Opendoor, a San Francisco online marketplace that buys and sells houses, has acquired online home buying startup Open Listings, intensifying its competition with Seattle real estate giants Zillow and Redfin.
In a blog post, Opendoor CEO said Eric Wu said the two companies complement each other because “we’ve spent the past four years transforming how people can sell a home — and Open Listings has spent the past four years doing the same for home buying.”
As part of the deal, the two companies are launching a new feature that allows customers to trade in their existing home through Opendoor while simultaneously buying a new one on Open Listings.
The deal gives Opendoor a presence in Seattle as well as Open Listings’ other markets like San Francisco, Los Angeles, Chicago and Austin. Open Listings, a Y Combinator graduate backed by Reddit co-founder Alexis Ohanian’s Initialized Capital, aims to bring the entire buying process online, from searching listings to closing, while eliminating the need to work with a traditional real estate agent throughout.
Terms of the deal were not disclosed. The acquisition is the first for Opendoor, which has amassed more than $2.4 billion in total funding — $645 million in equity and $1.75 billion in debt — including a whopping $325 million raised in June.
Opendoor was one of the pioneers of the so-called iBuyer movement — a group of companies that use technology to rapidly value and make offers on homes and then sell them quickly — along with Offerpad. That market has gotten a lot more competitive in recent years as Seattle real estate heavyweights Zillow and Redfin have thrown their hats into the ring.
Redfin jumped into direct home buying and selling last year through its Redfin Now program, and recently took off the “experimental” tag, making it a key part of the business. Zillow just expanded its Zillow Offers program to Atlanta, its third market after Phoenix and Las Vegas.