Opendoor Plans Asset-Lite AI Model with Binding Cash Offers, Controlling Seller Funnel, Competing with Rocket Mortgage

Opendoor Technologies Inc. (OPEN) is considering a strategic shift towards a fully asset-lite business model that leverages artificial intelligence to reduce costs and eliminate holding expenses. Unlike traditional iBuying, where the company purchases, holds, renovates, and resells homes, the new approach focuses on matching sellers directly with buyers such as agents, investors, institutions, or retail buyers. Opendoor would provide a binding cash offer as a floor price, ensuring sellers receive certainty, speed, and fair pricing regardless of who funds the transaction. This model contrasts with competitors like Rocket Mortgage (RKT), which primarily engages buyers seeking mortgages, whereas Opendoor controls the seller funnel, considered the critical point in the home-selling process. The asset-lite strategy aims to reduce capital tied up in inventory, mitigate risk, and lower general and administrative expenses through AI implementation. Market participants debate the viability of this AI-driven iBuying model, with some skepticism about interest rates being the sole challenge to Opendoor's business.