{{short description|American real estate company}} {{Infobox company | name = Opendoor Technologies Inc. | native_name = | native_name_lang = | logo = File:Opendoorlogo.svg | logo_caption = | logo_padding = | image = | image_size = | image_alt = | image_caption = | type = Public | traded_as = {{ubl|{{NASDAQ|OPEN}}|Russell 2000 component}} | founded = {{Start date and age|2014|03}} | hq_location = {{nowrap|San Francisco, California, U.S.}} | industry = {{ubl|Real estate development|Property management|Real estate}} | key_people = {{Unbulleted list|Kaz Nejatian <ref>{{Cite web |last=Palmer |first=Annie |date=2025-09-10 |title=Opendoor taps new CEO and names Keith Rabois chairman, boosting stock 30% |url=https://www.cnbc.com/2025/09/10/opendoor-stock-jumps-20percent-after-company-taps-ex-shopify-coo-as-new-ceo-.html |access-date=2025-09-10 |website=CNBC |language=en}}</ref> Kaz Nejatian(CEO)|Eric Jackson (Key Investor)}} | products = | revenue = {{decrease}} {{US$|5.15 billion|link=yes}} (2024) | operating_income = {{increasenegative}} {{US$|-320 million}} (2024) | net_income = {{decrease}} {{US$|-392 million}} (2024) | assets = {{decrease}} {{US$|3.13 billion}} (2024) | equity = {{decrease}} {{US$|713 million}} (2024) | num_employees = 1,100 (2025) <ref>{{cite web|date=2025-11-06|title=Opendoor Financial Open House Q3'25|url=https://www.youtube.com/live/vZ6YLIlMGkw?si=ibj3LLlvP1M9-a5b&t=2505|website=YouTube}}</ref> | founders = {{ubl|Keith Rabois |Eric Wu |Ian Wong |JD Ross}} | website = {{URL|opendoor.com}} | footnotes = <ref name=AnnualR2024>{{cite web|title=Opendoor Technologies, Inc. 2024 Annual Report |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1801169/000180116925000017/open-20241231.htm |publisher=U.S. Securities and Exchange Commission |date=February 27, 2025}}</ref><ref name="venturebeat">{{cite web|url=https://venturebeat.com/2014/05/29/heres-investor-keith-rabois-bold-new-home-selling-startup-opendoor/|title=With $10M and a long list of big-name investors, Opendoor is almost open for business|date=29 May 2014|publisher=Venturebeat|access-date=2020-05-16|archive-date=2020-10-26|archive-url=https://web.archive.org/web/20201026022340/https://venturebeat.com/2014/05/29/heres-investor-keith-rabois-bold-new-home-selling-startup-opendoor/|url-status=dead}}</ref> }}
'''Opendoor Technologies Inc.''' is an online company that buys and sells residential real estate. Headquartered in San Francisco, it makes instant cash offers on homes through an online process, makes repairs on the properties it purchases and re-lists them for sale.<ref name=venturebeat /> It also provides mobile application-based home buying services along with financing. As of November 2021, the company operates in 44 markets in the US.<ref>{{cite web|date=Nov 10, 2021|title=Opendoor Announces Third Quarter 2021 Financial Results|url=https://investor.opendoor.com/news-releases/news-release-details/opendoor-announces-third-quarter-2021-financial-results|access-date=January 4, 2021|website=Opendoor.com}}</ref>
== History ==
The company was founded in March 2014 by serial entrepreneurs Keith Rabois, Eric Wu, who previously founded Movity, a real-estate startup acquired by Trulia,<ref>{{Cite web |last=Huddleston |first=Tom Jr. |date=2019-05-22 |title=This millennial used scholarship money to buy property in college—now his real estate company is worth $3.8 billion |url=https://www.cnbc.com/2019/05/22/how-self-made-millionaire-real-estate-ceo-bought-first-home-at-19.html |access-date=2022-04-13 |website=CNBC |language=en}}</ref> and JD Ross, now a co-founder at With Coverage. After raising a $9.95m venture capital round led by Khosla Ventures in May 2014, the company began operations.<ref name="venturebeat"/> In 2018, Opendoor raised $400m in funding from the SoftBank Group Vision Fund.<ref>{{cite web|url=https://techcrunch.com/2018/09/27/opendoor-just-raised-400-million-in-funding-from-softbanks-vision-fund/|title=Opendoor just raised $400 million in funding from SoftBank's Vision Fund|publisher=Techcrunch|access-date=2020-05-16}}</ref> In 2019, it raised $300m in a funding round led by General Atlantic. At the time, the enterprise valuation was $3.8b.<ref name="tc2019"/>
