Eric Wu founded Opendoor in 2014 after experiencing the pain of selling his own home. His insight: the traditional home selling process hadn't been meaningfully improved in decades, despite technology transforming nearly every other major transaction in our lives.
"The median homeowner spends 3-4 months selling their home. What if we could make it as simple as selling your car to CarMax?"
Eric Wu, Founder & Former CEO
Key Milestones
2014
Founded in San Francisco. First market: Phoenix, AZ - chosen for its large, homogeneous housing stock and predictable appreciation patterns.
2015
Y Combinator (W15). Raised $9.95M seed round from Khosla Ventures. Purchased first 35 homes.
2016-2018
Rapid expansion to 18 markets. Raised $325M Series D at $2B valuation. SoftBank Vision Fund invests $400M.
2020
Goes public via SPAC merger with Social Capital Hedosophia II. Valued at $4.8B. COVID briefly pauses operations.
Interest rates spike. Q3 losses of ~$1B. December: Eric Wu steps down as CEO, CFO Carrie Wheeler takes over. 18% layoffs.
2023
Continued inventory challenges. Additional layoffs (35% total workforce reduction). Stock falls 90%+ from peak. Eric Wu leaves company entirely in late 2023.
2024
Under CEO Carrie Wheeler, continued turnaround efforts. Housing market remains challenged with high rates. Progress toward profitability but still posting losses.
2025
August: Carrie Wheeler steps down as CEO. September: Kaz Nejatian (ex-Shopify COO) appointed CEO. Keith Rabois becomes Chairman, Eric Wu rejoins board. Q2 2025: First adjusted EBITDA profitable quarter since 2022 (+$23M).
The Founding Team
Eric Wu (Co-Founder, CEO 2014-2022) - Serial entrepreneur. Previously founded Movity (acquired by Trulia). Stanford engineering dropout. Stepped down as CEO in December 2022, left company in late 2023, returned to board in September 2025.
Keith Rabois (Board, Early Investor) - PayPal Mafia member. Khosla Ventures partner. Instrumental in early strategy and fundraising.
Ian Wong (Co-founder, CTO 2014-2020) - Former Square data science lead. Built the pricing algorithms that power Opendoor's offers.
Opendoor's current homepage - "Make the easy move"
Section 2
How Selling Works
The core product that started it all
Opendoor's core value proposition is simple: sell your home with certainty. No showings, no repairs, no waiting. It's the "CarMax for homes" model.
Who Uses Opendoor?
Understanding Opendoor starts with understanding who needs this service. It's not about maximizing sale price - it's about solving real life problems.
🚚
The Relocator
Got a job offer in another city. Needs to move in 3 weeks. Can't wait 90 days for a traditional sale.
💔
Life Transitions
Divorce. Inheritance. Health issues. Sometimes you need out fast, not maximum profit.
🔒
The Privacy-Seeker
Doesn't want strangers walking through their home. No open houses. No showing schedules.
⏰
The Busy Professional
Values time over money. Would rather pay 5% than spend 40 hours on showings and negotiations.
A Seller's Story: Meet Sarah
S
Sarah Chen
Job Relocation
Phoenix, AZ → Seattle, WA
Sarah got the call on a Tuesday: her company was promoting her to lead the Seattle office. Start date: three weeks out.
Her Phoenix home was worth around $420,000. A traditional agent told her it would take 45-60 days to sell, plus 30 days to close. That's 3 months minimum - she had 3 weeks.
She could rent it out, but she didn't want to be a long-distance landlord. She could leave it empty and sell later, but that meant paying two mortgages. Neither option worked.
Then she found Opendoor. She entered her address at 9pm. By noon the next day, she had a cash offer for $398,000. Lower than market? Yes. But it solved her actual problem.
✅
Sarah closed in 14 days, moved to Seattle, and started her new job on time. She paid ~5% less than market value but avoided 3 months of stress and carrying costs.
Sarah's Journey with Opendoor
Day 1 - Tuesday Evening
The Panic & The Search
Sarah gets the promotion call. Excitement turns to stress when she realizes she has to sell her house in 3 weeks. She Googles "sell house fast Phoenix" at 9pm and finds Opendoor.
Feeling: Anxious, overwhelmed
Day 1 - 9:15pm
Enter Address & Answer Questions
10 minutes filling out basic info about her home - beds, baths, upgrades, condition. Uploads a few photos from her phone. No commitment yet.
Feeling: Cautiously hopeful
Day 2 - 11:47am
Preliminary Offer: $405,000
Opendoor's algorithm analyzes comparable sales, market trends, and her home details. She receives an initial cash offer via email and text. It's real - not a bait number.
