In the fast-paced world of real estate, online marketplaces are revolutionizing how properties are sold. Sundae and Opendoor are two prominent companies taking this industry by storm. They help homeowners get fast cash offers for their properties.
The question is this: Sundae vs. Opendoor: which company is right for you? That’s what we’ll explore in this article. So, keep reading for all the details!
What Is Sundae?
Sundae, or Sundae Homebuyers, is an online marketplace and real estate company specializing in wholesale property investment. They primarily focus on selling properties that need renovations.
The best part is that the process is hassle-free. You don’t have to look for a good real estate agent, do clean-ups and repairs, or do showings.
You also don’t have to worry about long sales timelines or price haggling, as the company takes care of everything! Not to mention, you may receive up to $10,000 cash advance if you’re eligible for their Cash Advance program.
How Does Sundae Work?
Selling your old properties on Sundae is pretty straightforward. All you need to do is submit your information or meet a Sundae expert. You can do the former step online or over the phone.
The company’s representative will ask for information about your property and goals to see if the service is a good match.
If all goes well, a Sundae member will visit your home. During that visit, they’ll take photos and do a video walk-through to create a 3D tour of your house. Based on the evaluation, Sundae will give you an estimate for your property. They’ll take care of listing your home for auction.
However, you’ll need to fill out documents disclosing any issues and repairs needed for your house. A third-party inspector will also check your property and provide a detailed evaluation.
After the listing, all you need to do is accept the highest offer, close the deal in as little as 10 days, and move out within 60 days!
Pros
- Receive multiple offers from investors
- Sell property as it is—no repairs, renovations, or showings needed
- Close deals within 10 days
- Chance to receive a $10,000 cash advance
Cons
- Available in certain locations only
- Offers can be significantly lower than the market value
- Prolonged waiting period—auction takes four days, while sellers get three days to decide
What Is Opendoor?
Opendoor is an instant buyer (iBuyer) real estate company that went public in 2020. For those wondering, iBuyer companies use automated evaluation technology to determine a property’s value and make a purchase offer quickly, often within 24 hours.
Unlike Sundae, Opendoor buys homes directly from their owners; they don’t market them to investors to close the deal. They also provide mobile home-buying services.
You don’t need to do any repairs, renovations, or showings to sell your house on Opendoor. All you have to do is accept their bid.
The company then renovates your property and puts it on the market for investors.
How Does Opendoor Work?
To sell your house to Opendoor, you first need to visit their website and enter your address. Fill out the necessary information about your property to request an offer. This step will give you a preliminary offer of the net cash you’ll receive after sealing the deal.
If you’re satisfied with the offer, you can sign the purchase agreement online. So, is that it? Not exactly; you still have to close the deal.
Following the online agreement, Opendoor schedules a home assessment appointment whenever it’s convenient for you. This process is completely free. An experienced representative will arrive to evaluate your property’s conditions.
If your asset isn’t in good condition or needs repairs, Opendoor will deduct the costs from your net proceeds. Of course, if you disagree with the repair requests or simply change your mind, you can still cancel the agreement.
However, if you choose to seal the deal, the home advisor will walk you through the necessary steps. All you need to do is set the date and move out!
Pros
- Quick and easy selling process—in some cases, they can purchase your house within 24 hours
- No showings, repairs, or renovations on your part
- An online purchase agreement for convenience
- Flexible moving-out schedule
Cons[2]
- Repair and renovation costs are deducted from the total proceeds
- Hidden fees
- Below market value offers
Sundae vs. Opendoor: What Are the Differences?
Although both are real estate companies that operate online, Sundae and Opendoor have several differences. That includes the target market, property type, and availability. They also have different fees.
Let’s discuss each element in further detail!
Target Market
Sure, Sundae and Opendoor target homeowners. However, both have different business models.
