Is Opendoor Your Next ‘Co-Listing Agent’?

October 25, 2018

Opendoor, a leader in the so-called iBuyer space, is planning to test a new program to co-list properties with real estate professionals outside of its firm. The company reportedly has selected about a dozen real estate teams for a preferred partnership.

Portrait of confident agent outside house

© Hero Images/Getty Images

Opendoor and other iBuyer companies—including traditional real estate brokerages that are getting in on the trend—have been expanding into the marketplace in recent months to offer a completely digital homebuying and homeselling experience. Sellers are able to obtain instant cash offers from these iBuyer firms within hours, and sales can be completed without publicly marketing properties.

Opendoor’s latest announcement differs from its previous approach to selling homes, which included listing properties it owns on MLSs. Opendoor would then use smart locks and sensors to enable buyers to tour homes without a real estate agent present. The new agent partnerships are meant to supplement that approach and will enable real estate professionals to host open houses in the homes Opendoor purchases. Also, as part of the partnerships, Opendoor will make homes that it decides not to purchase available to real estate agents for a referral fee.

Opendoor plans to be in 18 markets nationwide by the end of this year and has a goal to expand to 50 markets by the end of 2020. Wall Street is heavily backing the concept of iBuyers. Opendoor recently nabbed $400 million in funding from investors. The company’s finances are now at $2 billion as it looks to rapidly expand its footprint across the U.S.