Instant homebuyer Opendoor is having a full circle moment. The company, which was founded in 2014 in San Francisco and has spread its iBuying services to more than 44 markets across the U.S., announced Tuesday that it is launching in the San Francisco Bay Area, the nation’s most expensive housing market.
“Eight years later, our team has grown, and we’ve proudly helped more than 100,000 people buy or sell a home in more than 44 markets in the U.S. Today, we’re coming full circle by launching one of our largest markets to date right here at home in the San Francisco Bay Area,” states a company press release.
According to Opendoor, its Bay Area coverage will span across more than 200 zip codes in several counties from Sonoma to Santa Clara. Bay Area houses built after 1940 and valued between $400,000 and $2.5 million are currently eligible for purchase. Opendoor estimates that it is able to purchase roughly 60% of homes in the Bay Area.
By using Opendoor, homeowners will have their home virtually assessed and then they can choose their closing date with they decided to proceed with the offer.
Like other iBuyers on the market, Opendoor came under scrutiny after Zillow killed off its iBuying program in early November of 2021. During the third quarter of 2021, Opendoor generated $2.3 billion in revenue and sold 5,988 homes, a 72% increase from the prior quarter. Despite this success, the company did not turn a profit, posting a $57 million net income loss, continuing the losing streak it has been on since becoming a publicly traded company in late 2020.
At the end of Q3 2021 Opendoor has 17,164 homes on its books, which it lists on its balance sheet as $6.4 billion in assets.
Earlier in November Opendoor announced its acquisition of mortgage broker RedDoor. Analysts believe that iBuyers like Opendoor may be able to move toward making money by having in-house ancillary services.