In March, Opendoor founder and CEO Eric Wu announced an ambitious plan to double his company’s market availability from 22 markets to 42 markets by the end of 2021. Now, nearly seven months later, Opendoor has surpassed Wu’s master plan with market launches in Washington D.C., Columbus and Cleveland.
“At Opendoor, we’ve reached more than 100,000 transactions, making moving for our customers simple, certain, and fast,” Head of City Operations Rob Reiling said in a blog post on Tuesday. “We’re proud to bring the Opendoor experience to even more people as we launch in three new markets and double our market footprint in less than a year.”
Homesellers can request an all-cash offer from Opendoor after providing their address and completing a questionnaire. After accepting the offer, homesellers will complete a video walkthrough to identify any necessary repairs.
Sellers can choose their own closing date and can decide to reject the offer any time before closing. They also have the option of listing their home on the open market through Opendoor, which includes a $10,000 interest-free advance for repairs and a 5 percent flat fee.
Opendoor said each of the new markets has a robust economy, fast-growing population and booming real estate market ripe with iBuying opportunities.
“We’re likely to continue seeing a sellers’ market, which is expected to push home prices up, and Opendoor is ready to give competitive offers to sellers,” General Manager Patrick Halligan said of D.C. and Northern Virginia. “The local Opendoor team in D.C. is excited for the opportunity to simplify the real estate transaction process and meet the needs of our customers in the robust and thriving real estate market surrounding our Nation’s Capital.”
Meanwhile, Opendoor Senior General Manager Jim Lesinski said Cleveland and Columbus’ affordability is a sticking point for young professionals who are ready to step into homeownership without breaking their budgets.
“Homeownership in this dynamic market is within reach for first-time buyers, unlocking access to a culture that values equality, safety and inclusivity,” he said of Cleveland. “Opendoor is humbled to extend its services to another great city in the Midwest, making it easier than ever for the people of Cleveland to buy and sell a home.”
“Cleveland is one of the most affordable housing markets in the country with a median sale price under $200,000,” he added. “Investment is ongoing in lakefront developments including a reinvigorated Flats district, Edgewater park, and concert venues.”
Meanwhile, Lesinski said Columbus is one of the fastest-growing cities in the U.S., thanks to a vibrant art scene and a robust healthcare technology industry.
“Many come for the amenities and opportunities, but stay for the highly-rated school districts and family-friendly community,” he said. “It’s no surprise more people are moving to Columbus every year.”
In an emailed interview with Inman, Opendoor President Andrew Low Ah Kee said the company’s results this year are the result of “long-term investments paying off.”
“We’ve invested in data ingestion and modeling approaches that allow us to more efficiently build and calibrate our pricing algorithms in new markets,” he said. “We’ve invested in technology and tooling that allows many operations to run in a more scalable, centralized fashion.”
“And, perhaps most importantly, we’ve invested in our team and culture so that we have a talented group of people who are excited by the challenge of achieving the unprecedented,” he added.
Looking forward, Low Ah Kee said Opendoor is working to build on the momentum of the past year, which has included rapidly scaling its homebuying capabilities by adjusting its purchase requirements, rolling out a new preliminary offer feature, and a self-guided inspection walkthrough tool for sellers.
“Our mission is to empower everyone with the freedom to move, so, over time, we expect to be able to service consumers in every U.S. market,” he said. “We also know that two-thirds of sellers are also buying, so we continue to invest in stitching together an end-to-end consumer experience.”
“We’ve made tremendous progress so far with the integration of title and escrow, home financing and truly innovative home buying products that are helping consumers compete and win their dream home,” he added. “But there is much more we can do to modernize the industry even further.”