In August 2019, Opendoor launched mortgage services through Opendoor Home Loans, an in-house mortgage business.<ref>{{cite news |last1=Lane |first1=Ben |title=Opendoor is now a mortgage lender, launches Opendoor Home Loans |url=https://www.housingwire.com/articles/50038-opendoor-is-now-a-mortgage-lender-launches-opendoor-home-loans/ |work=HousingWire |date=29 August 2019}}</ref> In September 2019, it acquired national title and escrow company OS National, allowing integration of title, escrow and closing services under its business offerings.<ref>{{cite news |last1=Rosenbaum |first1=Eric |title=Opendoor buys title company OS National in bid to own more of residential real estate market |url=https://www.cnbc.com/2019/09/05/house-flipper-opendoor-buys-title-firm-in-bid-for-more-real-estate.html |work=CNBC |date=5 September 2019 |language=en}}</ref>
In early 2020, Opendoor expanded services to more cities in partnership with Redfin.<ref>{{cite news |last1=Falcon |first1=Julia |title=Opendoor and Redfin expand homebuying partnership to nine new cities |url=https://www.housingwire.com/articles/opendoor-and-redfin-expand-homebuying-partnership-to-nine-new-cities/ |work=HousingWire |date=13 February 2020}}</ref> Later, the company laid off 600 employees, which made up 35% of its team, partially due to business impact from the COVID-19 shutdown.<ref>{{cite web|url=https://techcrunch.com/2020/04/15/softbank-backed-opendoor-has-announced-a-massive-layoff-cutting-35-of-its-employees/|title=SoftBank-backed Opendoor has announced a massive layoff, cutting 35% of its employees|publisher=Techcrunch|access-date=2020-05-16}}</ref> In March, Opendoor announced they would suspend home buying during the COVID-19 pandemic out of concerns for the safety of their customers.<ref>{{Cite web|date=2020-03-20|title=Opendoor, Zillow begin pausing homebuying, citing coronavirus concerns|url=https://www.housingwire.com/articles/opendoor-and-zillow-put-a-pause-on-ibuying-citing-coronavirus-concerns/|access-date=2020-06-08|website=HousingWire|language=en-US}}</ref> The company resumed its operations in May 2020 by introducing a contact-free platform to help people buy and sell homes digitally.<ref>{{Cite web|title=Opendoor returns to homebuying with contact-free selling|url=https://www.inman.com/2020/05/04/opendoor-returns-to-homebuying-with-contact-free-selling/|access-date=2020-06-08|website=Inman|language=en-US}}</ref><ref>{{cite news |last1=Writer |title=Opendoor resumes iBuying in all pre-pandemic markets |url=https://www.inman.com/2020/08/18/opendoor-resumes-ibuying-in-all-pre-pandemic-markets/ |work=Inman |date=August 18, 2020}}</ref>
On April 27, 2020, Social Capital Hedosophia Holdings Corp II, a special-purpose acquisition company steered by Chamath Palihapitiya, commenced trading on the New York Stock Exchange.<ref>{{Cite web |title=Social Capital Hedosophia Holdings Corp. II Announces Pricing of Upsized $360 Million Initial Public Offering |url=https://www.sec.gov/Archives/edgar/data/1801169/000110465920054449/tm2017926d1_ex99-1.htm |access-date=2023-07-11 |website=www.sec.gov}}</ref>