Sundae usually focuses on distressed properties or those looking to sell their house due to financial difficulties, inheritance, or other challenging situations. Regardless of the state, Sundae aims to help sellers get a reasonable price for their assets quickly.
Opendoor, on the other hand, is more like a traditional real estate market but without all the extra steps. They target homeowners who want to sell their houses and receive cash quickly.
Unlike Sundae, Opendoor is an iBuyer, meaning they directly purchase residential properties and then resell them[3] —you don’t need to wait for investors to sell your house; the company takes full ownership. For that reason, Opendoor can be selective about the properties they buy.
Property Type
Sundae and Opendoor both offer various properties. However, the former usually focuses on selling single-family houses in their current condition, even if they’re damaged.
However, they accept other properties, including:
- Dated homes that need repairs
- Damaged properties due to natural disasters
- Inherited property
- Condemned houses
- Vacant rental houses
- Condos
- Townhomes
- Two-to-four unit buildings
As for Opendoor, they’re specific in the home types they buy. They typically only purchase single-family houses, townhomes, duplexes, and condos. However, the latter two properties are only available in certain markets.
Opendoor might not accept your property if:
- Your asset exceeds the maximum lot size, which is 2 acres
- Your home was built before 1930 (this varies by market)
- The property is out of their service area
- The house is owned by a bank or government agency
- Your home is in foreclosure or being sold as a short sale
- Your home contains unpermitted work
- Your home has a septic system
- Your property is heavily damaged due to a natural disaster
Availability
Sundae services are only available in five states. These are:
- California: Inland Empire, Los Angeles, Oakland, Orange County, Sacramento, and San Diego
- Georgia: Atlanta
- Nevada: Las Vegas
- Texas: Houston and Dallas-Fort Worth
- Washington: Seattle
- Compared to Sundae, Opendoor is more selective in some ways, but less in others. They currently operate in over 50 markets! However, only a few areas allow free, on-demand house tours with an assistant. Some of the cities offering the former service include:
- Atlanta
- Austin
- Boise
- Charlotte
- Columbia
- Dallas
- Denver
- Houston
- Indianapolis
- Jacksonville
- Las Vegas
- Los Angeles
Fees and Costs
What separates Sundae from other online real estate companies is its zero-fee policy. The company doesn’t charge the sellers any fees—no commissions, closing costs, or other hidden expenses.
You don’t even have to pay for repairs. It sounds too good to be true, right?
You see, Sundae sellers only see the net bid. The company charges the highest investor an administrative fee. The former can be equal to a 5-7% commission.
As a seller, you don’t pay for these hidden expenses. Sundae deducts the cost of its services before revealing the net proceeds.
Opendoor, on the other hand, has several pricing plans depending on whether you’ll sell or list your property with Opendoor.
In the case of selling, the company deducts a 5% service fee from the sale price and 1% for closing costs. Repair costs vary depending on the condition, but generally, they’re around 1-2%.
‘As for listing with the company, you can expect to pay a total of 7-10% for their services. They take a 5% commission and charge around 1-2% for closing costs. Aside from that, you may pay 0-2% for seller concessions and an additional 1-2% for repairs.
Sundae vs. Opendoor: Which Company Is Better?
Determining whether Sundae or Opendoor is better depends on your specific needs and priorities.
Sundae might be a suitable option if you’re looking for a marketplace that connects multiple buyers with your property. The company is also ideal for those who want to sell a distressed property with minimal to no fees deducted.
If your property is in good condition and you’re looking for a quick cash offer, Opendoor is a better fit.
Wrapping Up[4]
When comparing Sundae vs. Opendoor, you can see that each has pros and cons. Sundae specializes in worn-out properties, connecting your asset to multiple buyers without charging service fees.
Opendoor operates in more markets and provides better offers. However, they only buy assets in good condition and charge up to 7-10% in service fees.
Whichever option you choose, both Sundae and Opendoor offer a hassle-free selling process with a shorter sales timeline compared to the traditional real estate sales cycle.
