This publish has been republished with permission from Mike DelPrete.
Even in a cooling market, Opendoor’s purchaser agent commissions — the price 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 pattern that started in early 2020.
- Opendoor’s purchaser agent commissions vary from 0.5 p.c to 1 p.c decrease than the market common (usually, however not all the time, 3 p.c).
- At scale, this might save the corporate over $50 million in fee charges yearly.
Dig deeper: The info above, collected from Datadoor.io, appears 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 p.c — usually on homes which can be struggling to promote.
The underside line: Opendoor is deftly turning the client agent fee right into a aggressive benefit to optimize its enterprise mannequin.