13 min read Mar 25, 2022

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!
offerpad vs opendoor reviews

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

At a GlanceOfferpadOpendoorHouzeo
Listing Fee5%5%$329
100% online
Nationwide Coverage
Offers directly to you
Closing Fee1-3%1-3%None
Cancelation Fee1%1%None
Markets Served224580+
Repair CostsAdditional deducted from offer.Additional deducted from offerNA
AgentsIn-house AgentsIn-house Agents + Partner AgentsIn-house Agents
Closing daysFlexibleFlexibleNA
Closing Days8-90 days14-60 days4-60 days
Mobile App

Which is Better Offerpad vs Opendoor

What is Offerpad?



  • Service Fee: 5%
  • Close in 10 days
  • Offerpad has 4.5 stars out of 5 on TrustPilot 4.6/5 (out of 165 reviews)

Known for its fast closing schedule, Offerpad is an iBuyer founded in 2017. Offerpad’s patented evaluation tool generates an initial offer price for the property based on housing market stats and insights from in-house real estate market specialists.

  • Service Fee: 5% of Home Sale Price
  • Typical Offer: 70% to 90% of Fair Market Value (FMV)
  • Types of Properties Purchased: Offerpad offers cash for houses only in desirable neighborhoods and for properties that need zero or minimal repairs. Distressed properties may not get a cash offer from Offerpad.
  • Closing Date & Offer Terms: Offerpad has the fastest closing schedule, with the earliest timeline being 7 days and up to 45 days out. Their offer terms are inflexible, and the initial cash offer terms may change after the home inspection.
  • Limited Coverage: Offerpad only covers 22 markets.

🚩 You Should Know: Offerpad’s final cash offer is calculated after deducting home repair costs and seller closing costs. For the ease of an instant cash offer and fast closing, you may pay up to 13% of your home’s sale price in service fees. Also, if you want to back out of the deal with Offerpad after accepting a cash offer, you will have to pay a 1% cancellation fee.

👉 Our Take: Offerpad can be considered if you need to sell quickly, and this iBuyer offers cash for houses in your zip code. Remember—an MLS listing on Houzeo.com will automatically put you in front of Opendoor and other cash house buyers.

» Offerpad Reviews: Is the Fast Closing Schedule Worth the Tradeoff?

  • In just 10 days, you can close your house sale with Offerpad
  • No need to fix or prepare the house
  • Long-term stay option for house sellers
  • Closing costs and service fees can add up to more than 10% of the purchase price in some situations, resulting in a lower cash offer than expected
  • 1% cancellation fees if you back out of the deal after acceptance

Offerpad has a 4.6 out of 5 stars rating on TrustPilot.

» Offerpad Review: Check out exclusive customer reviews of 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?



Opendoor Logo
  • Service Fee: 5%
  • 📍 Coverage: 45 markets
  • Opendoor has 4.4 stars out of 5 4.4/5 (out of 3,066 reviews)

Opendoor is the country’s biggest iBuyer. They offer fast cash for homes and flexible closing timelines. Opendoor makes competitive offers, but these are far less than your property can get on the open market.

  • Service Fee: 5% of Home Sale Price
  • Typical Offer: 70% to 100% of Fair Market Value (FMV)
  • Types of Properties Purchased: Opendoor offers cash for houses only in desirable neighborhoods. If your property needs minimal repairs, Opendoor is an option for you. Otherwise, you may not even receive a preliminary cash offer from Opendoor.
  • Closing Date & Offer Terms: Opendoor provides a flexible closings, with dates up to 45 days out. Opendoor’s offers are not flexible, and final terms may change after home inspection.
  • Limited Coverage: Opendoor only covers 51 markets.

🚩 You Should Know: For the ease of a fast cash offer and flexible closing, you may pay up to 13% of your home’s sale price in service fees. Opendoor’s final cash offer is calculated after deducting home repair costs and closing costs.

👉 Our Take: Opendoor could be the best company to sell your house fast if they purchase properties in your zip code. Remember—an MLS listing on Houzeo.com will automatically put you in front of Opendoor and other iBuyers for an instant cash offer.

