Choosing the Best iBuying App for Home Sales: Opendoor Knock or Zillow Offers

When it comes to selling your home quickly and conveniently, the iBuying market has two prominent contenders: Opendoor and Zillow Offers. But which one is the best? Let’s delve into the specifics and explore the key differences that might influence your decision.

The Key Players: Opendoor and Zillow Offers

Let's start with a brief overview of the two major players in the iBuying space.

Opendoor

Opendoor has a strong focus on marketing, which can seem overwhelming to homeowners who receive numerous offers through the mail. According to their marketing pitch, Opendoor offers a wide range of pricing, often with a 50k difference between their low and high offers. This extensive range is designed to attract more home sellers. However, this strategy means that not all neighborhoods are covered by Opendoor, and they might pause their buying activities in certain areas if they struggle to sell their existing inventory.

Zillow Offers

Zillow Offers, on the other hand, is a relatively new player in the iBuying market. Despite this, Zillow's financial backing and ability to fund themselves through a steady revenue stream without relying on venture capital puts them at a slight advantage. This allows Zillow to potentially offer better deals and grow faster than Opendoor. Additionally, Zillow's extensive database of housing information provides them with a unique advantage in making accurate offers for homes, which can lead to faster resale processes and higher margins.

Price and Expenses

One of the most significant factors in choosing between Opendoor and Zillow Offers is the cost associated with selling your home through these services. As of June 2019, Opendoor charges 8.1% of the sale price, while Zillow Offers charges 9.1%. For an expensive home, that 1% can be quite significant. However, it is worth noting that the difference in pricing only matters if your offers from both services are identical, which is not always the case.

Personal Experience: Opendoor and Zillow Offers

My personal experience serves as a valuable case study. When Opendoor targeted me with their marketing, I received a range of 50k between the low and high offers. Although the offer range was extensive, the unpleasant surprise came when Opendoor announced that they were no longer buying in my area, despite my interest. This continued for six months until the offer was finally withdrawn.

In contrast, Zillow Offers provided a more straightforward and timely offer that aligned closely with the current market price, though it was about 10k lower than the average sale price as determined by the size of the house and its Square Footage. Zillow also gave a friendly reminder that this was a site-unseen offer, with the possibility of the offer increasing once they visited the property. So far, my experience with Zillow Offers has been more positive.

Conclusion and Recommendation

Based on the information provided, the choice between Opendoor and Zillow Offers ultimately depends on your specific circumstances and priorities.

To make a well-informed decision, it’s crucial to consider the geographic availability, pricing, and your personal preferences regarding the iBuying process.