Offerpad is the second largest iBuying company in America, offering almost instant cash offers for homes. In just 24 hours, they give you a preliminary cash offer using advanced machine learning technology and human expertise.
But for this speed, you have to compromise on price. You may get just 70% to 80% of your home’s Fair Market Value. If you’re selling your home as is, the repair and closing costs are also deducted from their final offer.
Moreover, should you change your mind and back out from the deal too close to escrow, you have to pay an additional cancelation fee.
Given these drawbacks, is an Offerpad cash offer in your best interest? Let’s look at Offerpad reviews and their pros and cons to find out.
Key Takeaways?
- Pros: Offerpad’s 8-day closing timeline can give you cash for your home quickly. Further, their easy selling process takes away the stress of a traditional home sale. You don’t have to worry about either repairing or staging your home.
- Cons: To get a cash offer from Offerpad, your home needs to meet their strict eligibility criteria. Further, their limited coverage and 1% cancellation fee make Offerpad less appealing.
- 👉 Our Take: We don’t recomment Offerpad because they give you just 70% to 80% of what your home is worth. If you want top dollar for your property, an MLS listing with Houzeo is the way forward. Compare Offerpad vs. Houzeo.
What is Offerpad?
Offerpad LLC is an iBuyer that works like a traditional home flipper. They purchase homes by paying 70% to 80% of their FMV, fixing them up, and selling them for a profit.
This iBuyer has strict purchase criteria that limit the number of homes they buy. They also claim to close on a property in just 8 days, unlike Offerpad competitors who close in 14 days.
Offerpad uses advanced technology and comprehensive data analytics to come up with offers. However, they do not depend entirely on their proprietary algorithms. Real estate experts vet the cash offers generated by the technology before extending them to sellers.
This could be why Offerpad has never paid above market value for the home they purchased.
FASTEST CLOSING
Offerpad
- Service Fee: 6%
- Close in 10 days
4.6/5
(out of 165 reviews)
4.6/5
(out of 165 reviews)Offerpad has the fastest closing among iBuyers. Based on housing market trends, their patented evaluation tool will generate an initial offer for your home.
They also have a “List on MLS” package where an Offerpad representative will list your property on the open market.
- Service Fee: 6% of Home Sale Price
- Typical Offer: 70% to 80% of Fair Market Value (FMV)
- Eligible Properties: Offerpad offers cash for houses built after 1960, with a maximum lot size of 1 acre and a max valuation of up to 1M. Homes with significant foundational issues or rundown properties are not eligible. Check this out to know more about offerpad criteria.
- Closing Offer Terms: When you sell to Offerpad, you can close as early as 7 days. The initial offer terms may change after the inspection of your house.
» Offerpad Reviews: Is the Fast Closing Schedule Worth the Tradeoff?
- Lightning Fast Closing: With Offerpad’s cash-for-house offer, you can close your property in seven days.
- No Need to Fix the Property: When you sell your house for cash, you don’t incur upfront costs to fix, prepare or stage the house.
- Extended Checkout: Long-term stay option for house sellers who want to push their closing date after acceptance.
- Broad Coverage: Offerpad buys houses for cash in 27 markets- Birmingham, Phoenix, Denver, Fort Collins, Fort Myers, Jacksonville, Atlanta, Kansas City, etc.
» What is Offerpad? Check this out to know more about them.
In our research, we found some issues associated with Offerpad Real Estate.
- Lowball Cash Offer: Offerpad’s cash offer is below market value, typically around 60% to 80% of the fair market value.
- High Service Fees: The Offerpad cash offer is readjusted based on repairs identified by the home inspector. The service fees can go up to 13% of the home sale price.
- Offerpad Cancellation Fee – 1%: If you are only 4 days out of your closing date and you decide not to accept Offerpad’s cash offer, Offerpad charges a cancellation fee of 1% of the home sale price.
- Inflated Repair Costs: Offerpad’s final cash offer is calculated after deducting home repair and seller closing costs. The difference between Offerpad’s initial offer and the final offer is huge.
» Offerpad Review: Read the in-depth review of Offerpad.
Offerpad has a 4.6 out of 5 stars rating on TrustPilot.
