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This question is about Open Door.
How does Opendoor make money?
Opendoor makes money via service charges that the company collects, which are similar to real estate commissions. Opendoor describes their business model this way, but states that the difference between the company and a real estate agent benefiting their customer is:
Customers have the ability to move on their own timelines
Guarantees for any offers that are "all cash"
The ability to complete key paperwork online
The average service fee that Opendoor charges customers is 5% to 8%, but it can also be higher. The company claims none of its service fees go over 14%. These percentages are based on how long the company thinks it will take to sell a customer's home. These rates also help to cover specific costs, such as:
Taxes
Utilities
Maintenance
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