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Offerpad allows homeowners the convenience of selling their homes quickly with their easy-to-follow process. Some of the Offerpad reviewers (read: customers) have highlighted that they were able to close their home sale in as quick as 10 days, which is truly commendable in real estate dealings.

One of the most popular companies out there which deal in buying and selling real estate properties is Offerpad. We have done all extensive research and collected all the information that is available out there (even Offerpad reviews from trusted websites) to compile this comprehensive guide that will answer any and all of your questions that you might have about Offerpad.

To simply brief you about Offerpad before you jump into this encyclopedic article, we can condense it into a simple sentence - Offerpad provides a user-friendly platform that enables homeowners the convenience to sell their homes quickly and easily.

But you need to know that there are ups and downs to every company and Offerpad is no different.
They might expedite and ease up the process of selling a house, they claim in some states they have even closed the deals within 10 days, but their speedy convenience comes at a hefty price, which is even higher than what you'd pay with a traditional realtor!

Surprised?

Read further to know more about such nitty-gritty details, pros and cons, locations, fees, how they work, what kind of property they sell or buy, and of course, how their previous customers have reviewed Offerpad.

So, let's jump in!

What is Offerpad? The homepage of Offerpad's website.

Offerpad is an iBuyer - a real estate company that is backed by modern technology, comprehensive data analytics and a bunch of experienced in-house market experts. All of these aspects come together in Offerpad functioning as an iBuyer and offering quick cash offers on houses. They work with an innovative hybrid approach of combining computer algorithms and a touch of human expertise to ascertain the fairest possible price for the property.

In the above paragraph, we used the statement "Offerpad is an iBuyer", now some of you might be misunderstanding this as some kind of a device from Apple (haha!), but it is not like that!

In the real estate domain, iBuyer is a home buying company that acts as a modern substitute for long-established real estate dealings. Offerpad is one of the iBuyer companies that buy your house at a particular price (read: market value) which is determined by using a computer algorithm, the latest local real estate data and a touch of human expertise from their seasoned team of agents.

Now that you know about its present, let's dig down a little in their history, shall we?

Established in Arizona in 2015 by seasoned real estate agents Jerry Coleman and Brian Bair, Offerpad was founded with the idea of simplifying the house selling process by eliminating the traditional snail-pace method and hectic paperwork. Back in March 2019, the iBuyer concluded a Series C funding round, bringing the total equity and debt capital raised at $975 million. According to Offerpad, they are a "leading tech-enabled direct home buyer and seller."

Offerpad reviews have been mixed. Some customers have given an unsatisfactory opinion about Offerpad's ability to streamline the buying and selling process, however, on their website, they claim that they have a 94% customer satisfaction rating. Selling your house to Offerpad at their "fairest price" is not going to be what you expect, and most of the time it is going to be lower than what you could get for your house if you go through a traditional method.

The reasons for this could be Offerpad's high fees - which is on an average 7% but could rise to as high as 10% - and their home repair deductions (which are determined after the inspection of the house).

Selling to Offerpad Vs. Selling with a Real Estate Agent

There is no doubt about the legitimacy of Offerpad. It is a legal company whose primary services include buying and selling real estate properties. However, in some of the Offerpad reviews, it was noted that the company was unnecessarily rigid and less transparent than other home buying companies in the iBuying industry, such as Opendoor.

Since Offerpad is a private company, information about their financial statements is not easily available to the common public. Offerpad makes their revenues mainly from 2 strategies:
1. Service fees (which also includes carrying costs and repairing costs)
2. Reselling homes at a higher price than they were purchased for.

But there are certain drawbacks in the iBuying space which forces Offerpad to have a difficult profit margin. In order to maintain their margin, they have to maximize their profits on every transaction. Because of this, they have to make a low offer price to their customers. If they don't do this, they won't be able to grow in this competitive domain or even maintain their bottom-line.

But things are changing as Offerpad is surely on a path to success. They intend to go public through a merger with a blank-check company in a deal that estimates Offerpad's valuation at $3 billion. In fact, Offerpad expects to churn a whopping revenue of $1.4 billion in 2021, and the company will also be listed on the NYSE under the ticker "OPAD", once the deal is done.

Once you contact Offerpad for selling your house, their dedicated team of real estate experts, who specialize in your market, inspect your house and by using their experience-backed knowledge, Offerpad's proprietary evaluation and predictive market analysis technology, they come up with an "offer price" for your property.

