## What is Offerpad?

Offerpad is a platform that specialized in iBuying. iBuying is a new emerging business where a home seller can receive a quick quote on their home. Initial offer price comes in within 24 hours. Offerpad's quotes are often at a discount to prevailing market rates. Homeowners don't have to make costly repairs to their home to get an offer. Part of the appeal is that there are no real estate agents commissions. The whole process is quick with closing date coming within a week. This is in contrast to standard 30 to 45 days with traditional sales. Since Offerpad is the sole buyer, there are no negotiations. Owner won't have to host any open houses since Offerpad is the sole buyer. Offerpad will conduct their own home inspection. Offerpad, provides offers below open market prices and does not let owners negotiate. However, Offerpad is open to a second review if the owner believes that some detail was missed. 

 

While the closing might be quick, the final sale price might be below current market prices. This is due to missing out on competition created by an open market. When many retail buyers go to an open house and compete for the property, it tends to result in higher prices. While this process is tedious and requires more work, it results in higher sales price. When many people compete for the same property the home owner benefits. OfferMarket creates competition by having an open and free real estate marketplace. Having an open and free marketplace attract many sellers and buyers. 

 

iBuyers and Offerpad do not charge commissions, but they do charge a service fee. This service fee can be as high as 10% of the value of the home. Sometime the final service fee is not finalized until last moment when home owner about to sign. This is not the best business practice. There have been reports that the 1% contract cancellation fee is not disclosed up front. This tactics locks in owners if they change their mind after they sign initial documents. 

 

Selling to Offerpad can be convenient and quick, but the price might be way too steep. Make sure to get a second opinion on your home valuation before proceeding to sign anything so you are aware of the potential valuation ranges for your property. Its important to understand if your goal is to get top dollar for the property or to sell it quickly without minding a steep discount to the market value. 

 

## Offerpad doesn't operate nationwide

As of Summer 2021, Offerpad only operated in 19 markets, mostly in Souther United States:

 

- Phoenix, AZ

- Tucson, AZ

- Jacksonville, FL

- Orlando, FL

- Tampa, FL

- North Carolina, FL

- Charlotte, FL

- Raleigh, FL

- Austin, TX

- Dallas-Fort Worth, TX

- Houston, TX

- San Antonio, TX

- Las Vegas, NV

- Charlotte, SC

- Atlanta, GA

- Birmingham, AL

- Denver, CO

- Indianapolis, IN

- Nashville, TN

 

## Offerpad is selective in what homes it buys

 


Offerpad has strict buying criteria to which it adheres in all buying decisions. The property must be a single family home. It must be build after 1960. Land lot on which the home is situated must be smaller than one acre. Value of the home must not exceed $600,000 in most markets. The home absolutely must not be outside their service area. They are not interested in purchasing mobile homes or homes that were pre-fabricated or manufactured. Offerpad also doesn't make offers on homes that are suspected of having any types of foundation damage.

## There are other options out there:

 

- OfferMarket

- Opendoor

- Zillow Offers (shut down November 2021)

- RedfinNow

 

| Service | Type | Offer Competitiveness |
| ------------- | ----------- | -------------------------- |
| Offerpad | iBuyer | Low |
| Opendoor | iBuyer | Low |
| Zillow Offers | iBuyer | Low |
| RedfinNow | iBuyer | Low |
| OfferMarket | Marketplace | High |

 

## Instant offers

 

Offerpad is an "iBuyer" (short for "instant buyer") of single family homes. iBuying is a new home sales model where you receive a cash offer to sell your home fast and to avoid agent commissions. While there is an incredible convenience factor in play, the iBuying model comes with some drawbacks that we feel are important to know. If you're looking to sell your home fast and looking for Offerpad competitors, this article aims to detail your options. Keep in mind all of these business are rated by better business bureau.

 

Offerpad provides some benefits to its customers. They have a trade-in program. A local moving services at a 50-mile radius. They provide flexibility in moving times, giving owners up to 3 extra days to move.

 

## Things to know about the iBuyer model

 

- Service is available in limited markets

- Not all houses receive an offer

- You will receive a lower offer than you would in a competitive sale.

- You will pay service fees of 6% - 10% (not including repairs)

- Your offer will be contingent on an inspection and you will either need to pay for repairs or accept a revised, lower offer.

