What is Offerpad? | Offerpad vs. Opendoor | Locations | Is Offerpad legit? | How it works | Offerpad fees | Customer reviews of Offerpad | FAQs
What is Offerpad?
Offerpad is an iBuyer, a company that uses tech and automated models to buy, renovate, and resell homes for profit. Like its main competitor, Opendoor, Offerpad alleviates the traditional hassles of selling a home, such as home showings, negotiations with buyers, and uncertain timelines.
Offerpad operates in 25 markets, offers a slightly more flexible closing date window than other iBuyers, and charges 5–6% for its service. That’s similar to what you’d pay in commission if you sold your home with a real estate agent.
However, Offerpad’s cash offers are usually less than what you’d get on the open market. If you’re interested in selling with Offerpad, you should compare its offer to what you could get elsewhere. A service like Clever Offers, for example, shows you what other iBuyers may offer and what you could get with a traditional realtor.
Offerpad at a glance
|🤝 Service fee||5%|
|⏱️ Time to close||As soon as 8 days*|
|📍 Locations||25 markets nationwide|
|🏡 Eligible homes|| |
|⭐ Offerpad reviews||3.7/5 stars|
|🔎 Who is Offerpad best for?||People who want to sell fast and who don’t mind making less than what they’d get with a realtor.|
Offerpad reviews: Takeaways
Offerpad reviews from real customers are generally positive. Many customers have especially good things to say about Offerpad’s customer service. They appreciate that they got to work with an actual person rather than an automated service.
Customers also like that they were able to sell quickly with Offerpad and that the company didn’t spring any unwanted surprises on them.
But there are some Offerpad complaints, mainly focused on sellers getting less for their homes than they thought they were worth. As is common with iBuyers, Offerpad’s offers are generally below what homes can sell for on the open market.
Offerpad vs. the competition
Offerpad vs. Opendoor
Offerpad is the second-largest iBuyer in the U.S. after industry leader Opendoor. Both companies charge 5% for their iBuying services.
After combing through customer reviews and mystery shopping the company, we think that Offerpad is one of the best iBuyer options. While it may be smaller than Opendoor, Offerpad outshines its competition in a few areas.
|📅 Offerpad has a more flexible closing date window|
|Opendoor allows you to choose a date of 14–60 days in advance.|
|Offerpad's window of 8–90 days is much more flexible, giving you up to three months to prepare for the move if you need it.|
|🗣 Offerpad's customer service is more human|
|Opendoor's team sends automated messages to guide you through each step of the process.|
|Offerpad's initial steps are automated, but a representative will reach out to you shortly after you submit your home's information — giving you a single personal contact.|
However, Opendoor has a slightly higher rating from customers and is available in more markets nationwide.
|Opendoor||4.3/5 across 3,322 reviews||47 markets nationwide|
|Offerpad||3.9/5 across 524 reviews||25 markets nationwide|
Offerpad vs. RedfinNow
RedfinNow is among the top three iBuyers, along with Offerpad and Opendoor. It’s currently available in 47 markets across the country.
However, RedfinNow’s hefty fee of 5–13% and handful of mediocre reviews makes it a less attractive option than Offerpad and Opendoor.
» COMPARE: Best iBuyer companies
Still can’t decide what’s right for you? Talk to an agent first. iBuyers are convenient, but you might get a better deal selling with a low commission real estate agent.
Where does Offerpad operate?
Offerpad is available in 25 markets in AL, AZ, CA, CO, FL, GA, IN, KS, MO, NV, NC, OH, SC, TN, TX.
Since Offerpad’s service areas are limited, your home may not qualify for a cash offer. If that’s the case, other iBuyers may be operating near you. For example, Opendoor is currently available in 47 cities nationwide.
What types of homes does Offerpad buy?
Offerpad won’t purchase your home unless it meets the company’s purchase criteria.
Offerpad purchase criteria
|📍 Location||Within one of the 25 markets Offerpad serves|
|🏠 Home types||Single-family residential homes, including condos and townhomes|
|💰 Value||Worth less than $1 million (depending on market)|
|🌳 Lot size||On less than 1 acre of land|
|📆 Year built||Built after 1960|
If your home has problems with the title or significant structural issues like foundation problems, Offerpad won’t purchase it.
