Offerpad vs Opendoor: Which is the Better iBuyer?

✍️ Editor’s Note: Opendoor, Offerpad, and numerous other iBuyers and cash buyers have submitted offers on properties listed on Houzeo.com. For more information check out our guide to Offerpad vs Opendoor!

»GET MORE CASH: Sell for more and faster by listing your home on the MLS via Houzeo.com!

Opendoor is predicted to have a record profit in the 2nd quarter of 2022. Offerpad has raised $355 million in funding so far. They are both iBuying behemoths.

You are looking to sell your home. Which one should you choose?

Offerpad vs. Opendoor vs Houzeo Overview

Which is Better Offerpad vs Opendoor

What is Offerpad?

Offerpad is a unique breed of online real estate company that makes cash offers for property. Unlike other cash investors, Offerpad makes its offers using algorithms. To arrive at a rapid value, they use local housing prices, dwelling attributes, and home conditions.

The business model of Offerpad is similar to that of Opendoor. Aside from the fact that Opendoor is a considerably larger business, the main difference between Offerpad and Opendoor is that the former often charge a higher 6-10% service fee, whereas the latter charges a lower 5% flat service fee. If you want a more in-depth look at Offerpad, click here.

For sellers, Offerpad’s only substantial benefit over Opendoor is their free local move service. If you live within 50 miles of your new house, Offerpad will pay for a professional moving service to transport your furniture, merchandise, and belongings.

✍NOTE: Despite the fact that Offerpad is growing its use of automatic certification technology, the company nevertheless advertises a very clear qualifying condition. To be qualified for an Offerpad offer, your home must be a single-family and single-acre home built after 1960 that is valued at less than $600,000. If you match these criteria, there’s a good chance Offerpad will buy your house.

What is Opendoor?

Opendor makes all-cash offers to homeowners within 24 hours of submitting a request for an offer on their website.

Being one of the largest iBuyer on the market, if you accept an offer from Opendoor, make sure you’re willing to pay a service fee of 5% of the sale price.

Opendoor, unlike more typical cash purchasers, operates solely online and has already become an industry leader in real estate transaction analytics and housing market research since its launch in 2014.

📝 READ: A seller can also list with Opendoor in order to test the market and get various offers.There is no commitment to accept Opendoor’s cash offer, and sellers can use Opendoor to maximize their sale price.

Without having to display a home, selling to Opendoor provides a seller with a quick cash offer and a flexible closing costs and date. After providing the property address and completing a few simple requirements, a seller can receive a preliminary cash offer via Opendoor in minutes. The next step is to conduct a video walkthrough of the property so that Opendoor can make the best offer possible.

 

How Do They Work?

How Does Offerpad Work?

These are the steps involved when you’re selling your house to Offerpad:

💰 Ask For an Offer: Fill up the form on their website which will require entire details of your house right from the size, number of bedrooms, curb appeal to appliance type, and added modifications. For a more accurate evaluation, upload pictures or a 15-minute video of your house.

🔢 Calculation: Offerpad creates an offer using their AI-powered technology (automated valuation model) as well as consulting their team of experts.

👨‍⚖️ Response: Now’s your chance to accept or reject the offer made by Offerpad. You have 4 days to make up your mind. Should you reject the offer, there’s no room for negotiations. If you accept the offer, you can sign the rest online and fill in details about the closing date, choose a local move service, and more.

🔨 Inspection and Repairs: Within 15 days after you’ve accepted the offer an inspection office is sent to verify the condition of the house for sale. If repair work needs to be carried out, you can:

• Do them yourself and get provide Offerpad with the receipts to adjust the cost.
• Let Offerpad do them for you and you pay them.
• Challenge the repairs and lose the offer.

📆 Close: Offerpad hires a title company or attorney. You sign on the dotted lines to validate the sale and receive your money.

How Opendoor Works

These are the steps involved when you’re selling your house to Opendoor:

💻 Request an offer: Submit your address and basic information, including property condition and characteristics in Opendoor’s estimate or mobile app for free. Opendoor will make a preliminary offer for your home by researching and evaluating the housing market. You have no obligation to accept this offer.