» Offerpad Review: Check out customer reviews of Offerpad.
Is Offerpad Legit?
Yes, this iBuyer is a legit company founded in 2015 by Brian Bair. Offerpad headquarters is located in Phoenix, Arizona.
Following in the footsteps of Opendoor, this iBuyer launched Offerpad Express to provide home sellers with quick cash for their homes. In 2022, they purchased 9,034 homes and sold over 10,000 properties.
Where is Offerpad Available?
Unlike other Offerpad competitors, this iBuyer has a broader service area. They pay cash for houses in 1000+ cities across 15 states.
While 1,000+ cities does seem like good coverage, many of them are in Florida and Texas. So, homeowners in the rest of the country may find it difficult to avail of their home-selling services.
Offerpad’s restricted coverage may force you to turn to the open market. If that is the case, an MLS listing on Houzeo.com is in your best interest. With near nationwide coverage, the listing can be on your local MLS within 24-48 hours.
» How to List on MLS: Here’s everything you need to know about listing your home on the MLS.
What Type of Houses Does Offerpad Buy?
To qualify for an Offerpad offer, your home must meet their strict criteria:
- Home Type: Offerpad buys single-family homes, condos, and townhomes.
- Year Built: This iBuyer only accepts homes constructed after 1960.
- Valuation: Offerpad.com considers homes valued only up to $1 million.
- Maximum Lot Size: The property cannot exceed 1 acre.
If your home does not meet the criteria mentioned above or your property has title issues, Offerpad will not buy your house. Many Offerpad reviews highlight how home sellers have faced trouble due to these inflexible terms.
How Does Offerpad Work?
Offerpad Express provides home sellers with a cash offer in 24 hours. Let’s see how Offerpad works:
- Request an Offer: You must fill out a 3-minute form with all your property details on the Offerpad website. You can also attach photos of your property, but that is optional.
- Evaluate Your Cash Offer: In 24 hours, you will receive a preliminary cash offer for your home. This offer has been generated by Offerpad’s proprietary algorithms and vetted by their experts.
- Sign the Purchase Agreement: You have 4 days to accept or reject Offerpad’s offer. Remember that when you take the offer, you sign a contract without knowing the final offer price. In contrast, when you sell to Opendoor, you sign a contract after you get the final offer.
- Complete the Inspection: Once you accept Offerpad’s offer, they will schedule a house inspection. The representative will look for signs of water damage, structural problems, and general wear and tear. These factors will affect the final cash offer.
- Receive the Final Cash Offer: You can choose to deduct the repair costs from the final cash offer or hire a contractor independently to make the repairs. Further, you only have 4 days to decide. If you withdraw from the sale, you must pay a 1% cancellation fee.
You can choose a closing date up to 60 days out. If you need more time, you can use their Extended Stay Program. With this facility, you can move out 3 days after your closing date at no extra charge.
Selling to Offerpad Flex
Offerpad allows you to explore the open market while having the security of a guaranteed cash offer. Most of the home-selling process remains the same as Offerpad Express. However, for an MLS listing, you will need to stage your home.
Offerpad loans you funds so that you can paint your home, redo the flooring, and update the fixtures. These upgrades will help you get a better offer.
You can also avail of Offerpad’s free services like:
- Deep house cleaning
- Handyman services
- Carpet cleaning
- Landscape cleanup
- Pool services
If Offerpad’s listing doesn’t fetch you a reasonable price for your home, you can opt for their cash offer. However, you have only 60 days to decide.
- 📢 Things You Should Know: Offerpad Flex requires you to work with a listing agent who is affiliated with them. They also provide services like 3D tours, real estate photography, and other marketing features on an a la carte basis.
Can I Back out of Selling My House Before Closing?
Yes. You can cancel the sale if you change your mind after signing the purchase agreement.
However, if you withdraw from the sale 4 days before escrow closes, you have to pay the Offerpad cancellation fee equal to 1% of their offer price. Neither party pays a penalty if the iBuyer decides to back out of the agreement.
Does Offerpad Pay Market Value?