 


 

## Additional considerations:

 

​- Offerpad’s services are limited to certain cities in Alabama, Arizona, Florida, Georgia, Nevada, North Carolina, South Carolina and Texas.

- Service is limited to houses that cost less than $600,000 and have no structural problems

- Offerpad can perform required repairs and deduct the cost from the final offer. Offerpad customers have expressed that Offerpad overcharges for repairs.​

 

## Offerpad vs OfferMarket

 

| Comparison | OfferMarket | Offerpad |
| ------------------- | ------------------- | --------------- |
| Service fee | 0% | 6% - 10% |
| Repairs | $0 (as is) | Paid by Seller |
| House type | Any | Selective |
| Closing timeframe | 15 - 45 days | 8 - 30 days |
| Markets | Nationwide | Limited cities in AL, AZ, FL, GA, NV, NC, SC, TX |

 

## At the end of the day, how much money do you receive?

 

| Net Proceed Analysis | OfferMarket | Offerpad |
| -------------------------------- | -------------- | ---------------- |
| Purchase price | $100,000 | $100,000 |
| Service fee | $0 | $7,000* |
| Repairs | $0 | $2,000* |
| Closing costs (transfer tax, recordation) | $1,500 | $1,500* |
| Net proceeds | $98,500 | $89,500 |

 

(*) *estimated*

 

Listing your home with OfferMarket is easy, quick and free. Test the market and see if buyers or investors will start competing over your home. Remember, the best way to get them interested and competing is to list for a low price. They will immediately jump onto a deal. This doesn't mean that you have to sell for that price. You can wait until more offers come and ask them to provide a more competitive offer since you have so many. This is what makes buying and selling with OfferMarket so easy.

## [Ready to sell your house fast and competitively with OfferMarket?](https://www.offermarket.us/sell?ref=blog-offerpad-competitors)

 

### Additional iBuyer comparisons:

 

- [Opendoor Competitors](https://www.offermarket.us/blog/opendoor-competitors)

- [RedfinNow Competitors](https://www.offermarket.us/blog/redfinnow-competitors)

- [Zillow Offers Competitors](https://www.offermarket.us/blog/zillow-offers-competitors)

Offerpad competitors include OfferMarket, Opendoor, Zillow Offers and RedfinNow. Learn how these services compare.

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Offerpad Competitors - OfferMarket

Offerpad Competitors

This is a true story. Two houses with identical floor plans and similar quality finishes were listed in a desirable Baltimore City neighborhood at the same time (Summer 2020), for the same price. One was listed For Sale By Owner, the other was listed by a REALTOR®.​

 

## Home A

 

Home A was beautifully photographed and listed For Sale By Owner (“FSBO”) on Zillow at a carefully researched and attractive price based on recent [comps](https://offermarket.us/real-estate-glossary/comps). The seller created a dedicated website for the property and posted it in the local neighborhood association Facebook group. A buyer found the listing on the Facebook group and scheduled a time to see it with their buyer’s agent. The buyer’s agent missed the appointment and the buyer decided to submit an offer at asking price but requested a 2% seller concession to pay the buyer’s agent ($7,000) which the seller agreed to and went under contract within 1 week of listing. The buyer’s agent, acting in this transaction as nothing more than an expensive document preparer, added nowhere near an appropriate amount of value to justify their commission, and the seller and buyer were both understandably irritated by this. A real estate lawyer could have drafted the docs for $250, saving $6,750 for the seller.

 

## Home B

 

Home B used a listIng agent but insisted on listing 5% higher than the listing agent recommended. The house was slightly less attractive in its finishes and how it photographed. There is no indication the house has been marketed anywhere except the MLS. The house sat on the market for over 120 days before going under contract. If/when the transaction closes we will update this post. We expect the seller will likely have lowered the price to the original recommended range, paid 6% in brokerage fees and have delayed their move-out plans by the length of time it went unsold.

 

## Morals of the story:​

 

- You need to price your property attractively, this is the #1 mistake we see, especially from FSBO sellers. From our research, we estimate that over 90% of FSBO listings are overpriced.
- If you list FSBO, you need to put in a lot of work (comp research, marketing, coordination), price the house attractively, have someone you trust review the Purchase And Sale Agreement and associated disclosure docs.
- If you list with an agent you need to trust their suggested listing price or do your own comp research.
- Listing agents may only leverage MLS instead of other relevant channels, you need an agent that can use other technologies and platforms, especially social media. Make them earn their commission!
- To save money selling without a Realtor, you need to generate buyer awareness and create buyer demand.