Is Offerpad legit?
Yes, Offerpad is legit. It’s the second largest iBuyer in the U.S. by transaction volume.
Offerpad started small in 2015 and raised $260 million in investment funds in 2017.In 2021, Offerpad continued expanding its revenue to $2 billion and grew its total transactions by 58% from two years earlier.
How Offerpad works: Step-by-step
The company has two services for selling your home: Offerpad Express and Offerpad Flex.
Offerpad Express is best if you want to sell quickly. This is the basic service where the company will provide you with an offer and ask you to choose a closing date between 8 and 90 days out. This service costs 5% of the home’s sale price.
Offerpad Flex is a good option if you want the security of a cash offer but can afford to wait a month or two to see how your home fares on the open market. You’ll have 60 days to market your home and still have Offerpad’s bid in your back pocket. This service costs 6% of the home’s sale price and includes the help of a listing agent.
Get a fast offer with Offerpad Express
Offerpad Express is worth it if:
- Selling fast is more important than getting top dollar for your home
- Your home is in relatively good condition and won’t need major repairs
- You want to avoid the hassle of preparing your home for showings
Offerpad Express is the company’s standard iBuying service. To get started, you simply tell Offerpad about your home.
- Request an offer. Begin by submitting information about your home on Offerpad’s website. You’ll provide photos and basic information like your home’s square footage, age, style, appliances, and finishes.
- Receive an initial cash offer within 24 hours. If your home is eligible, Offerpad will provide an initial cash offer, based on a combination of proprietary data and input from Offerpad’s in-house staff. You’ll have four days to decide whether to accept it.
- Sign a contract. To move forward with Offerpad, you’ll have to sign a legally binding agreement — before knowing your final cash offer, which may be reduced by thousands of dollars in repair costs.
- Complete the home inspection. Once you officially accept Offerpad’s initial offer, you’ll schedule an inspection to estimate repair costs. You can complete the repairs yourself (which could add to the timeline) or simply have the cost deducted from your sale price.
- Receive a final cash offer. Once Offerpad sends its updated offer, which will reflect deductions for any repairs, you’ll have just four days to accept. Otherwise, you’ll be on the hook for a 1% cancellation fee. That’s a tight window, especially if you want a second opinion!
- Close the deal. In most states, you can close in as few as 10 days, following a title search and final walk-through. On the day of closing, you’ll sign the sale documents at the office of an attorney or title company to formally transfer the title and complete the sale.
Test the market with Offerpad Flex
Offerpad Flex is worth it if:
- You want to maximize the selling price
- You’re willing to stage the home and make minor repairs to get it ready for market
With Offerpad Flex, you can list your home on the open market for up to 60 days — and still have a guaranteed cash offer in your back pocket.
The 6% charge for Offerpad Flex covers the commission for both the listing and buyer’s agents. That’s comparable to selling with a traditional agent.
An Offerpad agent will help clean and stage the home to get it ready for showings. If you need to make improvements (e.g., new paint, flooring, or appliances), Offerpad will give you an interest-free loan you can pay back at closing.
- Request an offer online. You’ll provide photos of your home and basic information so that Offerpad can give you an offer close to fair market value
- Get the home ready for the market. An Offerpad listing agent will help with things like landscaping, cleaning, and staging. If you want, you can borrow money from Offerpad (interest free!) to make minor renovations to the home.
- Find a buyer in 60 days or take the cash offer. If you receive an offer that you like, you can accept it and Offerpad will help you close on the home. If you want to use Offerpad’s offer, you can choose to accept it any time within 60 days of the initial offer.
If you accept Offerpad’s bid, you’ll sign a purchase agreement and schedule a home inspection. After the inspection, Offerpad will adjust the offer and possibly require home repairs before closing.
Fees for selling to Offerpad
Using Offerpad Express will cost you about 7–10% of the home’s sale price in service fees and closing costs. This is pretty close to the 6–11% you’d pay with a traditional real estate agent.
You might save a little on commission using Offerpad Express, but the cost is very close to what you’d pay using a traditional real estate agent and selling on the open market.
