Opendoor Fees Breakdown: What You'll Actually Pay
Opendoor advertises a simple 5% service fee, but the true cost of selling to Opendoor is significantly higher. In this guide, we break down every fee and deduction so you can make an informed decision about whether Opendoor is right for you.
The 5% Service Fee
Opendoor's headline fee is 5% of the sale price. On a $400,000 home, that is $20,000. This replaces the traditional agent commission and covers Opendoor's marketing, transaction management, and profit margin.
Opendoor Service Fee
5%
of the sale price, replacing traditional agent commissions
Repair Deductions
This is where the real costs add up. Opendoor conducts a home inspection and deducts estimated repair costs from your offer. Common deductions include:
- Roof repairs: $3,000-$12,000
- HVAC issues: $2,000-$8,000
- Foundation concerns: $5,000-$15,000
- Cosmetic updates: $1,000-$5,000
The repair estimates are often higher than what you would pay a contractor directly, because Opendoor uses its own contractor network and builds in markup.
Below-Market Offer Prices
Studies consistently show that iBuyer offers come in 2-5% below fair market value. On a $400,000 home, that is an additional $8,000-$20,000 you leave on the table.
Standard Closing Costs
You still pay standard closing costs when selling to Opendoor, typically 1-2% of the sale price. This includes title insurance, escrow fees, and transfer taxes.
Total Cost Example
On a $400,000 home:
| Cost | Amount | |---|---| | Service fee (5%) | $20,000 | | Repair deductions | $5,000-$15,000 | | Below-market discount | $8,000-$20,000 | | Closing costs (1.5%) | $6,000 | | Total cost | $39,000-$61,000 | | Effective rate | 9.75-15.25% |
Compare that to a traditional agent at 6% commission plus 1.5% closing costs = $30,000 total on the same home, with the potential for a higher sale price.
When Opendoor Still Makes Sense
Despite the higher costs, Opendoor can be the right choice when speed and certainty matter more than maximizing proceeds. If you need to close in two weeks, avoid showings, or have a home that needs significant repairs, the convenience premium may be justified.
Compare Your Options
The best way to decide is to compare exact numbers. Our calculator shows you what you will net with Opendoor versus all five other selling methods, personalized to your home value, location, and situation.