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.
As of Summer 2021, Offerpad only operated in 19 markets, mostly in Souther United States:
North Carolina, FL
Dallas-Fort Worth, TX
San Antonio, TX
Las Vegas, NV
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.
Zillow Offers (shut down November 2021)
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.
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.
- 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.
|Service fee||0%||6% - 10%|
|Repairs||$0 (as is)||Paid by Seller|
|Closing timeframe||15 - 45 days||8 - 30 days|
|Markets||Nationwide||Limited cities in AL, AZ, FL, GA, NV, NC, SC, TX|
|Net Proceed Analysis||OfferMarket||Offerpad|
|Closing costs (transfer tax, recordation)||$1,500||$1,500*|
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.
We are all used to paying our rent using cash or check, but this its 2022 and technology has moved f...
Every day is 'We Buy Houses' day at OfferMarket. How does we buy houses work? Learn more....
Deal or no deal? We asked 180 rental property investors if they would do this deal. Rental investmen...