Feeling: Surprised, relieved
Day 4
Home Assessment
An Opendoor rep walks through for 30 minutes. They note the HVAC is original (2008) and the carpet needs replacing. These become repair credits.
Feeling: Nervous about adjustments
Day 5
Final Offer: $398,000
$7,000 deducted for HVAC and carpet. Sarah accepts. She picks a closing date 14 days out - the day before her flight to Seattle.
Feeling: Decisive, in control
Day 19
Closing Day
Sarah signs digitally. $398,000 minus the 5% service fee ($19,900) and standard closing costs (~$4,000) hits her account. Net: $374,100.
Feeling: Free, ready for Seattle
💡
The math: Sarah netted ~$374K in 19 days. A traditional sale might have netted ~$395K... in 90+ days. For Sarah, the $21K difference bought certainty, speed, and peace of mind during a major life transition.
The Opendoor seller experience starts with a single address entry
The Traditional Pain Points
⚠️
95% of sellers find the process stressful. The biggest pain? Uncertainty - 56% say not knowing if their home will sell in time is the most stressful part. (Zillow Research)
Time: Conventional process stretches 3-6 months
Showings: Keeping a home "show-ready" while living in it
Staging: $2,000-$7,200 for a 2,000 sq ft home
Uncertainty: Deals fall through, financing fails, timelines slip
Coordination: Aligning sell date with new purchase
The Opendoor Process
1
Enter Address
~10 minutes to complete
2
Get Offer
Within days
3
Assessment
30-min walkthrough
4
Pick Close Date
14-60 days out
5
Get Paid
Cash at close
Selling Options
1. Sell to Opendoor (Cash Offer)
The original iBuyer model. Sell directly to Opendoor for cash. 5% service fee (comparable to agent commissions).
2. Cash Plus (New 2025)
Get a cash advance upfront, then list on the open market. If it sells for more, you share the upside.
3. List with Partner Agent
Work with an Opendoor-vetted agent while keeping your cash offer as backup.
The Tradeoffs
💡
Opendoor typically pays 91-95% of market value. The tradeoff is speed, certainty, and convenience - not maximum price.
Section 3
How Buying Works
Self-service home buying and Opendoor Exclusives
Opendoor isn't just for sellers. The company has built a buyer experience around convenience and self-service - particularly powerful after the August 2024 NAR settlement.
A Buyer's Story: Meet Marcus & Elena
M+E
Marcus & Elena Rodriguez
First-Time Buyers, Dual Income No Kids
Dallas, TX
Marcus works nights as an ER nurse. Elena is a software engineer with back-to-back Zoom calls from 9am-6pm. Finding time to tour homes together? Nearly impossible.
Their real estate agent was great, but coordinating schedules meant maybe one showing per week. At that pace, homes they liked were under contract before they could see them.
Then Elena found Opendoor Exclusives. Houses they could tour themselves, at 7pm after her calls or 8am before Marcus slept. No agent coordination. Just unlock with the app and walk through.
They toured 11 homes in one weekend. On Sunday night, they found it: a 3-bed in Frisco, listed as an Exclusive at $385,000 - $12K below what similar homes were fetching on Zillow.
🏠
Closed in 21 days with Opendoor's cash offer backing their financing. No bidding war. No competition. They moved in 6 weeks after first downloading the app.
The Self-Tour Experience
Saturday 7:30am
Browse & Book
Elena scrolls Opendoor Exclusives over coffee. Finds 4 homes in their budget within 20 minutes of Marcus's hospital. Books self-tours for when he wakes up.
Feeling: Excited, in control
Saturday 2pm
Self-Tour #1
They pull up, open the Opendoor app, and tap "Unlock." The smart lock clicks. They walk through alone, FaceTiming Elena's mom for her opinion. No agent hovering.
Feeling: This is weird... but awesome
Saturday - Sunday
Tour 11 Homes
Between Marcus's naps and Elena's coding breaks, they tour every Exclusive in their target area. They'd never have done this with a traditional agent.
Feeling: Efficient, thorough
Sunday Night
The One
The Frisco house checks every box. Listed at $385K as an Exclusive. Similar homes on MLS: $397K+. They tap "Reserve" in the app and sign a contract by 10pm.
Feeling: We found it. This is home.
Day 21
Keys in Hand
Financing clears. Opendoor's appraisal guarantee meant no last-minute surprises. Marcus and Elena get the keys on a Tuesday morning.