Offerpad vs. a real estate agent
|What you'll pay with Offerpad||What you'll pay with a real estate agent|
|💰 Fees||5–6% service fee||$15,000–18,000||4–6% commission||$12,000–18,000|
|📎 Closing costs||1–3%||$3,000–9,000||1–3%||$3,000–9,000|
|🔨 Repair credits||1–2%||$3,000–6,000||1–2%||$3,000–6,000|
If you want to save on commission while maximizing your profits, our friends at Clever can help! Clever is a free, no-obligation service that connects you with full-service real estate agents from top brokerages.
Most Offerpad reviews from customers are positive, with an average rating of 3.9 out of 5 stars across 524 total reviews.
|Review site||Average rating||Total reviews|
|Better Business Bureau||4.23||258|
We didn’t include Offerpad reviews from Sitejabber because many are from realtors and customers who didn’t complete a transaction.
What customers love about Offerpad
Sellers like Offerpad’s customer service
We found many positive comments from sellers about the company’s accessible reps. Reviewers mention they were happy to talk with an actual human and not an automated service.
Customers like Offerpad’s speed
Offerpad claims it can close quickly, and reviewers’ comments indicate that claim is true. Reviewers praise Offerpad’s fast turnarounds for the initial offer, inspection, and closing.
Customers feel that Offerpad is honest and keeps promises
Many reviewers mention that the service worked as advertised. Comments use language like “no surprises” and “great from start to finish.”
What customers don’t like about Offerpad
Reviews complain about reduced sale prices
Some customers complain about steep reductions in the offer price after inspection. Other reviewers think the repairs were overpriced, further cutting into the sale price.
Overall, we recommend that sellers arm themselves with information about typical repair costs and get a second opinion from an independent inspector. In any sale, this can help you avoid overpaying for repairs or purchasing a home with major defects.
Is Offerpad right for you?
|✅ Pros||❌ Cons|
|No need to clean, declutter, paint, or renovate your home before selling||Pay a service fee of 5% of your sale price for convenience|
|Receive a cash offer within 24 hours||Offers are likely less than your home's fair market value|
|Close in as little as 8 days, or a date of your choosing||Repair deductions can reduce proceeds by thousands, and aren't disclosed until you've signed a contract|
|Free moving service within 50 miles||Little to no room for negotiation over sale price or repair costs|
Offerpad promises a fast, frictionless sale — and it’s true that eligible sellers can close in as little as eight days.
However, Offerpad’s 1% cancellation fee and limited locations make it less competitive than other leading iBuyers, like Opendoor.
What many sellers don’t realize is that homes in competitive markets can still sell fast with a traditional sale. An experienced local agent can discuss pricing and marketing strategies that could help the right buyers find your home quickly.
If selling with an agent is the right choice for your sale, you can save thousands by selling with a low-commission company like Clever Real Estate. Clever pre-negotiates affordable listing fees with full-service agents from top brokers like Keller Williams and RE/MAX. Compared with a typical sale, the average seller who lists with Clever saves thousands!
Frequently asked questions
Is Offerpad legit?
Yes, Offerpad is a legitimate business that buys homes for cash. However, low offer prices and expensive repairs can drain your profits. If you want to sell quickly while still getting the best possible price, a low commission real estate company may be the best choice.
Does Offerpad offer good prices on homes?
When selling to Offerpad, or any iBuyer, you'll receive a lower offer than you likely would when selling on the open market. Your final proceeds depend on two factors: the repairs you'll need to make and Offerpad's risk assessment of your local housing market. Keep in mind that you'll also have to pay service fees of 5%. Learn more about Offerpad fees.
How does Offerpad work?
Offerpad's simple home-buying process involves an online application, initial cash offer, and on-site inspection. However, sellers have only a narrow window to back out after receiving the final offer before facing a 1% cancellation fee. Learn more about how Offerpad works.
Can I negotiate with Offerpad?
No, Offerpad’s offers are non-negotiable. However, if you feel that Offerpad made a mistake in determining the price for your home, you can contact their solutions advisor and request a free price re-evaluation.
Does Offerpad have hidden fees?
Offerpad is transparent about most of its fees. However, it does have a hidden fee of 1% for sellers who cancel after four days of receiving a final cash offer. Learn more about Offerpad’s fees.
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