Kevin JohnsonOpendoor is an online real estate platform based in San Francisco, California. The company was founded in 2014 by serial entrepreneurs Keith Rabois, Eric Wu, Ian Wong, and JD Rose. Eric Wong also founded real estate startup Movity, which was later acquired by Trulia.
Opendoor utilizes technology to buy and sell homes online. In Dec 2020, the company went public after merging with the SPAC Social Capital Hedosophia Holdings II. The company was valued at $8 billion in 2021, but its valuation dropped to $1.11 billion as of Dec 2022. In Nov 2022, Opendoor laid off about 550 people, or 18% of its workforce. [1]
Opendoor uses proprietary algorithms to assess potential home purchases. Then, it makes instant cash offers on the best options, repairs the homes, and relists them on its mobile app. Opendoor offers home financing to buyers and operates in 44 markets in the US.
In Nov 2022, the company launched its new marketplace, Opendoor Exclusives, in Dallas-Fort Worth and Austin. Opendoor Exclusives allows users to buy and sell homes without the hassle of the traditional real estate model.
However, the company faces stiff competition from Redfin, Zillow, Offerpad, Orchard, Knock, Compass, and HomeLight. [2]
Here is an in-depth analysis of Opendoor’s top 10 competitors and alternatives:
1. Redfin
Year founded: 2004
Headquarter: Seattle, Washington
Redfin is a technology-powered real estate company that helps US consumers find houses for sale, rentals, lending, title insurance, and renovation services. It also operates the leading real estate brokerage site in the US.
In 2022, Redfin had over 5,000 employees and served more than 100 markets across the US and Canada.
Redfin and Opendoor compete in the US real estate market. Both companies use technology to simplify the process of buying and selling homes.
In 2019, Redfin launched its iBuyer solution RedfinNow which contributes to a quarter of Redfin’s revenue. Redfin offers expert insights and guidance through its research department, making it an excellent Opendoor competitor and alternative. [3]
2. Zillow
Year founded: 2006
Headquarter: Seattle, Washington
Zillow is a leading online real estate company with innovative solutions for home buyers and sellers. Its products include Zillow Offers, Zestimate, and Zillow 3D Home Tour. In Nov 2021, Zillow shut down its iBuyer division and laid off 25% of its workforce.
The main competitive advantage of Zillow is its end-to-end real estate solutions. Real estate agents can offer virtual home tours using Zillow 3D Home Tour.
In Aug 2022, the company launched Zillow 3D Home Tour nationwide. Home buyers can also use Zestimate to access home price data points and make an offer on their dream home via Zillow Offers. Zillow is an innovative Opendoor competitor and alternative. [4]
3. Offerpad
Year founded: 2015
Headquarter: Chandler, Arizona
Offerpad is a leading tech-enabled platform for residential real estate. The company turned profitable in 2021, becoming the first pure-play iBuyer to achieve this milestone.
In Sep 2021, Offerpad went public in a $650 million IPO after merging with SPAC Supernova Partners.
Offerpad and Opendoor offer iBuyer platforms to simplify home buying and selling, but Offerpad serves only 16 states versus 44 states for Opendoor. Offerpad provides cash offers, flexible listing options, mortgages, and buyer services.
In 2022, the company launched My Way, a custom renovation solution that allows homeowners to roll upgrade costs into their mortgages. Offerpad is one of the best iBuyer alternatives to Opendoor. [5]
4. Orchard
Year founded: 2017
Headquarter: New York City, New York
Formerly known as Perch, Orchard is an online real estate company with three core services. It offers Move First for home buyers and sellers, Buy with Orchard for purchasing properties, and List with Orchard for listing homes. In Nov 2022, Orchard laid off 180 employees in its second round of layoffs. [6]
Both Orchard and Opendoor are iBuyers operating in the US, but Orchard is available only in 13 US cities. In Sep 2021, Orchard raised $100 million in Series D, which increased its total funding to $250 million. Investors valued Orchard at $1 billion, catalyzing speculations of an IPO.
In 2022, the company expanded into four new markets and introduced an offer management tool and other services, making Orchard a fast-growing Opendoor competitor. [7]
5. Realtor.com
Year founded: 1995
Headquarter: Santa Clara, California
Realtor.com pioneered the digital real estate niche more than 25 years ago. It offers an open real estate marketplace, a listing website, and mobile apps. In 2021, Realtor.com was the second most visited real estate listing website in the US, with over 100 million monthly active users.
Realtor.com uses its website and mobile apps to provide consumers guidance and help home buyers find their dream homes. Its open real estate marketplace is built for everyone. Unlike Opendoor, Realtor.com offers expert insights and model-based forecasts based on data.
