Why You Should Avoid iBuyers Like OpenDoor

In recent years, companies known as "iBuyers"—like OpenDoor—have promised homeowners an easy, no-hassle way to sell their homes. The pitch sounds appealing: skip showings, don’t worry about staging, and close quickly. But underneath that polished surface lies what I consider the dark side of real estate.

Let’s take OpenDoor as a prime example. While many of these instant home-buying companies have already folded, OpenDoor is still operating—and somehow still finding homeowners willing to hand over their largest asset without fully understanding the consequences.

What’s the Catch?
At first glance, it seems convenient. You get an offer from OpenDoor without having to list your home, and you avoid the traditional home-selling process. But here's what many sellers don’t realize: OpenDoor charges a variety of hidden fees. At one point, those fees added up to around 12%—far more than the traditional 5-6% real estate commission. After facing multiple lawsuits for misleading practices, they’ve since adjusted their fee structure, but the costs are still substantial and often unclear until it’s too late.

One of the most frustrating parts? Once OpenDoor buys your home, they make minimal updates—maybe a coat of white paint, a carpet cleaning, and basic cleanup—and then relist it for tens of thousands more. In one recent case, a client sold their home to OpenDoor for around $680,000. OpenDoor then cleaned it up, painted it, and turned around and listed it for $745,000. That’s a $65,000 difference, not even counting the fees they charged the seller and the minimal cost of the cosmetic updates.

And if you include those fees? The seller likely left at least $100,000 on the table.

But Was It Worth It?
All of that just to avoid a few days of showings. In today’s market, homes—when priced and presented correctly—are often selling in just a few days with multiple offers. That same seller could have potentially gotten far more by working with an experienced agent and listing it properly.

And it’s not just about money. By selling to a corporation like OpenDoor, many homeowners are also cutting out potential first-time homebuyers who have been saving for years to finally get into the market. These buyers are now competing with corporations that flip homes for profit with subpar quality. Many of these flips are known for being rushed, poorly done, and overpriced.

I’ve seen OpenDoor relist homes in my own neighborhood with zero meaningful improvements—outdated carpets, neglected backyards, cheap blinds still hanging—and price them significantly above their purchase price. These homes often sit on the market for months, and when buyers do show interest, they typically offer well below asking. That’s how little trust buyers have in the value OpenDoor provides.

The Bottom Line
OpenDoor—and companies like them—are not working in the best interest of the average seller. The only party walking away happy is the corporation. Sellers lose equity, buyers get overpriced flips, and real estate professionals—who work hard to protect their clients—are cut out of the process.

The takeaway? Be informed. Get multiple options before making a decision. If you’re not keen on listing publicly, there are other ways to sell your home. Agents like myself have access to investor networks, off-market opportunities, and private buyers who can offer you a better outcome—with less risk.

You don’t have to use me. But please, talk to a licensed agent before selling to an iBuyer. Stop handing over your wealth to corporations that don’t care about your community or your future.

Have questions about iBuyers, off-market options, or anything real estate-related? Reach out to us at The Hardy Group—we're here to give you the honest guidance you deserve.

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