Opendoor Investor Presentation Deck
Pricing: Improving model performance while
increasing buybox coverage
Absolute average error
(normalized) by year
2017
2018
-24% error reduction in
valuation model
2019
2020
2021
Total serviceable market
Buybox coverage
~$165B
2019
42%
-$230B
2020
46%
~$590B
2021
65%
Note: Absolute average error (AAE) represents the change in backtested AAE from the production version of the Opendoor valuation model at year start versus year end, on MLS transactions in Opendoor's buybox at year start. Normalization refers to
the fact that in each year, the same set of MLS transactions is used to compute the improvement in backtested error within that year; these relative within-year improvements are then successively applied to a starting value of 1.00 in 2017.
Buybox coverage is defined as the % of homes we are able to underwrite and acquire in a given market based on characteristics such as price range, home type, home location, year built, and lot size as of year end
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