» Opendoor Reviews: Everything you need to know about America’s biggest iBuyer

  • Excellent for experienced home sellers with desirable properties
  • The repair cost breakdown isn’t disclosed in the offer
  • Not suitable for first-timers or FSBO sellers
  • The sales process may feel rushed, and the home seller has negligible control over the sale
  • The difference between Opendoor’s preliminary offer vs. final offer can be humongous
  • Home sellers receive cash offers within 24-48 hours, only on the properties that are in Opendoor’s coverage.

Opendoor has an average rating of 4.4 out of 5 stars on Reviews.io.

» Opendoor Review: Is Opendoor the best cash home buyer in 2023?

👎 Limited Coverage: Opendoor offers cash for houses only in 51 markets, and some of the top markets are Boston, Albuquerque, Cincinnati, Indianapolis, Birmingham, Modesto & Stockton, Galveston, Miami, San Francisco, San Jose, etc.

👍 Rankings of Local Cash Buyers: In case Opendoor doesn’t cover your zip code, you can consider local companies that buy houses for cash:

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
Dallas-Fort Worth
San Antonio

Opendoor Locations

Opendoor operates in 40 markets across The United States.

Las Vegas
Los Angeles
Dallas-Fort Worth
Salt Lake City
San Diego
San Antonio
Minneapolis-St. Paul

Which is Better Offerpad or Opendoor?

Advantages and Disadvantages of Offerpad

✅ They close the deal within 10 days.⛔ You end up paying 6-10% as a service fee.
✅ Sellers don’t worry about staging the home nor worry about repairs.⛔ You settle for less than what the market may offer you otherwise (especially since you’re short on time.
✅ They offer flexible closing dates as per your convenience.⛔ Take it or leave it to approach when they give you an offer.
✅ Seamless end-to-end process without the possibility of third-party people to make it complex.⛔ Picky when it comes to purchasing homes

Pros and Cons of Opendoor

✅ Opendoor gives sellers two alternatives for selling a home: sell to Opendoor for a full cash settlement or list with Opendoor for a traditional sale.⛔ Opendoor does not bargain with its merchants. They employ an approach similar to Offerpad in that they check your home and give you a new offer if you provide new information.
✅ Sellers pay a 5% service fee with either program.⛔ Opendoor only purchases specific types of homes within a specific price range. As a result, it will not be suitable for everyone.
✅ Owners who sell to Opendoor for cash can have the firm subtract the cost of any necessary repairs from the net selling proceeds and then let Opendoor handle the task.⛔ Opendoor is not required to cover any closing costs. Sellers that use Opendoor listings will be responsible for all closing charges, such as title insurance and transfer tax.

Offerpad vs Opendoor Fees

Opendoor and Offerpad have a similar pricing model.

Offerpad Fees

Offerpad Express5%
Offerpad Flex6%
Closing Costs1% to 3%
Repair Costs1% to 2%
🚩 Cancellation fee1% (if you cancel post the 4 day-cancellation windows)
Total Cost8% 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 Fee5%
Closing Costs1-3%
Repair Costs1-2%
Total Fees7-10%

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

👩‍💻 Psst

Houzeo makes buying an FSBO home easier!

  • Narrow down your search by choosing the property type, whether it’s a For Sale, Sale Pending, or Sold with Houzeo’s specific filters.
  • Customize it further with a specific search based on Max HOA, tours, square feet, lot size, year built, basement, no. of stories, days, etc.
  • You can also find what kind of home type you’re looking for: single-family, multifamily, townhouses, condos, co-ops, lands/lot, mobile, others
  • 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.

    📍 LocationWithin one of the 22 markets that Offerpad covers
    🏠 Type of HomesResidential homes – single-family homes, condos, and townhouses
    💰 ValueAny home less than $1 million (also depends on the market)
    🌲 Plot SizeOn 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

    💰 ValueValues between $100,000 and $600,000 (up to $1.4 million in hot housing markets)
    🏠 Type of HomesSingle-family homes, townhouses, duplexes, and condos
    🌲 Plot SizeLots no larger than 1–2 acres. (depending upon the market)
    📆 Year BuiltBuilt after the year 1930
    🏡 ConditionOwner-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.

    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.

