Both Opendoor and Offerpad make selling your home fast and easy, but you’ll get less money than market value. The most important difference is that Opendoor is available in more markets, but Offerpad has free perks like local moves and extended stays after closing.
If you decide to sell to either iBuyer, it’s probably going to look a lot different now than it did during the pandemic. Because home prices aren’t increasing as quickly, both iBuyers are buying fewer homes and paying less for each home.
Before selling to an iBuyer, you should compare multiple offers. You should also have a good idea of how much you could sell for with an agent.
A simple way to compare offers is with a free service like Clever Offers. Clever gathers competing offers on your behalf from reputable iBuyers and investors. You also get a professional estimate of your home value — so you can weigh offers against your potential listing price.
Offerpad vs. Opendoor: Which is better?
Which iBuyer is better depends on your priorities. Here’s a comparison of the most important factors.
|✅ Offers are below market value but similar to Opendoor’s.
|✅ Offers have decreased since 2022 and are now similar to Offerpad’s.
|✅ Offerpad charges a 5% service fee. Extended stays after closing are free, but there’s a 1% cancellation fee.
|✅ Opendoor’s service fee is 5%, same as Offerpad’s. There’s a daily fee for staying after closing (usually $100–400 per day), but no cancellation fee.
|✅ Offerpad has better perks, like free 3-day extended stays and cash advances for home renovations.
|❌ Opendoor has limited perks aside from a 14-day extended stay, which costs extra.
|❌ Some reviewers complain about Offerpad’s customer service.
|✅ Opendoor is usually easy to reach and responsive to customers.
|❌ Offerpad is only available in 14 states, but it buys more property types.
|✅ Opendoor is available in over twice as many markets as Offerpad.
|❌ Buyers report high prices and shoddy repairs.
|❌ Buyers complain about high prices and poor repairs.
Both iBuyers make similar offers
Since the real estate market slowed in 2022, Opendoor and Offerpad have become more conservative with the number of properties they are purchasing. Both companies offer less than what you could get on the open market with a realtor. And both tend to lower their offers after an inspection.
You can get an offer from Opendoor and Offerpad for free, so there’s no harm in comparing offers from both iBuyers. As one Reddit user noted, “[Opendoor is] not offering amazing prices the way they used to, but you can consider their offer a floor price for what you can exit at.”
Opendoor and Offerpad have similar fees
However, Offerpad charges a 1% cancellation fee if you back out before closing, whereas canceling is free with Opendoor. On the other hand, Offerpad’s 3-day extended stay after closing is free, but Opendoor’s 17-day extended stay program comes with a daily fee (usually around $100–400 per day).
The other big expense is repairs, but it’s impossible to predict which company will charge less for your home’s repairs.
Opendoor requires you to use one of its contractors, which can make it hard to know if you get overcharged. Offerpad claims you can hire a contractor yourself, which might help you control repair costs. However, Offerpad doesn’t always honor that promise and doesn’t always provide an itemized list of required repairs.
As one customer said, “Offerpad requested $40k in repairs but refused to provide a list of needed repairs to justify this expense. When I inquired further [the Offerpad representative] advised that it was an overall estimate, not tied to any specific repair and that I did not have the option to make repairs myself as indicated on the website.”
Offerpad offers better perks
Offerpad has better perks and additional services than Opendoor. With Offerpad, you can get a free move within 50 miles and a free 3-day stay after closing. Opendoor has an extended stay option of up to 17 days, but you have to pay a daily market rate.
If you list with an Offerpad agent, the company offers an interest-free loan to renovate your home and increase its appeal to buyers. You can use the loan for new paint, floors, countertops, appliances, fixtures, and more.
Service quality is better with Opendoor
Both companies have similar online review ratings, and both get complaints about low offers and poor repair jobs. But Opendoor gets somewhat better reviews for its service quality.
Opendoor is easier to reach, and Offerpad sometimes tells customers things that seem to contradict info on its website.
For example, one Opendoor customer said, “Communication was top-notch! Our Experience Partner was always available by phone, and promptly returned emails.”
Opendoor is more widely available
Opendoor is the largest iBuyer in the country and operates in over twice as many markets as Offerpad.
Both companies also only buy homes that are move-in ready or close to it. However, Opendoor buys homes built as long ago as 1930, whereas Offerpad’s cutoff is 1950. But Offerpad buys condos and homes in gated communities and age-restricted communities. Opendoor only considers these types of properties in certain areas.
Buyers have similar issues with both iBuyers
Buyers have similar problems with Opendoor and Offerpad, like poor repairs that mask deeper issues.
Both companies also sometimes overprice homes, and it’s hard to negotiate the price down. Unlike individual buyers, iBuyers can usually afford to sit on their properties until they get an offer they like.
Realtor Barry Richards said this about Opendoor houses for sale:
“We see a lot of them that seemed to be really overpriced. And they seem to just have a system of dropping the price until they hit the sweet spot. That is to say, when they get to that price, that’s what they sell it for. They don’t tend to negotiate much on whatever current price they have.”
