Open Listings

Overview

Open Listings let homebuyers search independently, book private showings, submit offers, and complete transaction paperwork with licensed support. Founded in Los Angeles in 2015 by Judd Schoenholtz, Peter Sugihara, and, according to Columbia, Alex Farrill, the Winter 2015 YC company returned half of the buyer-agent commission at closing.^[1][2]

This is not a conventional failure. Open Listings proved that buyers would trade an always-on commissioned agent for software, specialists, and a refund. Opendoor acquired 100% of the company on September 10, 2018 and renamed it OD Homes Brokerage.^[3] The strategic fit was stronger than the standalone model: Open Listings earned part of one commission while carrying brokerage and transaction obligations; Opendoor could combine buyer operations with seller inventory and marketplace margin.

Founding Story

The founders arrived at the idea after collectively buying three homes. Schoenholtz recalled a broker delaying his offer until Schoenholtz's wife toured the property, prompting the question: “What do I even need this person for?”^[4] Their conclusion was that buyers should be able to shop on their own while receiving expert help for the transaction steps that required it.^[2] Open Listings joined YC and launched in California in March 2015.

YC currently identifies Schoenholtz as founder and CEO and Sugihara as founder and CPO. Columbia also names Farrill as a co-founder.^[1][2] Formation documents were not observed, so this report preserves both records rather than erasing the discrepancy.

The product challenged a mismatch in buyer behavior. Consumers increasingly found listings and researched neighborhoods themselves, yet the standard transaction still bundled search, touring, negotiation, paperwork, and representation into a percentage commission. Open Listings unbundled that service. Software handled self-directed work; licensed agents covered representation and judgment; buyers received 50% of the buyer-agent commission back at closing.^[2]

The early plan was pragmatic. “If we could sell a few homes, we could scrape by,” Schoenholtz recalled, before contrasting an ordinary agency with a system that could scale.^[4] The same founder account says Eric Wu later invited the team to join Opendoor rather than raise a Series B, and the founders preferred access to Opendoor's larger user base and resources.

Timeline

• March 2015: Open Listings launched in California after joining Y Combinator.^[2]
• 2015–2017: The product expanded into one buyer workflow covering search, private showings, offers, and transaction paperwork.^[5]
• July 2017: Open Listings raised a $6.5 million Series A led by Matrix Partners, with Initialized Capital and Arena Ventures participating.^[5]
• 2018: As the company considered a Series B, Opendoor's Eric Wu proposed a combination.^[4]
• September 10, 2018: Opendoor acquired 100% of Open Listings and renamed the entity OD Homes Brokerage Inc.^[3]
• After acquisition: The team ran buyer operations within Opendoor, including reselling Opendoor-owned homes, capturing buyer-side commissions, and working on transaction margins.^[4]
• August 17, 2024: NAR practice changes prohibited compensation offers on MLSs and required written buyer agreements before tours for covered participants.^[6]

What They Built

Open Listings put the buyer journey into one application. A user searched homes, scheduled private showings, prepared and submitted an offer, and moved through transaction paperwork. Licensed agents stepped in where representation, negotiation, or legal duties required a person.^[5]

The key product decision was service unbundling. Traditional buyer representation charged a percentage linked to the home's price, even when the buyer performed much of the discovery work. Open Listings retained half of the buyer-agent commission as brokerage revenue and refunded the other half to the buyer at closing.^[2] That made savings concrete without eliminating licensed representation.

The interface may have felt like software, but the company remained a brokerage. It depended on state licenses, MLS access, fiduciary duties, and local rules governing commission refunds.^[7] Showings and transactions also carried operational risk. The model automated repeatable work while concentrating human support around moments that could change a purchase.