On September 15, 2020, Social Capital Hedosophia Holdings Corp II announced its intention to merge with Opendoor.<ref>{{Cite web |title=Opendoor, a Leading Digital Platform for Residential Real Estate, Announces Plans to Become Publicly-traded via Merger with Social Capital Hedosophia |url=https://www.sec.gov/Archives/edgar/data/1801169/000110465920105058/tm2030504d1_ex99-1.htm |access-date=2023-07-11 |website=www.sec.gov}}</ref> The deal valued Opendoor at an enterprise value of $4.8 billion.<ref>{{cite news |last1=Kirsch |first1=Noah |title=Home Buyer Opendoor Is Going Public In $4.8 Billion Merger |url=https://www.forbes.com/sites/noahkirsch/2020/09/15/home-buyer-opendoor-is-officially-going-public-in-48-billion-deal/#73c400d4134f |work=Forbes |date=September 15, 2020 |language=en}}</ref><ref>{{cite news |last1=Picker |first1=Leslie |title=Palihapitiya finds next '10x idea' with $4.8 billion SPAC deal for real estate start-up Opendoor |url=https://www.cnbc.com/2020/09/15/palihapitiya-finds-next-10x-idea-with-4point8-billion-spac-deal-for-real-estate-start-up-opendoor.html |work=CNBC |date=15 September 2020 |language=en}}</ref>
On December 17, 2020, shareholders of Social Capital Hedosophia Holdings Corp II approved the merger.<ref>{{Cite web |title=Social Capital Hedosophia Holdings Corp. II |url=https://www.sec.gov/Archives/edgar/data/1801169/000110465920136760/tm2038661d1_8k.htm |access-date=2023-07-11 |website=www.sec.gov}}</ref> On December 21, 2020, the merger was finalized and the company began trading on the NASDAQ stock exchange under its new name, Opendoor.<ref>{{Cite news|date=2020-12-21|title=Opendoor's Market Debut Caps Roller Coaster Year in Housing|language=en|work=Bloomberg.com|url=https://www.bloomberg.com/news/articles/2020-12-21/opendoor-shares-slip-in-market-debut-following-merger-with-spac|access-date=2020-12-30}}</ref>
In 2021, the company bought 37,000 homes.<ref name="2023-reuters.com"/>
In the beginning of 2022 the company began buying houses in the Bay Area.<ref name="2023-sfgate">{{cite web|url=https://www.sfgate.com/tech/article/opendoor-real-estate-tech-layoffs-17908963.php|title=San Francisco-based real estate darling Opendoor lays off 22% of its workforce|date=2023|website=SFGate|publisher=}}</ref>
On August 1, 2022, the Federal Trade Commission reported that Opendoor has agreed to pay a settlement of $62 million over charges of misleading potential home sellers in its marketing campaigns.<ref>{{cite web |url=https://consumer.ftc.gov/consumer-alerts/2022/08/closing-door-home-buying-company-opendoors-false-claims |title=Closing the door on home buying company Opendoor's false claims |date=1 August 2022 |publisher=Federal Trade Commission |first=Amy |last=Herbert}}</ref><ref>{{cite news |url=https://www.latimes.com/business/story/2022-08-01/opendoor-to-pay-62-million-to-settle-ftc-claims-it-misled-home-sellers |title=Opendoor to pay $62 million to settle FTC claims it misled home sellers |date=1 August 2022 |work=Los Angeles Times |first=Patrick |last=Clark |url-access=limited}}</ref>
In the fourth quarter of 2022, Opendoor sold around 7,500 homes at an average loss of $28,000 each, compared to an average gain of $16,000 for each sale a year earlier.<ref name="2023-therealdeal.com"/>
In late 2022 co-founder Eric Wu remained CEO.<ref name="2022-techcrunch.com">{{cite web |date=2022 |title=Opendoor lays off about 550 employees, or 18% of its workforce |url=https://techcrunch.com/2022/11/02/opendoor-lays-off-about-550-employees-or-18-of-its-workforce/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAJT9lzet2ImDVfwfW5s7sW-2wr48tvfFqhWNnqD7bzYo2dfdo9SX0FXH5TiO8FyTsxq6eX3ml9-r4oL8UIgxNuBvF5zt3L-UOwIA4fNLQyrNL1Wc8p7ImgpcJmeT_F5KPzsVw_MFY_5Ku1xVRJFI01aWKL_zRcvvYAdplWKyT5Ie |access-date=2023-07-11 |website= |publisher=}}</ref> After losses, he was replaced in the post by Carrie Wheeler in early 2023.<ref name="2023-therealdeal.com">{{cite web |date=2023 |title=Opendoor cuts 22% of staff |url=https://therealdeal.com/national/2023/04/18/opendoor-cuts-22-of-staff/ |access-date=2023-07-11 |website= |publisher=}}</ref> Opendoor reported a loss of $1.4bn in 2022, after a loss of $662 million in 2021. Sales in 2022 were $15.6 billion.<ref name="2023-reuters.com"/> In November 2022 Opendoor cut 18% of its workforce, or 550 jobs.<ref name="2023-reuters.com"/>
