break even and even make a profit after selling the house. On the other hand, 27% of past clients sold homes for less, thanks to the repair fees and “changing market conditions.” It’s not surprising that low final offers are a common complaint among many users. They pay for all the repairs and other steps only to sell their properties at a loss.
• High Repair Costs – Some reviewers have mentioned exorbitant repair coverage demands, which drive up costs and lower the property owner’s final profits.
• No Advocate for Seller’s Needs – Another major complaint is how sellers sometimes feel like they are working on their own when dealing with Opendoor. While there are customer support representatives, people have to constantly make the follow-ups themselves. You won’t have a main contact who understands your unique needs as a customer and home seller. For first-time sellers, this issue might cause anxiety, given how selling a home is a major life event.

Common Opendoor Scams

Opendoor doesn’t do scams outright, as such actions could lead to criminal complaints. However, the issues sellers and buyers face may make the experience expensive and inconvenient, leading to complaints. Some buyers have mentioned how Opendoor’s repairs (which the seller funded) were insubstantial or substandard. Other buyers also mentioned long closing periods thanks to delayed certificates of repair.

Is Opendoor Legit?

Opendoor is a legitimate company offering legal services to home buyers and sellers. However, they are not perfect. You must be ready to face the issues we outlined above should you decide to work with them for a real estate sale.

There are alternatives that offer similar benefits, such as a speedy transaction without the added fees or hidden charges. One example is a cash buyer like us at Doug Hopkins.

Save Money and Avoid the Hassle by Selling for Cash in 7 Days to Doug Hopkins

We are the more trusted alternative compared to iBuyer companies like Opendoor. At Doug Hopkins, we follow a systematic procedure to help you get rid of your property as quickly as possible. You can close the sale in as quickly as seven days, allowing you to move on with your life with the equity you just received.

We accept homes in any condition. We will not reduce the prices just to cover repairs like Opendoor would. Instead, you get a cash offer that doesn’t have hidden charges or commission fees.

If your home has any of these issues, count on us to buy it without any hesitation.

• Damaged Properties: Whether the house has fire, water, or termite damage, we will still buy it.
• Dirty or Rundown Homes: Hoarder homes and houses filled with trash won’t be a problem with us.
• Homes Under Foreclosure: You can save your credit score by selling a property before it’s foreclosed.
• Inherited Properties: For people who inherited properties they’d rather not deal with, we can take it off your hands so you can move on with the equity.
• Foundation Issues: Cracked or damaged foundations won’t be a problem for our team.
• Vacant or Abandoned Properties: Get rid of a vacant or abandoned property by selling it to us. That way, you can access the trapped equity and invest it elsewhere.

Get an Idea of the Value with Our Free Cash Offer

You don’t have to deal with the uncertainty of working with iBuyers like Opendoor when you work with us. Let our team provide a competitive cash offer and help you close the sale as soon as possible. If you need to get an idea of your Arizona property’s value before you commit to the sale, send us your address, and we’ll get back to you with a cash offer!