 

## [Make buyers compete for your house, sell commission-free on OfferMarket.](https://www.offermarket.us/sell?ref=blog-should-you-sell-your-house-without-a-real-estate-agent)

Two houses with identical floor plans and similar quality finishes were listed in a desirable Baltimore City neighborhood at the same time (Summer 2020), for the same price. One FSBO, the other by a REALTOR®.

Should you sell your house without a real estate agent? - OfferMarket

Should you sell your house without a real estate agent?

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</div>

 
 

## Wholesale Real Estate Growth Mindset

 

At OfferMarket, we like to say: *buy the best and wholesale the rest*

 

This is actually a really important concept. We surveyed several real estate wholesalers and we asked them what's your primary strategy is it strictly to wholesale? Is it to buy up the best properties that you get under contract and wholesale the ones that you know don't fit your fix and flip or rental strategy? Or is it you know some some mix where you're really not sure yet you're just getting started? Ultimately what we found was that the majority of wholesalers are only focused on wholesaling.

 

The reason why we think that that's not the right strategy -- or I should say it's not the best strategy in this industry -- is because if you're buying great properties that you get under contract, you can build wealth. Wealth that is -- obviously if it's a rental -- very passive income. If you're flipping there's opportunity for significantly higher profit than your typical or average assignment deal.

 

It also aligns you with your buyers so if you're thinking about deals first and foremost as, you know:

 

- Do I want to buy this property? 
- Do the numbers make sense as a flip? 
- Do they make sense as a rental? 
- Do I want to hold on to it?
- Do I want to figure out the financing?

 

That puts you in the same mindset of your buyers on your buyers list. So try thinking about whether or not that strategy might work for you. You can de-risk it. You don't need -- if you've never done an investment deal where you actually are on the title, or an LLC that you own is on the title of the property -- you can absolutely reduce the risk of doing your first investment property deal by starting an LLC and bringing in experienced members. Maybe mentors, people who you trust, people who you've gotten to know in the industry, maybe even someone on your buyers list. 

 

You can learn from their experience -- they have a rolodex of contractors and they understand the right way to to handle different situations that may arise through the course of a renovation. 

 

So the concept 'buy the best and wholesale the rest' it's an extremely powerful concept. The best wholesalers in our network use this strategy. It's ultimately how they have a diversified stream of income where they're... 

 

- Building their rental portfolio
- Building their fix and flip volume
- Building their wholesale volume 

 

all based on a deal by deal evaluation. Does it make sense to buy this property or does it make sense to wholesale it to someone for whom it's a better fit for their strategy? 

 

Go on, we challenge you to apply this strategy in your real estate investing business. Let us know how it goes and share the learnings with your friends and colleagues.

 

## We ❤️ Wholesalers

 

OfferMarket is dedicated to helping wholesalers build wealth through real estate. We know wholesaling can be a grind, and we also strongly believe it's your competitive advantage.

 

Whether you're looking to buy your first rental property or your 100th rental property, we are here to help you grow and build wealth through real estate. Get fix & flip loans, DSCR rental loans from [OfferMarket Capital LLC](https://www.offermarket.us/loans), our hard money private lending division. Post your off market assignment contracts on our [investment property marketplace](https://www.offermarket.us/listings). Learn more about [OfferMarket for wholesalers](https://www.offermarket.us/wholesalers).

The best real estate wholesalers use this simple strategy. They buy the best deals for themselves and wholesale the rest. There's more to learn at OfferMarket.

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Buy The Best, Wholesale The Rest | OfferMarket

Buy The Best, Wholesale The Rest

Grow your real estate investing business with the most competitive and transparent private lender for bridge loans (hard money, fix & flip, rehab, ground up construction), DSCR rental loans.

Private Lender for DSCR Loans and Fix & Flip Loans | OfferMarket

Private Lender for DSCR Loans and Fix & Flip Loans

Luxury Redefined Episode 1 features 5505 Stuart Ave, Baltimore, MD 21215. A distressed listing with so much potential.

Luxury Redefined: Episode 1

Off-Market Real Estate Marketplace