Feeling: Homeowners.
✨
Why Opendoor Exclusives matter: Opendoor owns ~4,500 homes at any given time. Buyers get early access, off-market pricing, and the freedom to tour on their own schedule. No bidding wars. No contingency races.
Opendoor Exclusives
Opendoor owns significant inventory across 50+ markets. These are "Opendoor Exclusives" - homes you can tour, buy, and close on without the traditional MLS process.
Opendoor Exclusives: Off-market inventory only available through Opendoor
🏠 Off-Market Access
Homes not on Zillow or Redfin. First-mover advantage.
🔓 Self-Touring
Unlock with your phone. Tour on your schedule. No agent needed.
⚡ Skip Bidding Wars
Buy at listed prices directly from Opendoor.
✅ Price Protection
If appraisal comes in low, Opendoor adjusts the price.
Self-Tour Technology
This is particularly relevant post-NAR settlement (August 2024), when new rules required buyers to sign agreements before touring homes with agents.
Opendoor homes in Phoenix - one of their largest markets
✨
Try Before You Buy: In select markets (Dallas pilot), buyers can move in and live in a home before committing to purchase.
Section 4
The Business Model
How Opendoor makes money
Core Revenue: Buy-Renovate-Sell
Opendoor's primary business is straightforward: buy homes, make light repairs, and resell on the open market.
The Unit Economics
Service Fee: ~5% of purchase price (down from 6% historically)
Spread: Difference between buy and sell price (typically 3-7%)
Renovation Profit: Light repairs increase value by more than cost
Target Contribution Margin: 5-7% per home
Q2 2025 Revenue
$1.6B
+36% QoQ
Homes Sold (Q2)
4,299
+5% YoY
Contribution Margin
4.4%
Per Q2 2025
Gross Margin
8.2%
$128M gross profit
Why It's Hard
⚠️
Capital intensity + low margins + price volatility = high difficulty. You need billions in inventory, but prices can shift faster than you can resell.
The Capital Stack
Opendoor uses a mix of equity and debt to finance inventory:
Asset-Backed Credit Facilities: $7.3B in capacity
Non-Recourse: If a home loses value, lenders can't come after Opendoor's other assets
Spread Business: Borrow at ~7%, sell at ~10% spread = margin capture
Expanding Revenue Streams
Adjacent Services: Title insurance, escrow, mortgage (via partnerships). These add margin without inventory risk.
List with Opendoor: Earn referral fees when sellers choose traditional agents instead of cash offers.
Section 5
Market Opportunity
The $2 trillion residential real estate market
US Home Sales (2024)
$2T+
~4M transactions
iBuyer Market Share
~1%
Down from 1.3% peak
Opendoor TAM
$1.4T
In serviceable markets
Current Penetration
0.4%
Massive runway
The Structural Opportunity
Real estate has been stubbornly resistant to digital transformation. Why? High prices, emotional stakes, and entrenched intermediaries.
"Residential real estate is still a $100B/year commission business where 89% of sellers use a traditional agent. That's not innovation-proof - that's innovation-ready."
The National Association of Realtors settled a landmark antitrust lawsuit for $418M. New rules effective August 17, 2024 ended the practice of sellers automatically paying buyer agent commissions. Buyers must now sign agreements before touring homes. This disruption opens doors for alternative models like Opendoor's self-touring and direct buying.
Consumer Expectations — Millennials/Gen Z expect Amazon-like experiences
Younger buyers grew up with one-click purchases and same-day delivery. They expect transparency, speed, and digital-first experiences. Traditional 3-6 month home sales with multiple agents feel antiquated to this demographic, which now represents the largest share of homebuyers.
Labor Market Fluidity — Remote work = more relocation = more transactions
Post-COVID remote work policies have untethered workers from office locations. This has driven migration to lower-cost Sunbelt markets (where Opendoor is strongest) and increased overall household mobility, generating more real estate transactions.
Aging Population — Boomers downsizing creates selling demand
Baby Boomers own ~44% of US homes. As they age and downsize, they prioritize convenience over maximizing sale price - exactly Opendoor's value proposition. This demographic shift could unlock significant inventory over the next decade.
Mortgage rates rose from ~3% in 2021 to 7%+ in 2024. Higher rates reduce affordability, decrease transaction volumes, and can pressure home prices. Opendoor's financing costs also rise with rates, squeezing margins on both ends.
Housing Affordability — Median home price vs income at historic highs
The median US home price (~$420K) relative to median household income (~$75K) is at or near all-time highs. This affordability crisis suppresses first-time buyer demand and overall transaction volumes, limiting Opendoor's addressable market.
