Opendoor Expands With Title Company Acquisition
On the heels of its entrance into the mortgage business, iBuying giant Opendoor announced Thursday that it is acquiring a national title and escrow company called OS National. Opendoor will now be able to integrate title, escrow, and closings into its online buying and selling platform.
Opendoor, the largest iBuyer in the nation, makes instant cash offers to sellers, enabling homeowners to sell quickly—sometimes closing in as little as 10 days—rather than listing their properties publicly. Sellers often pay a higher commission rate for an iBuyer's services. “Title and escrow has always been a major pain point in the home buying and selling process,” Opendoor officials told CNBC. “This acquisition will enable us to start mitigating that pain point with deeper integration with OSN.”
Last September, Opendoor purchased Open Listings, a smaller home buying platform of 50 employees compared to OS National’s 500. “Consumers are confused about the status of the close and timeline, overwhelmed by hundreds of documents to understand and sign, and frustrated by the delays due to multiple parties coordinating,” says Eric Wu, co-founder and CEO of Opendoor
At the end of August, Opendoor had announced it was launching a home-loan business in Texas and Arizona that allows buyers to get a mortgage directly from the Opendoor app. The service will eventually be rolled out to other parts of the country. Opendoor touts that the home loan program will help cut closing times in half. At the time, Opendoor officials said the move “takes us one step closer to providing an end-to-end experience where you can buy, sell, or trade in a home in just a few clicks.”
Opendoor currently operates in 20 markets. It’s looking to expand into Boise, Idaho; Salt Lake City; and St. Louis by next year, CNBC reports.