We answer a commonly asked question that we get daily, usually just before closing: “Does Opendoor pay my closing costs?” The quick answer is that as part of your Opendoor purchase, you’ll collect what we refer to as a set of “leading and trailing closing costs.” That’s what we call the amount that closes at the very end (e.g., fees for a title search, fees for appraisals, fees for a county recording fee) and the amount that closes at the very beginning (e.g., fees that include home inspector, appraisal, and other pre-opendoor verified inspection services). Is that fee 100% of what you’ll pay in closing costs? Not exactly, because we deduct those amounts from the exchange of cash that is wired to your bank account after the sale. Why do we do that? Well, like any wise investor, we always try and get a little something in return for the various needed investments that we’ve made to close out the transaction. Another analogy is if you order a Diet Pepsi at the ice cream store (you may get some change back), we’re from the Opendoor company and when we close the door on a deal we’re happy to be getting a little something in return.
In this post, we want to point out the “leading and trailing closing costs” that Opendoor charges. Short answer? No, Opendoor does not pay your closing costs.