Opendoor's Purchaser Agent Commission Benefit: DelPrete

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This post has been republished with authorization from Mike DelPrete.

Even in a cooling current market, Opendoor’s buyer agent commissions — the charge compensated to a buyer’s agent when a dwelling is bought — stay drastically lessen than marketplace averages.

Why it matters: Leveraging its powers of scale, Opendoor is pushing down consumer agent commissions to lessen its bills — a trend that began in early 2020.

Opendoor’s customer agent commissions assortment from .5 % to 1 percent lower than the sector common (ordinarily, but not always, 3 p.c).
At scale, this could help save the business over $50 million in fee expenses per year.

Dig further: The info higher than, collected from Datadoor.io, seems at around 9,000 listings in Opendoor’s 20 premier markets as of Sep. 2, 2022.

There had been also 226 listings with consumer agent commissions earlier mentioned 3 % — generally on homes that are battling to offer.

The bottom line: Opendoor is deftly turning the purchaser agent fee into a aggressive advantage to enhance its small business design.

Mike DelPrete is a strategic adviser and world-wide specialist in true estate tech, like Zavvie, an iBuyer give aggregator. Connect with him on LinkedIn.

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