Opendoor

Offer Redesign

What is Opendoor?

Opendoor’s mission is to empower everyone with the freedom to move by simplifying the home buying and selling process. We do this by purchasing homes for about the same cost a seller normally pays a real estate agent. Opendoor typically buys well cared for homes, so we make light repairs and touch-ups, and re-sell our homes to buyers.



When a seller interested in selling their home to Opendoor, they simply come to our site, fill out a brief survey about their home, and we’ll get to work preparing them an offer. We use our own proprietary technology to help generate this, and we also have a team of home valuation experts who review the home and determine our offer price.

  The Opendoor offer before redesign.

The Challenge

We were hearing user feedback that Opendoor’s fees didn’t feel transparent or easy to understand. Experienced home sellers tend to think about the cost of selling their home as one fee: the 6% real estate agent fees that are paid in most transactions. Real estate agents typically charge 3% for buyers, and 3% for sellers. Most of the time, sellers pay for both agents’ fees, though in some hotter markets, this isn’t always the case.

This 6% number serves as a major anchor to homeowers, but it’s not the only cost associated with a home sale Home sellers will still need to make mortgage payments on their home, as well as pay for their property taxes, HOA fees, and possibly a second mortgage if the homeowner has already moved to their next home. In reality, selling a home typically costs around 10% of the home’s sale price, and can take over 60 days, even in hot markets.

  Wireframes of the offer page.

In addition, if the seller is still in the process of buying their next home while selling their current home, they likely need their home to sell before they can move. Meaning they can only make a contingent offer on the home they want to buy. In a hot real-estate market, you can lose out on your dream home in a matter of days.

We wanted to help Opendoor users better understand our value proposition, and why our 6.7% average service charge was actually quite low, and why being able to choose your own close date was an excellent benefit. We’d also recently launched a sales team, and we had been calling home sellers with their offer and going over their options with them. So we wanted an offer page that helped to reinforce that process.

  UX flows for both the offer feedback loop & scheduling a call

Process

We wireframed out a few possible varations of our fee breakdown and home information. One big goal was to take the calculator that had been on the bottom of the old offer page, and combine it with the offer and fee card higher up the page. This decision was based on some user feedback that users felt surprised, or even nickle-and-dimed when they scrolled down to see the additional costs below.

We had also determined that we needed to compare an Opendoor home sale against a traditional home sale. There were many costs associated with a traditional home sale that sellers were forgetting about when they thought of the 6% cost they associated with selling a home.

Lastly, we wanted to provide sellers with a method for contacting their Opendoor Home Expert for assistance or feedback, so we explored some easy to implement third-party solutions for things like photo uploading and scheduling phone calls with their sales rep.

The Solution

I redesigned our ‘how we calculated your offer’ page to repeat the seller’s home information back to them, and show them the comps we looked at when determining their offer. The purpose of repeating their home info back to them is to remind the user of what they entered, what we saw, and allow them to catch any mistakes or omissions they may have made when telling us about their home.

The new offer page shows the Opendoor offer against a traditional homesale so that sellers can easily see what costs they will incur each way. It helps to remind sellers that in a traditional sale, you’re not just paying the 6% real estate agent fee, you’re also covering repairs, seller concessions, closing costs, and more.

We also created a decline offer option to accompany our previous exisitng accept offer option. If a seller isn’t interest in Opendoor, we don’t want to bother them, but can instead gather their feedback through the decline flow I created. It allows sellers to select from a predetermined list of common reasons sellers decline, and also a free form text input to tell us in their own words what we can improve.

If a seller isn’t quite ready to decline, we also allow a feedback loop where sellers can inform us if they feel they misvalued their home. For example, if a seller has made large upgrades to their home they may want to send us photos and information about those upgrades to consider.

Check out the Invision prototype for this project.