Offerpad vs. Opendoor: How they work
iBuying is Offerpad’s and Opendoor’s core product, but these companies offer other services as well.
Both companies have traditional listing services with real estate agents, sell homes directly to buyers, and offer perks for bundling services. Offerpad also expanded into home loans, and Opendoor has an in-house title insurance company.
Selling with Offerpad
Offerpad has three options for sellers: Sell to Offerpad, List with Offerpad, and Sell & Buy.
Buying with Offerpad
There’s only one way to buy a home with Offerpad, and it’s similar to buying the traditional way.
Selling with Opendoor
Opendoor has several options for sellers, ranging from iBuying to a traditional sale with a realtor.
Buying with Opendoor
You can buy similar to the traditional way, or, if you live in Austin, Dallas–Fort Worth, or Houston, you can buy off-market through Opendoor Exclusives.
Offers and fees
How much do Offerpad and Opendoor pay for homes?
Generally, Opendoor and Offerpad pay more than traditional cash home buyers, but their offers are almost always below what a realtor can get you on the open market. Both iBuyers may reduce your offer if they decide your home needs repairs or the market has changed.
Opendoor’s median purchase price used to be more than Offerpad’s. But now in 2024, its offers are closer to Offerpad’s.
What fees do Offerpad and Opendoor charge?
|Service fee (cash offer option)
|Commission fee (listing option)
|Estimated closing costs
|Estimated repair costs
|Based on inspection
|Based on inspection
If you take Offerpad’s cash offer, you pay a 5% service fee. If you list with an Offerpad agent, you pay realtor commission, which varies by market.
Repair costs vary a lot and are impossible to predict. Offerpad lets you hire your own contractor to complete repairs, which may help you avoid getting overcharged. But some customers say Offerpad required them to use its contractor instead.
If you need to stay in your home after closing, Offerpad lets you stay up to three days for free.
Opendoor charges a 5% service fee for cash offers. If you list with an Opendoor agent through Offer Lock, you’ll have to pay realtor commission, which varies depending on the market and individual agent. Total agent commission is traditionally around 6%.
Repair costs are based on an inspection and can vary a lot. Jesse Zappia sold to Opendoor and paid $5,700 for repairs on a $566,000 sale. But he told us that repair costs are “kind of a black box.” Opendoor doesn’t explain much about how it calculates repair costs, and it doesn’t give you the option of hiring your own contractor.
Opendoor lets you stay in your home up to 17 days after closing, but you have to pay a daily market rate, which is usually around $100–400 per day. You’ll also have to pay a $2,000 security deposit.
|4/5 (2,758 reviews)
|4.2/5 (3,649 reviews)
Offerpad reviews online are generally positive. However, recent reviews are more negative, suggesting a possible downward trend in quality.
Customers are happy with Offerpad’s convenience compared to selling with a realtor. As this seller noted:
We were a bit hesitant to use Offerpad because we always used Realtors before. Everything could not have gone more smoothly! … This process went faster than selling the home with a realtor.”
The best reviews are typically for List with Offerpad, which sellers use to list their home with an Offerpad agent. Offerpad’s agents generally get good marks, with this customer’s review being typical:
No other realtor I contacted would do as much as [Offerpad’s] did to get my home ready. His valuation of my property came within 1k of it’s true appraised value.”
However, sellers and buyers often claimed that Offerpad made poor repairs. This buyer’s complaint is similar to many others we found:
The plumbing in the kitchen is not done properly and certainly not by a licensed plumber. New cabinet doors were put on old cabinets and they are literally falling off or not aligned properly because of poor quality handling.”
Opendoor reviews are generally positive. However, like Offerpad, it has recently received more negative reviews than in the past, suggesting that customer satisfaction is declining.
Positive reviews note Opendoor’s easy process and excellent customer service. These factors especially helped sellers in unique circumstances, such as this individual who sold an inherited property from out of state:
Using their services was the BEST decision for me. I was able to do everything virtually and if I needed to speak with anyone they were only a phone call or email away.”
Speed was also a positive factor for many reviewers, with this seller’s experience being fairly typical:
The process was very easy to go through, and the closing on the sale occurred two weeks after signing the offer letter. I highly recommend Opendoor if you’re not interested in the longer process of going the traditional route.”
However, like Offerpad, Opendoor has a lot of complaints about the quality of its repairs. This customer’s experience is just one example of many:
They do the absolute minimum amount of work at the cheapest possible price in order to sell a house. The quality of workmanship in the home we purchased is horrible.”
Several complaints also claim that Opendoor canceled contracts, leaving sellers relying on a quick sale in difficult situations.
For example, Nashville realtor Rebecca Richards told us about a client who sold to Opendoor only to have the company cancel their contract as they packed to move. Fortunately, the sellers got Opendoor to buy the house by agreeing to a $5,000 cut in the sale price. As Richards said:
It worked out, but I felt like my clients were jerked around.”
|AZ, CO, FL, GA, IL, IN, KS, MO, NV, NC, OH, SC, TN, TX
|AL, AZ, CA, CO, DC, FL, GA, ID, IN, KS, MA, MI, MN, MO, NC, NM, NV, NJ, NY, OH, OK, OR, SC, TN, TX, UT, VA
Where do Offerpad and Opendoor buy homes?