🏠 Virtual home tour: If you accept, Opendoor will evaluate the condition of your property by scheduling a free home assessment. The inspection takes 10-15 minutes usually. A company representative can virtually complete the assessment over live video with the homeowner, or the homeowner can take pictures and shoot a video with their camera or smartphone. The virtual walkthrough is a preliminary filter to pass your property in the next phase, inspection.

📒 Schedule an inspection: Opendoor will also send an estimator to evaluate the exterior of your house. Roughly 24 to 48 hours after these assessments, Opendoor will submit a finalized offer for the home. If you disagree with the final assessment results, you can cancel the deal anytime before closing without penalty.

💸 Close the sale: If you want to sell to Opendoor, you can move at your speed to close. Sellers can close in 14-60 days. Before closing, you will have to upload information to an online dashboard to ensure your home is in the same condition as when the assessment took place. Then, a few days after closing, you will receive the proceeds from the home’s sale.

Offerpad vs Opendoor Locations

Where is Offerpad Located?

Offerpad operates in 21 markets cities across the US. They are:

Las Vegas Charlotte Atlanta Birmingham	Phoenix Orlando Tampa Charlotte	Raleigh Austin Tucson Jacksonville	Dallas-Fort Worth Houston San Antonio

Opendoor Locations

Opendoor operates in 40 markets across The United States.

Orlando Las Vegas Los Angeles Nashville Phoenix Dallas-Fort Worth Denver

Portland Prescott Raleigh-Durham Riverside Sacramento Greensboro-Winston Houston

Salt Lake City San Diego San Antonio Tampa Tucson Jacksonville Killeen

Asheville Atlanta Austin Boise Charlotte Minneapolis-St. Paul

Which is Better Offerpad or Opendoor?

Advantages and Disadvantages of Offerpad

Pros and Cons of Opendoor

Offerpad vs Opendoor Fees

Opendoor and Offerpad have a similar pricing model.

Offerpad Fees

Offerpad Express	5%
Offerpad Flex	6%
Closing Costs	1% to 3%
Repair Costs	1% to 2%
🚩 Cancellation fee	1% (if you cancel post the 4 day-cancellation windows)
Total Cost	8% to 12%

• Offerpad will require you to use their title company. This does not cost you anything extra (since you must close at a title firm anyhow), but it generates additional revenue for them.

🚩 Offerpad hidden fees: No, Offerpad does not charge hidden fees. However, it is not explicitly stated that they charge a 1% cancellation fee. You get a turnaround time of 4 days within which you will be allowed to back out of their initial offer without a fee..

Opendoor Fees

Service Fee	5%
Closing Costs	1-3%
Repair Costs	1-2%
Total Fees	7-10%

Instead of deducting 5% to 6% from the price of the property, the charges are directly subtracted from the purchase price.

🚩 Opendoor hidden fees: No, there are no hidden fees with Opendoor. Opendoor, on the other hand, decides how much the repairs will cost. Because you will not be given a breakdown of the charge, it is effectively a hidden fee.

Buying from Offerpad vs Opendoor

Offerpad sells these properties to new buyers with their groundbreaking feature of Instant Access— which allows you to visit a home without the need of an agent.

You can visit the houses any day of the week between 6 a.m. and 11 p.m. by using their app to generate your own entry code. You have the freedom to conduct your due diligence at your convenience especially since the house isn’t occupied. Offerpad will also pay your agent a buyer’s agent commission.

In the case of Opendoor, there are select markets where they sell homes.  Visit their website and have a look at the homes they have listed.  The other option is to approach an Opendoor agent to help you lock down a house that is not owned by Opendoor

Whenever you’re satisfied with the prospective house, submit an offer through their app or through your real estate agent—if you do not have a real estate agent, Opendoor will assist you throughout the buying process.

Next, you can either finance your own home or choose to go with one of Opendoor’s lenders (which will, in turn, save you $1,000 at closing) and back up your offer for up to 120 days.