In Dec 2022, the company released its 2023 Top Housing Markets forecast that highlights markets with the highest growth in home sales and listing prices. Realtor.com is a formidable Opendoor competitor. [8]
6. Knock
Year founded: 2015
Headquarter: New York City, New York
Knock is a tech-powered real estate platform that operates in 75 markets across the US. The company combines mobile technology with innovative home financing solutions to help US consumers own homes. In 2022, Knock laid off 50% of its 250 employees.
Knock offers Home Swap and a cash-like home loan solution called Knock GO (Guaranteed Offer). Thousands of homeowners use the Knock Home Swap service to acquire homes and resell them for top dollar.
Since its founding, Knock has raised $900 million in debt and equity from investors and recruited 1.5 million NAR members to market its solutions to their clients. Knock is a worthy competitor for Opendoor. [9]
7. Compass
Year founded: 2012
Headquarter: New York City, New York
Compass is a leading real estate brokerage company. It works with over 26,000 agents in 69 markets across the US. In Jun 2022, Compass laid off 450 employees, about 10% of its workforce. The company cut more jobs in Jan 2023 to deal with the housing downturn in the US market. [10]
Like Opendoor, Compass uses technology to help real estate agents and brokers simplify the home sales process, but it offers only real estate brokerage services.
In 2021, Compass went public in a $450 million IPO. Since its founding, the company has raised $1.5 billion and has enough resources to compete and grab market share from Opendoor.
8. HomeLight
Year founded: 2012
Headquarter: Scottsdale, Arizona
HomeLight connects home buyers and sellers with qualified real estate agents. The company employs around 1,000 people and partners with 28,000 real estate agents.
In Jun 2022, HomeLight secured $60 million in capital and acquired lending startup Accept.inc. It has a valuation of $1.6 billion. [11]
Unlike Opendoor, HomeLight doesn’t purchase homes. The platform helps users buy or sell homes by matching home buyers and sellers with agents in their area.
In 2021, HomeLight facilitated over $1 billion in transactions and attracted more than 1.5 million monthly visitors. HomeLight is one of the top alternatives to Opendoor for real estate brokerage.
9. EasyKnock
Year founded: 2016
Headquarter: New York City, New York
EasyKnock is a real estate tech company specializing in sale-leaseback programs. It offers three services – MoveAbility, Sell & Stay, and ReLease. In Aug 2021, EasyKnock acquired FarmlandFinder to expand its service to farm owners.
EasyKnock collaborates with real estate agents, lenders, attorneys, and planners to improve the financial well-being of its clients. Users can rely on its sale-leaseback programs to access funds based on their property’s equity without moving.
EasyKnock allows sellers to stay as tenants after purchasing their house. Another benefit of using EasyKnock is its buy-back option and indefinite lease renewal. Easy Knock is a unique alternative to Opendoor. [12]
10. Sundae
Year founded: 2018
Headquarter: Santa Francisco, California
Sundae is a real estate platform that connects home sellers with vetted local investors. It helps homeowners get the most money for their homes by linking them to multiple investors.
As of Mar 2022, Sundae operated in California, Florida, Georgia, Texas, and specific cities like Charleston, Las Vegas, Salt Lake City, and Seattle.
Unlike Opendoor, Sundae doesn’t buy properties but only connects sellers with buyers. Home sellers can compare cash offers from multiple investors and choose the highest possible sale price. This approach gives homeowners leverage over home buyers. Sundae is one of the best Opendoor alternatives for home sellers. [13]
References & more information
- Azevedo, M. (2022, Nov 2). Opendoor lays off about 550 employees or 18% of its workforce. TechCrunch
- Azevedo, M. A. (2022, Dec 2). Opendoor CEO Eric Wu steps down, and CFO Carrie Wheeler steps in as the new chief executive. TechCrunch
- Redfin (2022, Dec 22). Redfin reports home sales slumped 35% in November, the biggest decline on record. Yahoo Finance
- Zillow (2022, Aug 8). Zillow’s AI-powered interactive home tours are now available nationwide. PRNewswire
- Offerpad (2022, Nov 2). Offerpad Reports Third Quarter 2022 Results. Business Wire
- Dalrymple, J. (2022, Nov 21). Proptech company, Orchard, lays off 180 employees. AIM Group
- RD Editor (2021, Sep 9). Orchard raises $100 million in Series D funding, says no timing set for potential IPO. Real Deal
- com (2022, Dec 7). Realtor.com Forecasts the 2023 Top Housing Markets. PRNewswire
- Knock (2022, Aug 2). Knock introduces features that make buying a new home more affordable. PRNewswire
- Reuters Staff (2023, Jan 5). Real estate broker Compass to cut more jobs to deal with housing downturn. Reuters
- Azevedo, M. (2022, Jun 16). Amid real estate tech industry layoffs, HomeLight raises $60M and acquires lending startup Accept.inc. TechCrunch
- CA Editor (2023, Jan 8). EasyKnock Review. Consumer Affairs
- Cohen, A. C. (2022). Sundae Reviews: What you need to know. UpNest
- Featured Image by Ronnie George
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