Opendoor
iBuying houses with algorithms works in rising markets but creates massive losses when prices drop even 5%.
2014 → 2024
$1.9B
Real Estate/iBuying
USA
IdeaProof AI Failure Score
Full Analysis
Opendoor pioneered "iBuying" — using algorithms to make instant cash offers on homes. The model worked beautifully in rising markets but created catastrophic losses when the housing market cooled in 2022. Opendoor lost $1.4B in 2022 alone as homes it purchased at peak prices sold at significant losses. While the company technically survives, its stock dropped 95%+ from SPAC peak and the iBuying model has been proven fragile.
Could This Failure Have Been Prevented?
IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank Opendoor.