How to Evaluate Offerpad’s Pros and Cons

Last updated on April 18th, 2024 at 06:18 am

Are you considering using Offerpad to sell your home but unsure if it’s the right choice?

Look no further, as we have compiled a list of the pros and cons of using this service.

Offerpad is an iBuyer that purchases homes directly from homeowners, allowing them to avoid the traditional real estate process.

Offerpad’s Instant Offer service allows homeowners to get a cash offer on their home within 24 hours.  

We will dive into what this service offers, how it works, its target customers, and its fees. 

We’ll also compare it with its competitors like Orchard and Opendoor.

Finally, we’ll help you decide whether it is worth it for you or not. 

What is Offerpad

Offerpad is a real estate company that is changing the way people sell their homes.

  • Offerpad has closed over $1 billion in home sales in 2020.
  • It has completed over 100,000 home sales since its inception in 2015.
  • Offerpad has over 500 employees across the US.

Homeowners no longer need to go through the traditional process of hiring a real estate agent, making repairs, and staging their homes for potential buyers. 

Instead, this business offers a quick and hassle-free solution to selling a home.

Sellers can receive competitive cash offers, won’t have to deal with a traditional home inspection, and choose their own closing date. 

This convenience makes it an attractive option for those who want to avoid the stress of the traditional home selling process.

However, its not all gloom.

A Simple strategy for everyone

Selling a home can be an overwhelming process, but Offerpad aims to simplify it for homeowners.

At its core, it is a real estate company that buys and sells homes directly, eliminating the need for a traditional realtor.

Compared to the typical home selling process, Offerpad’s streamlined approach offers sellers convenience and flexibility. 

With no showings or open houses required, homeowners can sell their property quickly and without the added stress of preparing their home for sale.

How Does Offerpad Make Money

Remember this is a technology real estate company that operates differently from the traditional real estate agent. They typically don’t buy homes on the multiple listing service. 

Instead of charging commission fees to sellers, they make money by buying a house below market value and then selling them at a profit after renovating  [if the house needs it] them. 

This business model allows Offerpad to provide sellers with quick home sales with no showings or open houses required. 

While some may argue that the fees and lower offers are not worth it for all home sellers, a quick sale can be an attractive option for those looking to avoid the traditional home selling process. 

This can be true for homeowners who need the cash fast. 

Offerpads Target Customers

Homeowners who need to sell quickly or don’t want to deal with the traditional home-selling process are the target customers. 

Additionally, customers who want to avoid the costs associated with fixing the house, cleaning, dealing with realtors, and staging may also prefer the streamlined process. 

For those looking for top dollar or greater control over the selling process, working with a traditional real estate agent and listing on the MLS might be a better fit. An agent will run a cma do get the true market value. 

Statistics and Figures

According to statistics, OfferPad has a 96% customer satisfaction rating.

  • It offers a 7-day money back guarantee on all purchases.
  • It acquired 2,856 homes in the 1st quarter of 2022
  • It has an average closing time of 14 days.
  •  OfferPad has a network of over 1,000 home buyers across the United States.
  •  OfferPad has a 97% on-time closing rate.
 

While some customers have reported lowball offers and communication issues with the company, others appreciate the speed at which Offerpad closes deals. 

Offerpad Pros

Offerpad offers several advantages for those looking to sell their home quickly and easily.

  • One of the most significant benefits is the level of convenience it provides. 
  • You don’t have to worry about scheduling showings or cleaning the home before listing it on the market. 
  • It  provides competitive cash offers for homes, which can often be higher than what sellers would receive in traditional real estate transactions. 

This means that sellers can receive an offer for their homes without the added stress and uncertainty of dealing with potential buyers. 

Overall, its user-friendly platform and flexible closing dates make it an attractive option for those in need of a quick sale.

More on convenience and speed

Offerpad’s Instant Offer service allows homeowners to get a cash offer on their home within 24 hours.

This means that you can move on with your life without having to wait months for a buyer or deal with the stress and uncertainty that comes with a traditional sale.

 In addition, it takes care of everything, saving you time and money and allowing for a seamless transition to your new home. 

However, it’s important to note that while Offerpad may be more convenient, it may not always provide the highest possible sale price for your home.

Competitive Cash Offer

Offerpad provides a competitive cash offer for homeowners who are looking to sell their property quickly.

The process is straightforward, and there are no hidden fees or costs associated with it. But there are fees. 

Another benefit of accepting a cash offer is that you can choose your preferred closing date, giving you greater control over the selling process.

  • Although it’s important to note that Offerpad may NOT provide the highest offer compared to traditional real estate agents.
  • There are many factors that can affect the price of properties. 

Additional Services

There are additional services to help sellers prepare their homes for sale, making the process more convenient and streamlined. 

  • Offerpad Flex: With Offerpad Flex, sellers can list their home with a top local agent and can choose to accept a cash offer from Offerpad at any time during the process. 
  • Offerpad Express: You can sell your home directly to Offerpad without having to list it on the open market. 

Offerpad provides a dedicated support team to assist with any questions or concerns throughout the selling process.

While these additional services may come at an extra cost and may not be necessary for all sellers, they can be highly beneficial for those who want to sell their home quickly and efficiently. 

Sellers can focus on other aspects of their lives while leaving the home-selling process in capable hands. 

Offerpad Cons

While Offerpad offers several benefits to homeowners, it’s not without its drawbacks. 

One of the main concerns is limited availability – Offerpad is only available in a few cities across the United States. 

The company charges higher fees compared to traditional real estate agents, which can add up quickly for sellers. 

Another disadvantage is that sellers have limited control over the sale process and may not be able to negotiate as much with Offerpad representatives.

Some homeowners have reported difficulty in getting timely responses from its representatives, which can make the selling process frustrating. 

