Opendoor vs a Local Cash Home Buyer: Which Pays More?

Opendoor and other “iBuyers” made instant cash offers mainstream: enter your address, get an offer online, pick a closing date. Local cash home buyers have done the same thing for decades, just face to face. If you want to sell fast, which one will leave you with more money? It depends on your house.

How Opendoor works

Opendoor buys homes that fit its criteria, typically newer houses in good condition in the markets it serves. You get a preliminary offer online, then an inspection, after which Opendoor deducts the cost of repairs it finds. It also charges a service fee, so compare the net amount on your final offer, not the headline price.

How a local cash buyer works

A local cash buyer, often an investor who renovates and resells or rents, looks at your house and makes an offer for it as-is. There is usually no separate service fee and no repair credit after the fact: the condition is already priced into the offer. Local buyers also take houses iBuyers turn down, such as older homes, houses that need major work, homes with tenants, inherited properties and houses in smaller towns.

Opendoor vs cash home buyer: side by side

• Best fit: Opendoor for newer, move-in-ready homes in its markets; a local cash buyer for houses that need work or fall outside those criteria.
• Fees: Opendoor charges a service fee and may deduct repair costs; most local cash buyers build everything into one offer.
• Speed: both can close in a few weeks or less; a local buyer may move faster when there are title issues to solve.
• Flexibility: local buyers can usually work around tenants, belongings left behind and unusual closing dates.

Which one pays more?

For a newer home in great shape, an iBuyer offer can be competitive. For a house that needs repairs, has a difficult situation or sits outside major metro areas, a local cash buyer is often the only realistic cash offer. The honest answer: get both if you can, and compare what you will actually receive at closing.

Questions to ask any cash buyer

• What will I receive at closing after all fees and costs?
• Can the price change after the inspection?
• Who handles the closing?
• Can I choose the closing date and stay a few days after closing if needed?

See also how to check a we buy houses company.

Compare with a local cash offer. Tell us about your house and a local cash buyer will make you a fair, no-obligation offer, usually within 24 hours. Get your free cash offer or call (727) 208-1229.