Select a closing day as per your convenience post and you may be entitled to a 1% buyer’s refund at closing. To ensure that you get your money’s worth and your new home is delivered as promised, Opendoor offers a 90-day repurchase guarantee for a 3% charge.

What Type of Houses Does Offerpad Buy?

If you want Offerpad to buy your house, you will have to meet their list of criteria. They are very particular about the homes they purchase to qualify. However, many Offerpad reviews state how home sellers have faced trouble due to these inflexible terms.

📍 Location	Within one of the 22 markets that Offerpad covers
🏠 Type of Homes	Residential homes – single-family homes, condos, and townhouses
💰 Value	Any home less than $1 million (also depends on the market)
🌲 Plot Size	On less than 1 acre of land
📆 Year Built	Built after 1960

What Type of Houses Does Opendoor Buy?

Opendoor also has a list of field criteria and terms your home needs to fit for a successful sale. Some of them include

💰 Value	Values between $100,000 and $600,000 (up to $1.4 million in hot housing markets)
🏠 Type of Homes	Single-family homes, townhouses, duplexes, and condos
🌲 Plot Size	Lots no larger than 1–2 acres. (depending upon the market)
📆 Year Built	Built after the year 1930
🏡 Condition	Owner-occupied homes only

Offerpad vs Opendoor Reviews

Offerpad.com Reviews

Most Offerpad reviews are positive with an average rating of 3.9 out of 5 stars. From across 279 Offerpad reviews, some home sellers have been content with their services while some have major complaints from this iBuyer.

• Yelp: 1.5/5 (25 reviews)
• Reviews.io: 2.17/5 (6 reviews)
• Sitejabber: 2.78/5 (33 reviews)

Opendoor.com Reviews

Customer reviews reflect using Opendoor is easy and people have benefitted largely from the simplicity. Opendoor has a 4.3/5 rating across 3000+ reviews on Reviews.io, Yelp, and Better Business Bureau.

• Reviews.io 4.25/5 (1,272 reviews)
• Yelp 3/5 (216 reviews)

Offerpad vs. Opendoor: Which one should you choose?

When it comes to choosing between these 2, both have their respective hit and misses.

You should consider Opendoor, only because:

• It overpays for the residences it purchases
• Is more actively in larger markets as opposed to its competitor (45 vs. Offerpad’s 22 markets)
• Offers buyers more flexibility
• No cancellation fee whatsoever

And you should consider Offerpad only because:

• Your house is worth more than 500,000 USD
• You’re short on time to sell your house possible (like a week or two)

The best thing you can do is ask everyone in your area for a risk-free, no-obligation offer. Although Opendoor pays the most on average, this does not guarantee that it will pay the most in every situation, so getting as many bids as possible can help ensure you get the best possible sale price and terms.

💡 FACT: Home sellers on Houzeo have received offers from a variety of cash buyers, including iBuyers like Offerpad and Opendoor.

Offerpad vs Opendoor: Top Alternative

Rather than shelling out a commission, it’s best if you approach a flat fee MLS listing company like Houzeo.

Being a 100% online Flat Fee MLS company, Houzeo eliminates the manual hassles of a typical home listing. Offerpad, on the other hand, evaluates and examines homes listed on their websites by using its algorithm.

Why Houzeo?

State-of-the-art technology with robust features like Houzeo Showings, Houzeo Offers, Intellilist Listing Management System, and more to guarantee you a seamless and hassle-free experience when selling your home.

Save on commission and choose a flat fee company where you don’t burn a hole in your pocket. Houzeo’s plans are flat fees and save you the hassle of buyer agent commission as well.

When you list on Houzeo, your property gets shared on top real estate websites like Zillow, Redfin, Trulia, etc. which in turn makes sure your property sells quickly.

With a review of 4.9/5 on Google and Trustpilot, the customer care at Houzeo is best in class, attentive and knowledgeable. Most importantly, they are at your service round the clock.

With a lethal combination of technology and customer support, Houzeo beats any iBuyer that comes in its way assuring you the quickest results and best customer experience.

Frequently Asked Questions

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