It’s also important to note that while Offerpad provides a competitive cash offer, it may not provide the highest offer compared to other options available in the market. 

In fact you probably can get more money if you list with a traditional real estate agent. They have their commission fees too, but you will come out ahead. 

So if your a homeowner, don’t be surprised if you get a lowball offer.

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Lower Than Market Value Offers

One of the most significant drawbacks of using Offerpad is that their offers are typically lower than market value. 

This is because they must purchase homes at a discount and then resell them for a profit. 

Keep in mind that convenience and a quick sale can be worth the slightly lower offer for some sellers.

 It’s also possible to negotiate with Offerpad and try to get a better deal. 

Limited Availability

Remember, their services are currently available only in select markets across the United States.

This can be particularly problematic for homeowners who reside outside these areas and are looking to sell their homes quickly. 

The limited availability also means that Offerpad may not have as much competition in certain markets, potentially leading to lower offers for homeowners.

However, it’s worth noting that this company is continually expanding its reach and may become more widely available in the future.

What are the fees associated with Offerpad

When it comes to fees, Offerpad charges a service fee that typically ranges from 6-10% of the home’s sale price. 

While some may balk at the service fee, it could be worth it for those who need to sell quickly or want to avoid the more traditional methods of selling a home. 

Just like in traditional real estate transactions, the seller is responsible for certain customary closing costs—including title, escrow, and/or settlement fees, HOA fees, and prorated property taxes.

Repair Costs and Deductions

Homeowners should be aware of the potential repair costs and deductions associated with selling their home.

Remember, it charges a service fee that ranges from 6% to 10% of the sale price.

Additional repair deductions may be assessed based on the condition of the home.

While Offerpad’s repair costs are generally lower than traditional real estate commissions, some homeowners may prefer to handle repairs themselves in order to save money and increase their net proceeds from the sale. 

Other Hidden Costs

While Offerpad may not charge traditional seller fees, homeowners should be aware of potential hidden costs. 

For example, if the home is not in good condition , there may be a repair or cleaning fee. 

There may be additional fees for extended closing periods or changing the move-out date. 

It’s important to carefully review the terms and conditions to fully understand any potential costs. 

While some costs may be unavoidable, being aware of them can help homeowners make an informed decision about whether or not to use Offerpad for their home sale.

Offerpad vs Competitors

There are other alternatives and many companies pay cash for houses in Arlington. 

Other companies like Zillow Offers and Opendoor offer similar services with potentially lower fees or wider availability. 

While they all provide a quick  way to sell your home with a cash offer, fees may be higher than those of traditional real estate agents.

Comparison with Orchard

While both companies offer similar services as iBuyers, their availability and additional offerings may differ. 

Offerpad has a wider service area than Orchard, making it more accessible for homeowners looking to sell quickly. 

However, Orchard offers unique services such as temporary housing and a dedicated support team for sellers, which may be appealing to some individuals. 

Comparison with Opendoor

When comparing Offerpad with Opendoor, it’s important to consider their similarities and differences. 

Offerpad may offer slightly better pricing options for sellers compared to Opendoor. 

On the other hand, Opendoor has a larger market share and operates in more cities than Offerpad. 

It’s also worth noting that Opendoor has a more established reputation in the market.  

Researching and comparing multiple options can help you make an informed decision about which iBuyer service is right for you.

Are Ibuyers Worth It

For some people, yes.  For others, No.

But they will get less for their home.

Their streamlined process and competitive cash offers make it an attractive option for homeowners looking to avoid the traditional real estate market. 

While the service fee may be higher than what you would pay for a traditional real estate agent, there are no repair or cleaning costs involved. 

Check out Offerpad’s BBB rating here. 

Here are some reviews. 

When to Choose Offerpad

When it comes to choosing between Offerpad and traditional real estate agents, timing is an important factor. 

The company offers competitive cash offers that can provide much-needed relief in urgent situations. 

However, it’s important to keep in mind that Offerpad may not always offer the highest price for your home. 

If you have specific needs or preferences for your sale, such as negotiating closing costs, a traditional real estate agent may be the better option. 

When to Choose a Traditional Real Estate Agent

Choosing a traditional real estate agent can be a better option in certain situations. 

  • If you have the luxury of time and want to get the maximum value for your property, then an agent could be your best bet. 

They have the expertise to price your home right and market it effectively to potential buyers. 

  • An agent can also provide personalized guidance throughout the selling process, from helping you stage your home to negotiating terms with buyers.
  • A realtor will also provide top tier customer service and hand walk you through the paperwork.

However, if you’re in a hurry to sell or want to avoid the stress of showings and negotiations, Offerpad may be worth considering. 

 So it all comes down to your specific needs and priorities – weigh your options carefully before making a decision.

What are the eligibility requirements for Offerpad

  1.  Single-family homes, townhomes, condos, and duplexes typically qualify.
  2. Homes must be in one of the areas where Offerpad is currently operating.
  3. The property must not have unpermitted additions or significant foundation issues.
  4. Homes must also be owner-occupied or vacant at the time of sale.

Final Thoughts

Offerpad is a real estate technology company that provides a convenient, fast home buying and selling experience.

While it offers a convenient and speedy way to sell your home, its offers may be lower than market value and come with additional fees. 

However, if you’re looking for a higher sale price and willing to put in some extra effort, working with a traditional real estate agent or cash home buyers in Fort Worth may be the better option.

Frequently Asked Questions

The company makes money by buying homes from homeowners at a discounted price, making repairs and renovations if necessary, and then selling the homes on the open market for a profit.

Yes, you can negotiate with Offerpad. When you receive an offer from Offerpad to buy your home, you have the option to accept the offer, reject it, or negotiate. Most people should negotiate, Offerpad is like any other buyer, they probably leave room for negotiation!

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