We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
How Strong Is Opendoor's Seller Funnel After Platform Shift?
Read MoreHide Full Article
Key Takeaways
Opendoor's Key Connections model has doubled seller conversions versus its direct-to-consumer channel.
Listing conversions have surged fivefold, with agents now operating in every market Opendoor serves.
Cash Plus is boosting conversions while reducing capital use and offering better downside protection.
Opendoor Technologies Inc. (OPEN - Free Report) is undergoing a major business transformation, moving from a pure-play iBuyer to a distributed platform that relies more heavily on agents and diversified offerings. At the heart of this shift lies a reimagined seller funnel designed to increase conversion, improve efficiency and generate higher-margin, capital-light revenue.
Early signs from the rollout are encouraging. According to management, the new agent-led model—dubbed “Key Connections”—has doubled the number of sellers reaching final underwritten cash offers compared to Opendoor’s traditional direct-to-consumer channel. Listing conversions have increased fivefold, and agents are now active in every market the company serves. These metrics point to a stronger and more flexible seller funnel that can handle multiple pathways: cash offer, market listing, or a hybrid “Cash Plus” option.
Cash Plus, in particular, is emerging as a promising lever. Pilots show that it is driving incremental conversions beyond standalone cash offers, while reducing capital requirements and offering better downside protection.
Still, the company notes that these initiatives are in the early stages and won’t meaningfully impact financials until 2026 due to inherent sales cycle lags. In the near term, macro headwinds—including high mortgage rates and buyer hesitancy—may limit funnel throughput. But the revamped funnel appears structurally sound, offering sellers more choice and Opendoor more ways to monetize each lead. If execution continues as planned, this platform shift could redefine Opendoor’s long-term growth engine.
Peers in the Funnel: How Zillow and Offerpad Compare
As Opendoor evolves its seller funnel, two key competitors—Zillow Group (ZG - Free Report) and Offerpad Solutions (OPAD - Free Report) —are also refining their approaches to lead capture and conversion.
Zillow is leveraging its vast consumer traffic and Premier Agent ecosystem to strengthen its seller pipeline. While it no longer buys homes directly, Zillow’s focus on seller lead monetization and listing enhancements keeps it entrenched in the funnel game. Zillow’s agent tools, marketing insights and expanding service suite are making it easier for consumers to engage early and convert efficiently. Zillow’s brand and data advantages are difficult to ignore.
Offerpad, in contrast, still competes head-on with Opendoor in iBuying, focusing on fewer markets with a more streamlined, cost-efficient model. Offerpad’s seller funnel remains anchored in direct home purchases but now includes more flexible listing options. Offerpad is ramping its seller engagement tools and digital assessments, trying to match Opendoor’s product diversity while maintaining capital discipline. Both Zillow and Offerpad are pushing hard to keep pace in an increasingly platform-driven landscape.
OPEN Stock's Price Performance, Valuation & Estimates
Shares of Opendoor have surged 406.9% year to date compared with the industry’s growth of 18.7%.
OPEN’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 1.14, significantly below the industry’s average of 5.56X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OPEN’s 2025 loss per share has widened from 21 cents to 24 cents in the past 60 days. However, the estimated figure indicates a narrower loss from the year-ago loss of 37 cents per share.
Image: Bigstock
How Strong Is Opendoor's Seller Funnel After Platform Shift?
Key Takeaways
Opendoor Technologies Inc. (OPEN - Free Report) is undergoing a major business transformation, moving from a pure-play iBuyer to a distributed platform that relies more heavily on agents and diversified offerings. At the heart of this shift lies a reimagined seller funnel designed to increase conversion, improve efficiency and generate higher-margin, capital-light revenue.
Early signs from the rollout are encouraging. According to management, the new agent-led model—dubbed “Key Connections”—has doubled the number of sellers reaching final underwritten cash offers compared to Opendoor’s traditional direct-to-consumer channel. Listing conversions have increased fivefold, and agents are now active in every market the company serves. These metrics point to a stronger and more flexible seller funnel that can handle multiple pathways: cash offer, market listing, or a hybrid “Cash Plus” option.
Cash Plus, in particular, is emerging as a promising lever. Pilots show that it is driving incremental conversions beyond standalone cash offers, while reducing capital requirements and offering better downside protection.
Still, the company notes that these initiatives are in the early stages and won’t meaningfully impact financials until 2026 due to inherent sales cycle lags. In the near term, macro headwinds—including high mortgage rates and buyer hesitancy—may limit funnel throughput. But the revamped funnel appears structurally sound, offering sellers more choice and Opendoor more ways to monetize each lead. If execution continues as planned, this platform shift could redefine Opendoor’s long-term growth engine.
Peers in the Funnel: How Zillow and Offerpad Compare
As Opendoor evolves its seller funnel, two key competitors—Zillow Group (ZG - Free Report) and Offerpad Solutions (OPAD - Free Report) —are also refining their approaches to lead capture and conversion.
Zillow is leveraging its vast consumer traffic and Premier Agent ecosystem to strengthen its seller pipeline. While it no longer buys homes directly, Zillow’s focus on seller lead monetization and listing enhancements keeps it entrenched in the funnel game. Zillow’s agent tools, marketing insights and expanding service suite are making it easier for consumers to engage early and convert efficiently. Zillow’s brand and data advantages are difficult to ignore.
Offerpad, in contrast, still competes head-on with Opendoor in iBuying, focusing on fewer markets with a more streamlined, cost-efficient model. Offerpad’s seller funnel remains anchored in direct home purchases but now includes more flexible listing options. Offerpad is ramping its seller engagement tools and digital assessments, trying to match Opendoor’s product diversity while maintaining capital discipline. Both Zillow and Offerpad are pushing hard to keep pace in an increasingly platform-driven landscape.
OPEN Stock's Price Performance, Valuation & Estimates
Shares of Opendoor have surged 406.9% year to date compared with the industry’s growth of 18.7%.
OPEN’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 1.14, significantly below the industry’s average of 5.56X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OPEN’s 2025 loss per share has widened from 21 cents to 24 cents in the past 60 days. However, the estimated figure indicates a narrower loss from the year-ago loss of 37 cents per share.
Image Source: Zacks Investment Research
OPEN stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.