No. Offerpad does not pay 100% of your home’s Fair Market Value. In fact, they have lowered their cash offers to scrape through the growing buyer’s market.
Offerpad’s initial offer is usually 70% to 80% of a home’s FMV. This reduces after the home inspection.
Their final offer takes into account the 6% Offerpad service charge, repair expenses, and closing costs. So, ultimately your home’s worth may be reduced drastically.
You can hire a contractor to take care of all the repairs yourself. However, if your property needs extensive repairs, you have no choice but to sell it as is and have the costs deducted from your final cash offer.
💸 Why Give Away Your Hard-Earned Equity? 💸
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Offerpad Fees
Offerpad acts like a house flipper, and they earn profits in a similar way too. They buy homes at discounted prices and sell them for a profit.
Additionally, Offerpad fees include a 6% service charge that covers utility expenses and taxes until the home is sold to another buyer. You also have to pay the seller closing costs, about 1% to 3% of the offer price.
If you sell your home as is, the repair costs amount to 1% to 2%.
Ultimately, you end up paying an additional fee of 9% to 12% to Offerpad.
- 🚩 Offerpad Hidden Fees: While Offerpad doesn’t have any hidden fees, they do have a 1% cancelation fee. This fee isn’t explicitly mentioned on their website.
Offerpad vs. Houzeo
Selling to Offerpad seems quick and easy. But you pay for this convenience by selling your home at a lower price.
On the other hand, an MLS listing with Houzeo’s Gold plan equips you with advanced technology to call for the highest and best offers. You can also counter offers to help you get a deal closer to your expectations.
| Offerpad | Houzeo | |
|---|---|---|
| Sale Price | 70% to 80% of FMV | Up to 100% of FMV |
| Customer Rating | 4.0 stars (174 reviews) | 4.9 stars (1,105 reviews) |
| Coverage | 15 states* | 47 states + Washington D.C. |
| Fees/Commissions | 6% Service Fee | $399 |
| Cancelation Fee | ✅ | ❌ |
| Scope for Negotiation | ❌ | ✅ |
| 100% Online Process | ❌ | ✅ |
only in select cities*
» Houzeo Reviews: Still not convinced? Read what customers have to say about Houzeo.
Additional Offerpad Services
Here are some additional services Offerpad provides, depending on your location.
- Offerpad Brokerage: You can work with an Offerpad agent to list your home on the MLS. Like a traditional brokerage, you will receive all the assistance you need with Offerpad realty.
- Offerpad Home Loans: You can finance your new home with the Offerpad mortgage lending solution. You get step-by-step assistance right from the application process till closing. You can use this loan to finance single-family homes, residential units, townhomes, etc.
Offerpad.com Reviews
Offerpad has a 4 out of 5-star rating on Trustpilot based on 174 reviews.
Most reviews praise their quick cash offers and flexibility in closing timelines. However, Offerpad complaints highlight their lowball cash offers and high service fees.
✅ Juan was happy with Offerpad’s hassle-free process and competitive cash offer.
The process was very streamlined and polished. Greg and Kim kept us up to date every step of the way as well as addressed any concerns we had. Offerpad gave us a very competitive offer and we were able to move out of our home as soon as we were ready without the hassle of people coming through our home or having to hire someone to “stage” our home.
Source: Trustpilot
✅ Lisa was grateful for the flexibility and understanding showed by Offerpad’s team when selling her house.
I would recommend Offerpad to anyone looking to sell their home. The experience for me and my family was great. I was dealing with a lot of personal issues and they completely understood and worked with us. It was definitely the way to go.
Source: Google
❌ John was furious because Offerpad reduced his final cash offer drastically.
They WILL lower their offer by 25,000!!! They make good sounding promises in the beginning and when you are close to closing they will start finding many reasons to cut the price by more then half !! Terrible terrible terrible service
Source: Trustpilot
❌ Brent, a veteran who served the country for 8 years, was furious with Offerpad’s deceitful practices.
They canceled the contract due to foundation issues, they sent a foundation guy over who inspected and said it passed! Offerpad lied to us from the beginning to the end! They did not use the foundation professional evaluation! Glad I served 8 yrs to protect peoples rights and beliefs just to have mine disregarded! Be wary of these people they have put my family and I in a bad position!