Inventory Shortage — "Golden handcuffs" keep owners locked in
~60% of mortgages have rates below 4%. Homeowners are reluctant to sell and give up these low rates for a new 7% mortgage. This "lock-in effect" has reduced existing home sales to 30-year lows, constraining the entire market.
Regional Concentration — Sunbelt focus is both advantage and risk
Opendoor is heavily concentrated in Sunbelt markets (Phoenix, Dallas, Atlanta, etc.) where housing stock is more homogeneous and predictable. While this aids their pricing algorithm, it also exposes them to regional downturns - as seen in 2022 when these markets corrected sharply.
Section 6
Competitive Landscape
iBuyers, portals, and brokerages
Offerpad - Direct iBuyer Rival
Opendoor's most direct competitor. Similar model, smaller scale, more conservative approach.
2024 Revenue: $919M (down 30% YoY)
Strategy: Capital-efficient, regional focus
Differentiator: Free local move, B2B renovation services
Challenges: Stock down 30% in 2025, struggling with scale
Offerpad: Direct iBuyer competitor
Similar process to Opendoor
Zillow - The Cautionary Tale
Zillow launched Zillow Offers in 2018, scaled aggressively, then spectacularly imploded in November 2021.
"We've determined the unpredictability in forecasting home prices far exceeds what we anticipated."
Rich Barton, Zillow CEO (November 2021)
💥
What went wrong: "Project Ketchup" used Zestimate as offer price, algorithm couldn't adapt to market shifts, $500M+ loss in Q3 2021 alone. 2,000 layoffs. Opendoor surviving this period was no small feat.
Zillow: Exited iBuying in 2021
Zestimate: The algorithm that failed
Redfin + Rocket - The New Threat
In 2025, Rocket Companies acquired Redfin for $1.75B, creating a vertically integrated homebuying stack.
Redfin: Search, agents, listings
Rocket Mortgage: Largest mortgage lender in America
Rocket Homes: Closing services
Redfin: Now "Powered by Rocket"
Compass: Premium brokerage model
Compass - The Off-MLS Play
Compass has 35% of listings as "Private Exclusives" - off-MLS, controversial, potentially reshaping how homes are marketed.
Leadership Transition: Eric Wu stepped down as CEO in December 2022. Carrie Wheeler (former CFO) served as CEO from Dec 2022 - Aug 2025. In September 2025, Kaz Nejatian (former Shopify COO) was appointed CEO, with Keith Rabois returning as Chairman and Eric Wu rejoining the board.
KN
Kaz Nejatian
Chief Executive Officer (Sept 2025 - Present)
Former COO at Shopify (2022-2025) where he oversaw merchant solutions, payments, and capital products. Founded Kash (fintech, acquired 2017). Queen's University business, University of Toronto law. Known for AI-first approach and operational excellence. Compensation: $1 base salary, equity tied to stock price milestones up to $33/share.
LM
Lucas Matheson
President
Former CEO of Compass Canada. Deep real estate industry experience. Running day-to-day operations and market expansion.
CS
Christy Schwartz
Chief Financial Officer
Former CFO at Redfin. Deep proptech finance experience. Leading the path to sustained profitability.
GL
Giang LeGrice
Head of Operations (Oct 2025 - Present)
Former VP of Operations at Shopify (2019-2025), where she scaled operations through hyper-growth. 20+ years operations experience across tech, retail, and e-commerce. Started career as an actuary. University of Manitoba (BCom, Actuarial Math & Finance). Known as Kaz's "second-in-command" at Shopify - brought to Opendoor to drive operational excellence and AI-powered efficiency.
CW
Carrie Wheeler
Former CEO (Dec 2022 - Aug 2025)
Served as CFO (2020-2022) before becoming CEO during company's most challenging period. Led turnaround efforts including cost cutting and path toward profitability. 25+ years in private equity. Stepped down in August 2025 amid investor pressure. Currently serves on boards of TKO Group and APi Group.
EW
Eric Wu
Co-Founder, Board Member (Sept 2025 - Present)
Founded Opendoor in 2014. Stanford engineering dropout. Previously founded Movity (acquired by Trulia). CEO 2014-2022, left company in late 2023. Returned to board in September 2025 alongside Kaz's appointment. Also co-founder of NavigateAI. Invested $40M alongside Khosla when Kaz was appointed.
Board of Directors
Keith Rabois - Chairman (Sept 2025). Khosla Ventures partner, PayPal Mafia member. Original investor and co-founder. Returned as Chairman alongside Kaz's appointment.