Your property's area (in sq. ft)

When the house was built

The layout of the house

Flooring and countertops

Landscaping

Appliances

Permitted and unpermitted additions

Closing date (as per your choice)

Whether you're working with an agent or not

Are you in the process of repairs and renovation

Photographs of your house (highly recommended to submit professional-looking photos rather than clicked from a mobile phone)

Offer Request: As a seller, the first step you will have to complete is to fill out an online form on their website. The form will have a questionnaire that collects basic information about your property that is required to determine their offer price.
Here is a list of basic information that you will be asked while filling out the online form:

Offer Calculation: Once you send them your property information and property photographs, Offerpad uses their proprietary technology called Automated Valuation Model (AVM) to ascertain your home's value. This technological output is then reviewed and tweaked (if needed) by their market experts and a final offer is determined.

Offer Acceptance: At this step, Offerpad will make you an offer for your home. And this is where it might get a little hard for you. The offer they will make will be non-negotiable. You will either have to take it or drop it and you will have 4 days to make your decision.
If you say yes to their offer price then you can move ahead with choosing a convenient closing date and you can also sign-up for their services like free local moving or an extended 60-day stay in your house after closing.

If you say no to their offer price, your business with them is done and you won't be charged for it.

Do the repairs yourself (Offerpad will ask for documentation of your work, contractor information, receipts and even photos)

Deduct the cost of repairs from the selling price

Home Inspection: Once all the paperwork is done, an official Offerpad inspector will be sent to your property to have a look at your house's actual condition and recommend reparations, if needed. The inspection fee is included in your service fee.
If repairs are recommended, you will have 2 options:

This is the point of no return in your house selling process. If you decline the repairs then this will negate your purchase agreement and if you accept the cost of the repairs but back out before closing then it will cost you a 1% cancellation fee

Closing: One of the best features when selling a house to Offerpad is that you can schedule your own closing date. Before closing the deal, they will follow a set procedure where they will visit the property to examine the agreed-upon repairs are completed or not (incomplete repairs can delay the closing), they will also collaborate with a title company to perform a title search and arrange for an escrow.

On the day of closing, you will visit the attorney's or title company's office and examine the sale documents and sign them. Once this is done, the title will be formally transferred and the deal will be closed.

First American Title for Texas, Arizona, Nevada and Florida locations

For the Georgia location, they take legal services of McMichael and Gray

For South Carolina and North Carolina, they use legal services of Hankin and Pack

Offerpad collaborates with 3 rd party vendors for title services, as per your location you will be assigned one of them.

Once the deal is closed, you will receive a cheque for your net proceeds. Keep in mind, Offerpad charges sellers for closing costs and repair costs in their service fee. Let's discuss their "service fee" in detail.

Offerpad charges their customers 7% of the transaction fees as a service fee, however, this figure can go as low as 6% or as high as 10%, as they also charge the seller for the cost of repairing the property if needed.

Offerpad Fees

So, what is Offerpad's service fee structure and how do they determine their fee? This is how their service fee structure looks like.

Companies that buy your house want to sell it at a profit. This is only possible when their reselling price is higher than what they paid for the property. So, their profit margin is a big factor in determining their fee.

It is highly unlikely that they're going to resell the purchased property just after a few days they bought it. Depending on the market, the property might sit with them for weeks or months. If it is a flat market, it might take even longer.
So, during this period Offerpad is responsible to maintain the property, and the longer it stays unsold - for any reason - it is going to burn a hole in their profits.

The real estate market has a tendency to be unpredictable and it might see a downward trend before Offerpad manages to resell the purchased house. So, a part of their service fee is crash insurance.

When you think about it, you can deduce that if the market is slow or volatile, you as a seller will have to pay a higher service fee. However, when the market is stable, you will have to pay a lower service fee.

Also, there's another catch!

You will not only be paying a service fee of 7% when you are selling your house to Offerpad but you will also need to shell out some extra cash, most possibly 1-2%, to cover the repairs and closing costs. So, in total, you are looking at an 8-12% of service fee to be paid.

Oh, we can see you are a little worried now. But don't worry, we have a perfect alternative for you. Check out our article on " How to Sell Your House Without a Realtor and Save Thousands of Dollars " to know how you can save thousands of dollars in your property sale.

iBuyers surely expedite the home selling process and allow you to take a rest from hosting house tours, marketing your home, or even waiting for a prolonged time to close the deal, but you cannot deny that they surely charge a high percentage of fees on the sale price. A percentage of which you could save if you go with a traditional method of selling.

