Opendoor looks to entice sellers with bonus cash after resale
The iBuyer’s new Cash Plus program offers sellers an upfront payment and “potential future profits” if resale proceeds exceed acquisition and renovation costs.
Hot on the heels of a major stock price runup, Opendoor has announced a new program for home sellers.
On July 24, the leading iBuyer unveiled "Cash Plus," an option for sellers to get a cash offer with a fast payout from Opendoor, as well as additional funds after the company resells the property — if the proceeds exceed Opendoor's renovation costs and other resale expenses. The new program is launching in Dallas, Nashville and Raleigh, with plans to eventually roll out in all Opendoor markets.
Cash now, 'upside later': In its pitch for the program, Opendoor says Cash Plus offers sellers "the best of both worlds": a quick cash sale, and some assurance that they aren't leaving money on the table by going the iBuyer route.
"Unlike traditional home selling, where you might need to choose between convenience and getting the most from your home sale, Opendoor's Cash Plus gives you the chance for both," the company says.
Opendoor didn't provide any details about its typical sale profits after acquisition costs, renovation expenses and fees are deducted, or indicate how much of that profit would be returned to the seller. In noting that the program offers "potential future profits," it appears that in some cases, the seller will receive no additional proceeds.
What's in it for agents? Opendoor will connect interested sellers with a partner agent participating in its Key Connections program — an invite-only referral program the company introduced a month ago as part of its push to expand agent partnerships. The program also represents "a big opportunity for Opendoor to convert more customers," Nick Boniakowski, Opendoor's head of agent partnerships, told Real Estate News in June.
The exact fee structure and agent split for Key Connections was still being refined at that time — and that may still be the case with the introduction of Cash Plus. Real Estate News has reached out to Opendoor for further details on compensation for participating agents. The company already offers a 1% commission to agents outside the program who bring customers to Opendoor.
"Cash Plus provides sellers the certainty of our Cash Offer and the opportunity to gain more by using a market listing," Boniakowski said in the Cash Plus announcement. "Now, our local agent partners can offer even more home selling solutions, and make optionality one of their differentiators for clients. Cash Plus leverages what Opendoor and its trusted agent partners do best — and bridges the gap between cash offers and traditional sales."
Seeking the path to profitability: Opendoor's expansion of its agent partnership program and this new offering for home sellers are in line with ongoing efforts to boost revenue — and ultimately, profits. The company has remained optimistic despite posting significant losses over the past several years, reporting a slight uptick in revenue last quarter.