Compare HomeVestors and Open Listings

For Sellers

Cash Offers
30%
Home Equity
HomeVestors does not provide real estate services to home sellers. Instead, local franchisees buy homes directly, repair and resell or rent them to tenants. Typically an offer equal to 70% of home value is expected from this type of sale after any cost of the repairs and resale.

For Sellers

Not Applicable
0
No Rates
Open Listings does not offer listing services to consumers.

For Buyers

Not Applicable
0
No Rates
HomeVestors does not provide real estate services to home buyers. Instead, local franchisees buy homes directly, repair and resell or rent them to tenants.

For Buyers

Buyer’s Savings
50%
Commission Rebate
When Open Listings represents buyers, it contributes 50% of its total Buyer's Agent Commission (2.5%-3%) as a way to financially compete for buyer’s business. Home buyers do not pay any taxes on the amount, the refund amount is always tax-free.
Question: What is the difference between HomeVestors and Open Listings?
Answer: HomeVestors is a direct home cash buyer that buys select homes off-market with cash offers and resells them at a profit to homebuyers while Open Listings is a buyer’s real estate agent and a referral fee network
Compare HomeVestors and Open Listings for home buying and selling. HomeOpenly is an impartial and an open resource focused on trending real estate services, portals and start-ups.

First published: 17 February 2019
Last updated: 25 April 2021

Buying and Selling with HomeVestors

HomeVestors (also known as We Buy Ugly Houses) is a franchise network where each individual local franchisee considers the condition of a home and makes an offer to pay cash for the property. In determining the offer, each franchisee discounts from the estimated retail value after it’s fully renovated.

HomeVestors Pricing

HomeVestors franchisees make money with a difference between buying and selling each home. Typically an offer equal to 70% of home value is expected from this type of sale after any cost of the repairs and resale.

Listing Services

  • This Service Does Not Represent Sellers

Buyer's Agent Services

  • This Service Does Not Represent Buyers

HomeVestors Editor's Review:

HomeVestors franchisee will buy a home at a price that is below market value due to necessary repairs, renovation, and other factors. After the franchisee buys the home, it renovates and resells it for a profit or rents it out to qualified tenants.

With the low offer price, comes a convenience of an all-cash closing when selling a home. HomeVestors franchisee typically closes a home in 30 days of receiving cash offer.

Typically each franchisee uses the following factors when determining the offer: existing condition of the home including repairs needed, time it will take to finish needed repairs, value of a home compared to other comparable homes in the area, real estate commission required to resell, costs associated with maintaining a home during repairs, including taxes, payments, insurance, utilities and homeowner dues.

The main disadvantage of using HomeVestors is high losses in homeowners' equity. HomeVestors is a "heavy" model, ready to buy homes in all-cash transactions.

As any real estate investor, HomeVestors franchisee is susceptible to losing money in any given transaction. This model is prone to a number of risk factors, high operational costs and a continued need for higher-than-average Return on Investment (ROI) with each flip.

HomeVestors franchisee is not legally bound to represent consumers, its main legal obligation is to its stakeholders. Moreover, because most homes in the United States are financed, homeowners own only partial net equity in their home.

Banks receive the same amount of the remaining mortgage sum regardless of how any given home is sold, or how much of homeowners' net equity is lost in the transaction with HomeVestors.

Today, there are a number of highly qualified real estate agents who offer competitive listing rates and flat fee listings across the United States. Unless a situation absolutely requires a quick sale, HomeOpenly recommends that consumers first consider using a licensed real estate agent working on competitive terms to properly list their homes on the open market before turning to HomeVestors option.

Guide References for HomeVestors:

Selling a home using an iBuyer

Where does HomeVestors operate?

HomeVestors currently operates in select areas across United States.

Buying and Selling with Open Listings

WARNING: Unlawful Kickbacks, Broker-to-Broker Collusion, False Marketing, Wire Fraud, Price Fixing.