Also, as per many Offerpad reviews, home buying companies like iBuyers have the tendency to offer a lower price than what you'd get on the market otherwise if you sell through an experienced local real estate agent.

Considering all of these reasons, as a seller, you might like to consider a 'for sale by owner' option and Houzeo - the most advanced For Sale by Owner and flat-fee MLS platform - can be just the right choice for you.

Conventional Realtor Offerpad Houzeo

💸 Customer Rating

Varies

Offerpad has 2.4 out of 5 stars from 57 reviews

Houzeo has 4.9 out of 5 stars from 1232 reviews

As hinted above, Offerpad - at the moment - only make home deals in 17 U.S. cities. The majority of these cities are located in the southern states, making their business a highly concentrated one.

Offerpad Locations

Offerpad's current locations include:

Offerpad is one of those home buying companies that are growing at a successful rate and are constantly on the lookout for expansion. As per recent news, Offerpad has announced an expansion plan in which they are extending their services in the Indianapolis market.

Yes, Offerpad does buy condos. Offerpad is one of those home buying companies that are not just popular for its service but for its expansive portfolio of purchased properties.

What types of properties does Offerpad purchase? Does Offerpad buy condos?

Many Offerpad reviews have stated that the company is very welcome towards any move-in ready properties, however, according to the company's website, they do have certain guidelines that they follow while making a purchase decision.

1. You can get in your new house quicker with a home trade-in

2. Offerpad helps you in matching your closing date with your mortgage dates to avoid unnecessary double mortgage payments

3. Once you contact them and they inspect your house (they even facilitate a virtual
tour of your house), you will get a cash offer from them within 24 hours!

4. You can sell off your property directly to Offerpad without getting into hectic
house tour arrangement, frustrating house marketing or home staging.

5. Also, you can choose your own closing date.

Selling your house to Offerpad has some really good benefits and many buyers and sellers are loving them. Some of them are:

Offerpad charges home sellers for closing costs, something that you'd see in a traditional sale
as well.

Taxes

Document transfers

Escrow fees

Title insurance

HOA transfers fees

Other customary fees

These closing costs include:

Keep in mind that these fees vary according to the market and can be in the range of 1%-3% of the purchase price. Offerpad's professional team will always be there to guide you through the process when working on title transfer or legal paperwork with the attorney.

Home buying companies buy your house buy it with an intention to resell it at a higher profit. That is how they make most of their revenues. According to some of the Offerpad reviews, it was noted that as per the condition of the house when bought, Offerpad will do some light renovations to the property to make it ready-to-sell.

Redecorating the countertops

Replacing old carpets with new ones

Painting the walls

Checking and upgrading appliances

These renovations may include:

Hosting open houses

Marketing the property and showing it to the potential buyers

Installing "house for sale" yard signs

Designing and sending out flyers

Handling documentation and the legal paperwork

Conversing with the agents

Accept/negotiate on the buyer's offer price

Collaborating with an appraiser

Paying carrying costs (remember what you read above? This will be charged to you.)

Panicking about buyer financing failure

Along with these renovations, Offerpad will also take care of certain responsibilities that otherwise you'd have to take care of. These responsibilities include:

In a nutshell, selling a house to a home buying company like Offerpad allows you to quickly sell off your property without any stress, as they handle all the responsibilities, expenses, risks, paperwork and other headaches that come in the process of selling a house.

After going through the information available on their website and some of the Offerpad reviews that are available, we have compiled this list of pros and cons that come with selling or buying your house with Offerpad.

Pros while selling to Offerpad

They give a swift and competitive offer price for your house within 24 hours. Combining their in-house market experts and technology-backed data they come up with the best price for your property.

As discussed, once Offerpad buys your property they also take all the responsibilities that come with it. Enjoy a hassle-free home-selling process.

You can choose any closing date at your convenience, as long as it is within 90 days from the day you accept their offer. They also offer you the flexibility to change the date if any unforeseen event arises. You can even close the deal within 24 hours.

How Offerpad closes the deal within 24 hours

Here's a screenshot is taken from their website:

One of the features that distinguish Offerpad from other home buying companies is that they offer free local move to every home seller. They have partnered with professional moving companies to enable this benefit to you. For additional details on this, you can visit their page here.

