San Francisco-based iBuyer, Opendoor, is expanding to the Northeast. According to announcement on Tuesday, the firm is launching operations in parts of north and central New Jersey, as well as parts of New York, including Long Island and sections of the lower Hudson Valley.
This expansion marks Opendoor’s 46th market.
“We are thrilled to partner with sellers in two states that have fierce loyalty to their roots and strong opinions. While you’ve likely heard of some popular (and still unsettled) debates – who has the better bagels, Islanders vs. Rangers vs. Devils, Springsteen or Billy Joel, boardwalk slices vs. NY slices – these two neighboring states do have something in common: the unmet need for a digital seamless real estate process,” states a company press release.
In total, Opendoor said its New York and New Jersey coverage will span over 450 ZIP codes. In New Jersey, coverage will extend to more than 260 ZIP codes in 12 counties including, ergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Passaic, Somerset, Sussex, Union and Warren counties. In New York, Opendoor’s services will be available in more than 230 ZIP codes across five counties, including Nassau, Orange, Rockland, Suffolk, and Westchester counties.
Single-family homes in the new coverage area valued between $300,000 and $950,000 are currently eligible for purchase.
By using Opendoor, homeowners will have their home virtually assessed and then they can choose their closing date with they decide to proceed with the offer.
In the press release, the iBuyer noted that New York and New Jersey are home to some of the most expensive real estate in the country.
Like other iBuyers on the market, Opendoor came under scrutiny after Zillow killed off its iBuying program in early November of 2021. In 2021, the company recorded a net loss of $662 million, a 161% increase over its 2020 net loss and well above Zillow’s 2021 net loss of $528 million.
However, these losses came as the firm rapidly expanded, entering over 20 new markets in 2021. In addition, Opendoor resold 21,725 of the homes it bought in 2021, up 119% from 2020. It had $5.7 billion in unsold real estate inventory at the time of its full year 2021 earnings call with investors.
Earlier this year the iBuyer announced the launch of is San Francisco Bay Area market. Opendoor is now operational in many major markets across the country, including New York, New Jersey, San Francisco, Washington, D.C., Miami and Los Angeles.