Open Listings is a broker-to-broker collusion scheme, where "partner agents" unlawfully agree to pay massive kickbacks to receive your information and engage in market allocation, consumer allocation, false advertising, unlawful kickbacks, wire fraud, and price-fixing practices in violation of, inter alia, 18 U.S.C. § 1346, 18 U.S.C. § 1343, 15 U.S.C. § 1, 15 U.S.C. § 45, 12 U.S.C. § 2607, 12 C.F.R. § 1024.14. As a consumer, you will always significantly overpay for Realtor commissions subject to hidden kickbacks and pay-to-play steering promoted in this scheme.

United States federal antitrust laws prohibit consumer allocation and blanket referral agreements between real estate companies.

Be smart; do not allow your information to be "sold as a lead" to a double-dealing Realtor in exchange for massive commission kickbacks paid from your future home sale, or your future home purchase.


A multi-state broker rebates buyer part of the commission it receives. In some cases, Open Listings acts as an Internet referral service where it sets rebates for independent real estate brokers that do not work for Open Listings directly.

Open Listings Pricing

Open Listings offers home buyers a 50% commission rebate. Open Listings also requires a $5,000 minimum commission. Minimum commission requirement negates refund for homes priced under 150,000 USD.

Listing Services

  • This Service Does Not Represent Sellers

Buyer's Agent Services

  • Find the Property
  • Accept and Deliver All Offers and Counteroffers
  • Recommend Other Professionals
  • Attend Inspection Services
  • Schedule Private Showings
  • Negotiate Needed Repairs
  • Closing Duties

Open Listings Editor's Review:

In some cases, Open Listings represents clients directly. However, Open Listings Referral Network (Partner Agents) is a referral process that connects buyers with third-party real estate agents in exchange for an undisclosed commission split or a referral fee.

A Partner Agent who is employed by, or works with their own brokerage gets referred by Open Listings at their own discretion, as a blind match. Open Listings keeps referral fee amount hidden and does not disclose the split amount it receives from real estate agents who operate under their own license – this practice is highly deceptive and is designed to deceive consumers into thinking that Open Listings is the brokerage they are actually working with.

By engaging with Open Listings consumers authorize them to share personal information and home search history with any Partner Agent, regardless if a consumer wants to work with an Open Listings agent directly.

When shopping for a Real Estate Agent, the price alone is not as important as being able to make an informed choice about representation. Open Listings Referral Network is a poor choice for Real Estate Agents and consumers due to lack of transparency.

Open Listings’ operations as a referral network result in an inefficiency known as reverse competition and possible price fixing. Such practice may result in a lower quality of service or higher commissions.

Once Open Listings refers a customer to a Partner Agent, that agent, not Open Listings, represents the customer from the initial meeting through closing. Open Listings dictates that Partner Agent rebates 50% of their commission in order to receive a referral, while Open Listings takes a commission cut after the transaction is complete.

In the United States, all independent brokerage fees are always negotiable and each real estate agent establishes its own policy for a fee structure, amount of commissions, and issuing rebates to consumers.

Price fixing is prohibited by antitrust legislation. To fix, control, recommend, suggest or maintain commission rates, rebates, and fees for other agents' services is an improper practice.

Open Listings does not represent home sellers, but the company was acquired in 2018 by a direct home cash buyer: Opendoor.

Opendoor does not represent home sellers either, it is a real estate investor who buys homes from consumers and resells them at a profit; this practice is known as house-flipping.

When working with Open Listings, consumers may be pressured to use Opendoor by their Open Listings real estate agent. There is absolutely no requirement for anyone using Open Listings when buying a home to sell their home to an Opendoor.

As buyer’s agent Open Listings’ job is to represent consumers when making a purchase of a new home, it should not advise consumers on their existing home listing, unless a separate listing agreement exists.

Real estate agents are required by law to place their client’s interest before their own. Consumers are encouraged to read our full review for Opendoor before using the house-flipping service.

Where does Open Listings operate?

Open Listings currently operates in select areas across California, Washington, Texas, and Illinois..