Ahead of its 2020 IPO, the company's market cap was around $18 bn. That cap in early 2023 was slightly above $1 billion.<ref name="2023-therealdeal.com/2">{{cite web |date=2023 |title=Opendoor loses $400M as home sales tank |url=https://therealdeal.com/national/2023/02/24/opendoor-loses-400m-as-home-sales-tank/ |access-date=2023-07-11 |website= |publisher=}}</ref>
Opendoor cut 22% of its workforce in April of 2023, or roughly 560 positions mostly in the company's operations unit, citing a declining housing market. The company said new listings had dropped by around 30% since their 2022 peak due in part to rising mortgage interest rates.<ref name="2023-reuters.com">{{cite web |date=2023 |title=Online US real estate firm Opendoor cuts 22% of workforce |url=https://www.reuters.com/business/online-us-real-estate-firm-opendoor-cuts-22-workforce-2023-04-18/ |access-date=2023-07-11 |website=reuters.com |publisher=}}</ref>
Opendoor began collaborating with Zillow in Colorado in June 2023. At that time Opendoor was the largest "iBuyer" in the United States.<ref name="2023-www.denverpost.com">{{cite web |date=2023 |title=Former real estate rivals Opendoor and Zillow now partners in Colorado |url=https://www.denverpost.com/2023/06/02/opendoor-and-zillow-partners-in-colorado-real-estate-housing/ |access-date=2023-07-11 |website= |publisher=}}</ref>
== Business model ==
Property owners bid to sell their properties on the online platform. When a bid is accepted, Opendoor purchases the property as-is, charging a fee comparable to the commissions real estate agents collect in return for the convenience of closing a sale quickly without home showings.<ref name="bloomberg">{{cite news|url=https://www.bloomberg.com/news/articles/2020-05-04/home-flipping-giant-opendoor-says-it-s-time-to-resume-buying|title=Home-flipping giant Opendoor says it's time to resume buying|newspaper=Bloomberg.com |date=4 May 2020 |publisher=Bloomberg|access-date=2020-05-16}}</ref>
Opendoor then makes necessary repairs before relisting the property. By following this process, the company is known as an "iBuyer" in the real estate industry.<ref name="clever">{{cite web|url=https://listwithclever.com/real-estate-blog/ibuyer/|title=What Is an iBuyer? (And Should I Sell My House to One)|date=24 September 2020|publisher=Clever Real Estate|access-date=2021-07-13}}</ref> Through this process, Opendoor carries an inventory of homes. In 2019, the company reported that the average time a property is held by the company is 90 days.<ref name="tc2019">{{cite web|url=https://techcrunch.com/2019/03/20/opendoor-raises-300m-on-a-3-8b-valuation-for-its-home-marketplace/|title=Opendoor raises $300M on a $3.8B valuation for its home marketplace|publisher=Techcrunch|access-date=2020-05-16}}</ref> The company has considered renting properties to make use of excess inventory.<ref name="dailybeatny">{{cite web|url=https://www.dailybeatny.com/2020/05/06/opendoor-open-for-business/|title=OpenDoor back open for business|date=6 May 2020|publisher=Daily Beat NY|access-date=2020-05-16|archive-date=2020-10-22|archive-url=https://web.archive.org/web/20201022065656/https://www.dailybeatny.com/2020/05/06/opendoor-open-for-business/|url-status=dead}}</ref>
==References== {{Reflist}}
==External links== *{{Official|https://www.opendoor.com}} {{Finance links | name = Opendoor Technologies Inc. | symbol = OPEN | reuters = OPEN.O | bloomberg = OPEN:US | sec_cik = 1801169 | yahoo = OPEN | google = OPEN:NASDAQ }}
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Category:2014 establishments in California Category:Real estate companies established in 2014 Category:Companies based in San Francisco Category:American real estate websites Category:SoftBank portfolio companies Category:Special-purpose acquisition companies Category:Companies listed on the Nasdaq