Selling your house to Offerpad has another benefit that you can avail, it is called "Extended Stay". Even after finalizing the sale of your home, you can stay in it for up to 60 days from the closing date. For full details visit their website page h e re.

Pros while selling with Offerpad

Offerpad's free show-ready home services

If instead of selling your house to Offerpad you choose to sell with them then they do offer some free services to give your home a facelift and make it show-ready for the market. What do these services include?
Here's a screenshot to redress your query.

While availing of their services to sell your house there might come a day where you think about selling your house directly to Offerpad instead of wasting any more time in your selling process. Offerpad has got your back here. You can communicate with them and activate a cash purchase offer anytime you want.

If you think making upgrades to your home can help you sell it for a better price then Offerpad can supply the resources and advance the funds to make it easier for you.

They will provide you with a dedicated personal team that offers expertise and support throughout your home selling journey.

You can make the most of selling with Offerpad by selling your house to them buying another from them as well. That's the power of their services.

As discussed, Offerpad fees can go as high as 10% which increases even further when they charge you for the cost of the repairs. On the other hand, if you go with a traditional method of house selling you will at most shell out 6% in agent fees.

You might be not satisfied with the price they are offering to buy your house. Some Offerpad reviews have pointed out that their house was valued at much less by Offerpad than it was in the open market.

There are certain criteria that your property must fulfill in order to be deemed purchasable by Offerpad. Like your house must be a single-family home that is built after 1960, the property should be on less than 1 acre of land and valued at no more than $600,000. If your house doesn't fulfill these criteria, Offerpad won't buy your house.

Another con that sellers mentioned while reviewing Offerpad is that you can't negotiate on their price offer. If their offer is too low for you, you are not in a position to make a higher counter-offer. Their offers are the "take it or leave it" kind of thing.

Overcharging repair costs

Some customers expressed disappointment on how Offerpad inflated the repair charges and slashed more money from their offer price.

Offerpad Buy Page

Currently, Offerpad doesn't function all over the United States. In fact, they only make deals in 17 major U.S. cities. You will be able to use their services only if you reside in any of these states.

If you want to buy on Offerpad, you will have to be a mortgage pre-qualified buyer.

You will need to consolidate all the information about your credit score, financial history and any other debt that you're currently repaying. A lender will examine your self-reported information and suggest home loans according to your financial position.

Similar to Zillow, Redfin and Houzeo, Offerpad has an online portal that shows you homes on sale
in a particular area.

You can filter out according to your requirements, for example, the number of bedrooms, area, and budget.

You might consider this step as optional, however, in today's world, it is recommended that you follow this step and download their official app.

Instead of in-person tours, Offerpad grants you the freedom to visit their property on your own schedule. You can use their app to unlock the Offerpad properties that you are interested in. Visit their properties anytime between 6 am and 8 pm, they are open all week.

If you are happy with a property that you found on Offerpad then you can go ahead and make your offer. Even if you have no agent representation you can make your offer and enter into a legal contract. If you are represented by a buyer's agent then Offerpad will provide a 3% buyer's agent commission. When Offerpad accepts your offer, you will have to work alongside their 3 rd-party lender, loanDepot to complete the deal.

Thomas D.

Thomas was happy with his home sale with Offerpad and praised Teri West - Offerpad's agent - who guided him throughout his home sale and helped him resolve all the queries . He elaborately mentioned how the company was "sympathetic" and "compassionate" towards his property sale and helped him during his stressful time of preparing to move.

Jesus B.

Jesus was quite happy with the smooth and customer-friendly website experience. The website had comprehensive information about the entire process of selling and buying which made their experience convenient and quick.

Anne W.

Anne bought a home from Offerpad and was not happy with the quality of renovation. She mentioned that the wall paint came off easily, the company lied about AC compressor's age. There were a lot of items from the inspection list that were really expensive to repair.

Philip F.

Philip was agitated with Offerpad's low-ball offer which was $50,000 even lesser than what the couple paid 25 years ago! He questioned Offerpad's carrying costs and their unethical methods of "stealing" someone's house.

Sellers Guide

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A Complete Guide to Offerpad: Reviews, Pros, Cons, Locations, Fees, and Stats - Houzeo Blog

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Offerpad allows homeowners the convenience of selling their homes quickly with their easy-to-follow process. Some of the Offerpad reviewers (read: customers) have highlighted that they were able to close their home sale in as quick as 10 days, which is truly commendable in real estate dealings.