Other notable directors include Cipora Herman (former Amazon exec) and Jason Kilar (former Hulu CEO, WarnerMedia CEO).
Section 8
Current State
Q2 2025 results and recent developments
📈
Milestone achieved: Q2 2025 was Opendoor's first adjusted EBITDA positive quarter since 2022 (+$23M). A significant turning point after years of losses.
Q2 2025 Highlights
Revenue
$1.6B
+36% QoQ, +4% YoY
Homes Sold
4,299
+5% YoY
Adj. EBITDA
+$23M
First profitable Q since 2022
Inventory Value
$1.5B
~4,538 homes
Stock Performance
Current Price: ~$1.50-2.00 (as of Jan 2025)
52-Week Range: $1.07 - $4.90
All-Time High: $39 (Feb 2021)
Market Cap: ~$1.2B
Recent Developments
CEO Transition (Sept 2025): Carrie Wheeler stepped down in August. Kaz Nejatian (ex-Shopify COO) appointed CEO. Keith Rabois returns as Chairman, Eric Wu rejoins board.
$40M Investment: Khosla Ventures and Eric Wu invested $40M alongside new CEO appointment.
Stock Surge: Stock jumped 78% on CEO announcement news.
Opendoor 2.0: New AI-first strategy focused on software and operational excellence.
The Turnaround Narrative
After near-death experience in 2022-2023 (90%+ stock decline, multiple layoffs), Opendoor has stabilized. The question now: is this a launching pad for renewed growth, or a lower plateau?
Section 9
Risks & Challenges
What could go wrong
Macro Risks
🏦 Interest Rate Sensitivity
Higher rates = fewer buyers = longer holding periods = margin compression. Opendoor's financing costs also rise with rates.
📉 Housing Price Volatility
The core risk. A 5-10% national price decline could wipe out years of margin. The 2022-2023 experience showed this isn't theoretical.
🏠 Transaction Volume
Existing home sales remain near 30-year lows. "Golden handcuffs" - homeowners locked into low-rate mortgages - constrain inventory.
Business Risks
💰 Capital Intensity
iBuying requires billions in inventory. Capital costs are high, and access can tighten quickly in downturns.
🎯 Pricing Algorithm Risk
The algorithm must be more accurate than the market. Systematic mispricing (like Zillow) can compound quickly.
🏃 Competition
Rocket/Redfin combination. Compass off-MLS strategy. Traditional agents still control 89%+ of transactions.
Operational Risks
Geographic Concentration: Heavy Sunbelt exposure is both opportunity and risk
Execution Risk: New CEO, new strategy, organizational change
Regulatory: Real estate is heavily regulated; rules can change
Brand/Trust: iBuyer reputation still being established with consumers
⚠️
The bear case: iBuying is structurally challenged. Margins too thin, capital too expensive, price risk too high. Opendoor survives but never achieves venture-scale returns.
Section 10
The Future
Where Opendoor goes from here
The Bull Case
1. Market Normalization: When rates stabilize and transaction volumes recover, Opendoor is positioned to capture disproportionate share.
2. Operational Leverage: Fixed costs are now right-sized. Incremental volume falls to the bottom line.
3. Product Expansion: Title, escrow, mortgage, buy-side services create new margin streams without inventory risk.
4. Consumer Shift: Post-NAR settlement, buyers want alternatives. Self-touring and Exclusives become more attractive.
Strategic Priorities Under Kaz
Sustainable Profitability: Not just one quarter - consistent, repeatable margin
Product Innovation: Cash Plus, expanded buyer services, new offerings
Operational Excellence: Shopify-style focus on efficiency and execution
Market Expansion: Selective, not aggressive - prove economics first
What to Watch
📊 Contribution Margin
Can they sustain 5%+ consistently?
🏠 Market Share
Gaining vs competitors?
🆕 New Products
Cash Plus adoption, buyer services growth
💵 Cash Flow
Operating cash flow positive?
"Real estate has barely been touched by technology or AI... I think this company can become a multi-hundred billion dollar company."
Kaz Nejatian, CEO (Sept 2025 appointment)
The Bottom Line
Opendoor has survived what Zillow couldn't. Under new leadership, with profitable operations finally in sight, the company has earned the right to try again. The question is whether the market will give them the time - and the volume - to prove the model works at scale.
🎯
The opportunity: If Opendoor can capture even 3-5% of the $2T residential market with sustainable margins, it's a $50B+ company. That's the bet.
