Opendoor moves into Los Angeles, will now spend up to $800K on a home

Leading iBuying company Opendoor says it’s expanding into Los Angeles for the first time with a new maximum offer of up to $800,000 for homes situated in the city. Previously, the most Opendoor would offer for a home was up to $600,000.

The move comes at a time when iBuying firms are increasingly boosting their presence across the U.S. The companies tend to be either heavily financed startups or more established real estate brokerages trying their own luck in what is still a nascent market. With iBuyers, homeowners can choose to ask for an instant cash offer on their home rather than list it and wait for someone to make a bid. It’s ideal for those looking for a quick sale, and most iBuying firms say they offer a “fair market” price, though sellers do tend to pay more in fees for the convenience. In the case of Opendoor, it promises to get back to homeowners with an offer within 24 hours of them asking for one.

Opendoor’s move into Los Angeles really necessitated an increase in the amount it will offer for a home, as real estate prices there are usually much higher than in other parts of the U.S. The company said it will buy homes that it values between $200,000 and $800,000, so long as they were built after 1950. It will operate in Los Angeles, Orange and some parts of Ventura counties, it said.

Opendoor already operates in Riverside County and in some parts of Southern California.

“The traditional home buying and selling experience is riddled with stress and uncertainty, particularly in a competitive real estate market like Los Angeles,” Andy Swanton, Opendoor’s general manager in Los Angeles, said about the company’s entrance into the market.

Opendoor launched in 2014 in Phoenix. Since that time, it has expanded to more than 20 major markets across the country.