Opendoor’s buyer agent commission advantage: DelPrete

Opendoor's buyer agent commission advantage: DelPrete

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This put up has been republished with permission from Mike DelPrete.

Even in a cooling market, Opendoor’s purchaser agent commissions — the payment paid to a purchaser’s agent when a home is offered — stay considerably decrease than market averages.

Why it issues: Leveraging its powers of scale, Opendoor is pushing down purchaser agent commissions to cut back its bills — a development that began in early 2020.

  • Opendoor’s purchaser agent commissions vary from 0.5 % to 1 % decrease than the market common (usually, however not all the time, 3 %).
  • At scale, this might save the corporate over $50 million in commission fees annually.

Dig deeper: The information above, collected from, seems to be at over 9,000 listings in Opendoor’s 20 largest markets as of Sep. 2, 2022.

  • There have been additionally 226 listings with purchaser agent commissions above 3 % — usually on homes which might be struggling to promote.

The underside line: Opendoor is deftly turning the customer agent fee right into a aggressive benefit to optimize its enterprise mannequin.

Mike DelPrete is a strategic adviser and international professional in actual property tech, together with Zavvie, an iBuyer supply aggregator. Join with him on LinkedIn.

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