    📱 Houzeo is one of the most reviewed companies on Trustpilot!

    With an excellent rating of 4.9! ⭐⭐⭐⭐⭐

    Read them Yourself!

    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.

    #1 Flat Fee MLS Service


    Houzeo Logo
    • Listing Fee: $349
    • Available nationwide
    • Houzeo has 4.9 out of 5 stars 4.9/5 (4,521 reviews)

    Houzeo offers 4 Flat Fee MLS packages.

    • Bronze Package – FREE: This package offers Houzeo listing only for 6 months with maximum photos. You pay a $49 refundable fee for a yard sign and receive your refund after sending a selfie with it.
    • Silver Package – $349+: This includes everything that home sellers typically look for.
    • Gold Package – $399+: It is Houzeo’s signature MLS package and includes all the technology Houzeo is known for Houzeo Showings, Houzeo Offers, and DigiTransact.
    • Platinum – $999+: It includes the assistance of a licensed broker to help you with negotiations, disclosures, and closing.

    👉 Our Take: We recommend the GOLD plan. You’ll have all the access to Houzeo tech, making managing showings and offer negotiations easy!

    » Houzeo Reviews: Houzeo is 100% online. You can finish listing formalities in less than 60 mins.

    Houzeo is America’s #1 Flat Fee MLS service because of 4 reasons:

    1. Max Exposure: Houzeo MLS packages give you access to the MLS, Zillow, Trulia, Realtor.com, Redfin, and 100s of other websites.
    2. 5-star Customer Service: Houzeo has a fully staffed customer service desk available 6 days a week. Chats and emails are open 7 days a week. This is rare in today’s world.
    3. 100% Online: Houzeo is high-tech. For you, this means easy listing, fast changes, online showings, and online offers Houzeo Mobile App is also very powerful.
    4. No Listing Commission: In most states, you’ll be paying just a small flat fee to list on MLS. Houzeo covers 47 states + DC!. And remember, all fees are disclosed upfront, so there are no Houzeo hidden fees.

    There are no dealbreakers with Houzeo.

    » Houzeo Reviews: Houzeo is rated “Excellent” with a 4.9 out of 5 star rating by 4,521 home sellers on Google Reviews and Trustpilot!

    Houzeo is rated 4.9 out of 5 stars by thousands of home sellers on Google & Trustpilot.

    » Houzeo Reviews: Check out how Team Houzeo has addressed all Houzeo complaints from home sellers.

    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.

    📹 Curious to know more about Houzeo? Check out our quick video!

    How to Request Highest & Best Offers?

    Learn Today!

    Start Your FREE Listing NOW!

    Frequently Asked Questions

    Who is better Opendoor or Offerpad?

    Opendoor is a smarter alternative than Offerpad as it has no cancellation fees associated with it, covers a wider area, generally makes better offers than Offerpad and is more flexible with closing times.

    What’s the difference between Offerpad and Opendoor?

    One of the biggest aspects which differentiates these two organizations is that Opendoor allows sellers to cancel without penalty at any time before closing, whereas Offerpad charges a 1% cancellation fee and is spread across more areas as compared to Offerpad.

    Does Opendoor pay a fair price?

    Opendoor often pays you less money than as opposed to if you sold your house on the open market which typically covers expenses while they are attempting to resell your home. They aren't, however, attempting to undercut sellers with low prices. Their costs are reasonable for the services they provide.

    Can you negotiate price with Opendoor?

    Yes you can negotiate price by submitting your counter offers via email when dealing with Opendoor.

    Can you cancel Opendoor contract?

    Yes, you can cancel your contract any time before closing at cost. You are also not obligated to pay a cancellation fee for the same.

    What is the Opendoor addendum?

    If the seller receives an online offer from Opendoor, the company sends home inspectors to check the property before closing. Depending on the results of the inspection, Opendoor may request that a seller sign an addendum to the offer requiring the seller to cover the expenses of repairs in the form of a credit at closing.

    Is Offerpad a rip-off?

    In the states where it operates, Offerpad is a fully licensed real estate company. They have a Better Business Bureau license, so they make an honest effort to respond to complaints. The offers on homes are genuine, and they will be delivered as promised.

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