Source: Google
Offerpad Pros and Cons
Companies like Offerpad help sellers who need to sell their homes quickly. However, their pros and cons paint a clearer picture:
✅ Offerpad.com Pros:
iBuyers have certain advantages over traditional home-selling processes. Let’s see how Offerpad matches up to these expectations:
- Instant Cash Offer: You receive a preliminary cash offer within 24 hours of submitting your property information.
- Buy As Is Homes: If your home needs minimal repairs, Offerpad can purchase your home as-is. This way, you can save on upfront costs.
- Flexible Closing Timeline: Offerpad allows you to choose a closing date up to 60 days out. If you need more time, you can extend your closing date by 3 additional days.
- Free Local Move: If your new home is within a 50-mile radius of your old house, Offerpad will help you move for free. But you will need to pack your belongings yourself.
⛔ Offerpad.com Cons:
Offerpad complaints reflect the following disadvantages of the company:
- Lowball Cash Offer: Offerpad’s final cash offer may be below the property’s Fair Market Value, around 70% to 80%.
- High Additional Fees: You must pay a 6% service fee, repair, and closing costs when selling your house to Offerpad. This reduces the total cash you get in hand.
- Unprofessional Customer Service: Many reviews mention that Offerpad customer service agents have a condescending demeanor. They don’t guide or advise sellers who are selling their homes to them.
- Enter Into a Contract Before Knowing the Final Selling Price: Offerpad requires you to sign a legal contract if you accept their initial offer. Since the company lowers the offer after the home assessment, you don’t know the final price.
- 1% Cancelation Fee: If you back out from the transaction 4 days before closing, you must pay a 1% cancelation fee. The Offerpad cancellation policy may be frustrating as you’re paying the company after rejecting their lowball offer.
Best Offerpad Alternatives
Even if you want to sell your house fast for cash, look for some alternatives better than Offerpad. We’ve listed three below:
- Houzeo: Houzeo is one of the best FSBO websites in America that lets you list your home on the MLS within 24 to 48 hours. Here, multiple national and local cash home buyers make offers on your property, driving up its price. You can even get 100% of your home’s FMV.
- Opendoor: Opendoor is the largest iBuyer in America, extending cash offers for homes needing minimal repairs. They generally pay 70% to 80% of your home’s FMV but deduct a 5% service fee, closing costs, and repair costs from the offer.
- HomeVestors: HomeVestors is a cash home buyer franchise offering 50% to 70% of the home’s FMV. However, they may deduct repair costs at closing. Further, since each office is independently owned, you won’t get consistent service across the country.
“We Buy Houses for Cash” Companies Near Me
There are other “We Buy Houses As Is” companies in the market. You can request an offer from multiple cash companies and pick the one that suits you the best.
Is Offerpad Worth It?
No, we don’t recommend Offerpad for your property. Their 6% service charge, repair costs, and closing costs add up to almost a 9% to 12% additional fee that you have to shoulder. This may reduce your home’s worth drastically.
Additionally, their limited coverage and cancelation fee may force sellers to think twice before approaching them.
The open market is a much better alternative to get 100% of your home’s value. A flat fee MLS service like Houzeo can open doors to even a top-dollar cash offer for your home.
Frequently Asked Questions About Offerpad Reviews
1. Does Offerpad negotiate with buyers?
No, Offerpad's first offer is a take-it-or-leave-it proposition. However, in the event of an error, you can request a revaluation.
2. Who is better Offerpad or Opendoor?
Opendoor is better than Offerpad in terms of geographical coverage, overall customer reviews, and services.
3. Can you negotiate with Offerpad on repairs?
No, Offerpad does not negotiate unless there are major discrepancies, You will have more opportunities to negotiate if your house is listed on the open market.
4. Is Offerpad a scam?
Offerpad is a legitimate iBuying company present in over 1000 cities. It is also accredited by BBB since 2018.
5. Is Offerpad and Opendoor the same company?
No, they are different companies with a similar business model. Opendoor also charges a higher service fee than Offerpad. Learn more about which is the Better iBuyer
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