Offerpad is available in 24 markets across 14 states, which is slightly fewer markets than it had in the past. In 2023, the company increased its home purchases, but hasn’t announced plans to expand right away. Not all of its services are available in every state, including Offerpad Mortgage and bundled discounts.
Opendoor is available in 54 markets across 26 states and Washington, DC, making it the largest iBuyer in the country. Some services, such as Offer Lock, are only available in select areas.
What types of homes do Offerpad and Opendoor buy?
Offerpad purchase criteria
To sell to Offerpad, your home needs to be:
- In good condition
- Built after 1950
- A single-family home, including a townhome or condo
- Valued under $1 million
- On a lot no bigger than 1 acre
- With clear ownership
- Vacant on the close date
Offerpad also purchases single-family homes in gated and age-restricted communities. However, in age-restricted communities, it typically only buys homes worth up to $350,000.
Offerpad doesn’t buy properties that are mobile, manufactured, or prefabricated or that have significant foundation or structural issues.
Opendoor purchase criteria
To sell to Opendoor, your home needs to be:
- In good condition
- Built after 1930
- A single-family home or townhome (condos and duplexes are eligible in some areas)
- Valued under $1.4 million (most are $100,000–600,000)
- On a lot under 2 acres (1 or 1.5 acres in some areas)
- With clear ownership
- Owner-occupied or vacant at closing
Opendoor also buys single-family homes in age-restricted and gated communities, but only in certain areas. It also buys homes with solar panels if the panels are owned outright.
Opendoor won’t buy homes that:
- Are short sales or in foreclosure
- Have additions without proper permits
- Are in flood zones
- Have foundation or structural issues
- Have septic systems or wells
- Are built with dated materials
- Are damaged by fires, floods, or other natural disasters
Alternatives to using Offerpad or Opendoor
iBuyers struggled since 2022 because of rising interest rates and a slowing housing market. Offerpad and Opendoor survived by dramatically curtailing their purchases and downsizing their workforce.
If iBuyers are available in your area and you need to sell fast, they’re certainly worth considering. But you might have a harder time qualifying for an offer now than you would have when the businesses were growing rapidly. If that’s the case, here are some good alternatives.
Sell to a cash buyer
Cash buyers are a good alternative if you want to sell quickly. Like iBuyers, they can close in less than a month. They usually make lower offers, but they buy homes in poor condition as is.
A cash buyer is a much better option than an iBuyer if you don’t want to pay for necessary repairs. And because cash buyers operate in a lot more markets than iBuyers do, they’re sometimes the best available all-cash option.
Cash buyers are also more open to negotiating than iBuyers are and some can offer creative solutions to unique selling solutions. For example, some cash buyers offer novation agreements where instead of buying your house outright, the buyer will renovate your house and list it on the open market. The repairs are then deducted from the final sale and you and the cash buyer split the proceeds of the sale.
However, there are a lot of cash home buyers to choose from, each with a different investing strategy. While most are reputable, there are some that are inexperienced or try to take advantage of sellers in difficult situations. You’ll have to thoroughly vet any cash buyer you’re considering. Alternatively, consider working with a service, like Clever Offers or Homelight Simple Sale, that has its own network of pre-vetted buyers.
Get an equity advance through a home trade-in service
Home trade-in services, like Knock and Orchard, allow you to buy your next house before you sell your current one. Unlike iBuyers, these companies advance you a bridge loan for the down payment on your new home by tapping into the equity of your existing home. You pay off the loan when your original house sells.
Trade-in services solve a common problem that many buyers have: only being able to afford a new home once they sell their old one. Plus, with a bridge loan, you have the cash to make your offers on homes more enticing. Trade-in services also ensure that you don’t pay two mortgages at once.
Most trade-in services have a guaranteed cash offer. They buy your house if it doesn’t sell on the open market within a certain number of days, but the offer will likely be much less than your home’s value.
Trade-in services also come with brokerage fees, service or “program” fees, and other charges related to your bridge loan. The total costs can be far higher than traditional real estate transactions.
List on the MLS with an iBuyer’s offer as backup
Selling on the open market with a realtor is almost always going to get you top dollar for your home. Even if timing is your main concern, you can find a realtor who can solicit fast cash offers or adjust their marketing strategy to your timeline. Traditional realtor commission is 5–6%, but you can use a discount brokerage to bring those fees down to 3.5–5%.
A realtor can also provide a free home valuation, so you know how your home’s market value compares to iBuyers’ offers. If you still can’t sell by a certain date, you can use an iBuyer as a backup.
As realtor Barry Richards notes, “You’re going to get the most money when you have people competing with each other, and that’s going to happen when you list on the MLS. But you can use that iBuyer’s offer as a baseline.”
Using a realtor first and an iBuyer as a backup is more likely to get you a fair price for your home, while still getting the convenience of an iBuyer if you need it. The one drawback is that if the market changes suddenly, the final price an iBuyer offers might be lower than its initial one.