• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Tech

How to Trade In Your House

By
Kia Kokalitcheva
Kia Kokalitcheva
Down Arrow Button Icon
By
Kia Kokalitcheva
Kia Kokalitcheva
Down Arrow Button Icon
March 9, 2016, 9:00 AM ET
109350668
For sale sign in yard of housePhotograph by Martin Barraud — Getty Images/OJO Images RF
Add Fortune on Google for similar content.

Many home buyers need to sell their current house before they can complete their purchase, or even think about their next home.

Unfortunately, orchestrating both transactions can be complicated and often results in those who sold a home having to temporarily live in a rental home or hotel in between the transactions.

San Francisco startup Opendoor, which aims to make home buying and selling easier and faster, on Tuesday debuted a service that lets customers “trade in” their home for another one. As the term suggests, it’s designed for homeowners who are selling their current home in order to purchase and move into a new one.

“Some sellers won’t accept your offer if it’s contingent on your selling your other home,” Opendoor co-founder and CEO Eric Wu told Fortune of the challenges home buyers often face.

As Wu explained, the service was born out of existing customer needs and requests. More than half of Opendoor’s customers are selling their homes to the company because they’re looking for a new house, he said. To help with this, the startup makes them an offer for their current home, works with their next home’s real estate, title, and escrow agents to process everything, and lets them pick the date they want the sale to close so they can receive the funds when they need them.

Note that Opendoor’s trade-in customers must be selling a home in one of the company’s current markets—Phoenix and Dallas—though the home they want to purchase can be located anywhere in the U.S. It also slashes its fee by 2% if the seller purchases his or her next home through its service.

Get Data Sheet, Fortune’s technology newsletter.

Founded in 2014, Opendoor debuted its home-selling service in Phoenix in late 2014, and has since expanded to Dallas. The company has built its own pricing model, which mines public and private data to generate a fair offer price within minutes of the seller’s submission through its website. It charges 0-6% more than a traditional real estate agent and uses a credit line from an undisclosed financial institution to purchase the homes. Opendoor says one-third of home sellers who receive an offer from it accept. It then handles all the paperwork, and even the minor fixes and upgrades on the homes.

For buyers, it has designed a self-serve home-viewing system that lets buyers visit a listing at any time, which it claims results in 50 showings per home listing.

For more on real estate, watch:

That convenience and easy process is what impressed Opendoor trade-in customer Greg Starr of Phoenix the most. In early January, Starr began looking for a new house. By Feb. 5 (he estimates the entire process took roughly 27 days) he had moved into his freshly touched-up new home.

“It was just such a nice, easy process,” Starr told Fortune in a phone interview. “We sold a house before and it was hell,” he added.

In particular, Starr appreciated being able to offload his house to Opendoor without going through the hassle and inconvenience of showing it to prospective buyers. He and his wife were also able to avoid having to live at an extended-stay motel while looking for their new home, something they originally expected to have to do before they stumbled upon Opendoor when they contacted a home listing’s agent.

“They went over there, appraised it, and then came back with an offer, and it was right on what I was hoping, and then a bit more,” Starr said with a laugh about Opendoor’s offer for his previous home.

Currently, Opendoor buys about $25 million worth of homes in Phoenix every month and $10 million worth in Dallas. By the end of the year, the company hopes to expand to three additional markets. To date, Opendoor has raised $110 million in funding.

About the Author
By Kia Kokalitcheva
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Digital transformation technology strategy, IoT, internet of things. Businessman using smart phone with AI and Digital Icons design.
AICFO Daily
Top CFOs warn AI success depends on training employees, not just buying technology
By Sheryl EstradaJune 25, 2026
1 hour ago
Samin Menon (left) Neil Movva (right)
Startups & VentureVenture Capital
Exclusive: A former Apple engineer thinks AI infrastructure is built for the wrong future. Investors just gave him $80 million to fix it
By Lily Mae LazarusJune 25, 2026
2 hours ago
Lux Capital cofounder Josh Wolfe’s limited-odds, high-stakes 2027 predictions
NewslettersTerm Sheet
Lux Capital cofounder Josh Wolfe’s limited-odds, high-stakes 2027 predictions
By Allie GarfinkleJune 25, 2026
4 hours ago
Micron drives global rally tech stock rally as traders abandon their fear of an AI bubble
InvestingMarkets
Micron drives global rally tech stock rally as traders abandon their fear of an AI bubble
By Jim EdwardsJune 25, 2026
4 hours ago
OpenAI CEO Sam Altman (left) and Broadcom CEO Hock Tan holding their new AI chip, “Jalapeño.” (Photo courtesy OpenAI)
NewslettersFortune Tech
OpenAI and Broadcom’s AI chip has a name: Jalapeño
By Andrew NuscaJune 25, 2026
4 hours ago
What bubble? JPMorgan says the $5.5 trillion AI capex explosion is profitable–for now
AIFinance
What bubble? JPMorgan says the $5.5 trillion AI capex explosion is profitable–for now
By Sheryl EstradaJune 25, 2026
4 hours ago

Most Popular

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
1 day ago
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
1 day ago
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Retail
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
23 hours ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
1 day ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
2 days ago
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
Economy
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
By Tristan BoveJune 24, 2026
20 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.