OfferPad is an iBuyer site, meaning it works hard to make cash offers that are practically instant for users. As a direct home buyer, Offerpad can close deals in as little as eight days when everything goes according to plan. It comes in second place in sales when compared to systems like Opendoor.
There are three central services OfferPad does. If you utilize the company, you can either:
- Purchase a home
- Sell a home
- List a home
These are the three standard services OfferPad offers, simple and straight to the point.
OfferPad operates in about eleven states across the United States of America. It streamlines the buying process and cuts out the realtor, listing with an agent, and open houses. It’s selling or buying a home without the hassle that usually comes from dealing with the real estate industry.
To those who have never used an iBuyer site before, it can seem a little tricky to believe that a company would give you money that fast. Is OfferPad a legit company, or is it a scam that will drain you of everything in your account? This question is a valid one to consider for potential buyers and sellers.
OfferPad is a legitimate company you can trust to help you buy or sell your home. We know this to be true because it:
- Has an A+ from the Better Business Bureau
- Has tons of customer input
- Successful sales over their years of existence
- It’s the second largest iBuyer in the United States
We can assure you that OfferPad is a genuine company. It’s not a scammer pretending to be something that seems too good to be true.
Still, the proof of the reality of this company doesn't mean it’s the best for you. Is OfferPad worth your time, or is there another site you should go with to sell your home or buy a new one?
We’ve talked about OfferPad, what it is, and why it’s a legitimate company. However, we haven’t discussed how it works. How do you sell your home on OfferPad?
There are a few simple steps to sell a home on OfferPad. These include:
- Requesting an offer for your home
- Receiving a cash offer from the company
- Signing a contract
- Completing the home inspection with a home inspector
- Receiving the final offer based on damages
- Closing the deal
Once you finish these up, your house is sold, and you’ll have money in your pocket.
When buying, you can browse available homes and pick the one you enjoy. Then, you can contact an agent and schedule a tour. If you like it, you can make an offer and the house will become yours.
Offerpad buys houses of all shapes and sizes, but they expect homes to meet certain criteria. Most of the houses Offerpad buys are single-family homes that have been built after 1960 and priced below $1 million. Additionally, Offerpad typically buys homes on lots of up to 1 acre.
Of course, not every home will work with these criteria in place. You might have a home built before 1960 or land that exceeds two acres in size. If you do, you may need to look to a different company to sell your home in a streamlined manner.
Anytime you sell or buy a home, there will be fees that exist. Like other iBuyer companies, OfferPad has fees you can expect to pay when selling or buying through them. These are critical to consider so you’re not blindsided by unexpected costs when the time comes to pay the price in full.
Here are some of the fees OfferPad charges for their services:
- Service Fee of 5-7%
- Estimated Closing Costs of 1%
- Seller Concessions for Listers from 0-2%
- Cancellation fees of 1%
The service charge and commission fees are the biggest and throw the most people off their game. Anticipate paying at least 10% in fees to stay on the safe side of preparation.
If you go with a traditional real estate agent, you will still have to pay fees for their services. OfferPad’s costs are competitive with those in the classic world. However, their cancellation fee puts them behind companies like Opendoor which permit cancellations to happen for free within a period.
Who is OfferPad for in the world? OfferPad is for anyone. However, there are a few people that will enjoy what OfferPad has to offer more than others. Let’s talk about them.
You’ll enjoy OfferPad the most if you:
- Have dealt with the real estate industry before and don’t want to do it again
- Get easily confused by what goes on when buying and selling a home
- Don’t have enough time to go through the process of finding a reliable company
- Want to avoid paperwork and other complications
If you fall under one of these labels, you’ll love OfferPad.
OfferPad was created with the intent to make a complicated service more straightforward and less complex. If this sounds right up your alley, OfferPad is for you.
OfferPad has received mixed reviews, with much customer feedback leaning towards the negative. On Review.io, OfferPad got a score of 2.67/5 with nine ratings. On the Better Business Bureau, Offerpad came in at 2.36/5 with fifty customer reviews. The most common complaint is that sellers felt they received a low offer price from Offerpad.
Here’s an example five-star review from the Better Business Bureau:
Alissa seemed to love the ease that came with using OfferPad as her main selling point. She didn’t think that the price saved her the most money, but she assumed it was worth it when factoring in the level of convenience that came with the company.
Here’s another example four-star review from Review.io:
Although thrown off by the many negative reviews, Tre seems to appreciate the helpfulness of the company and the flexibility they offered in their moving dates. Still, he didn’t enjoy the extra fees they required for repairs and fixes around the home.
These four-star reviews were not the majority of the reviews on these sites. The most prominent issue seemed to be that the prices were unexpected for the value. If you decide to sell through OfferPad, be aware that the amount you receive might be lower than you anticipated.
OfferPad is not the only iBuyer business on the market. Several alternatives serve as strong contenders if you’re trying to decide which service is the right one for you. These are all valid and have features that set them apart from other streamlined home-buying services.
Some of the best OfferPad alternatives that exist on the market include:
- Knock: Knock is more of a trade-in-focused service, rather than one that emphasizes buying and selling.
- Zillow Offers: Zillow left the iBuyer business but takes a little longer and charges less in terms of fees.
- OpenDoor: OpenDoor is almost identical but has no cancellation fee and has a better selling and buying history.
These alternatives provide some competition for OfferPad in the real estate world.
Although OfferPad isn’t the best when it comes to streamlined buying, it’s still a solid option. These competitors can be an ideal backup if things fall through with this company when you sell your home. OpenDoor is still the top runner in this competitive industry.
In the world of iBuyer companies, OfferPad is a solid competitor. Their fees match up with other companies, and they offer an efficiency that draws consumers to the iBuyer system. Unfortunately, OfferPad has a 1% cancellation fee that makes it slightly worse than other companies like Opendoor.
Still, if you want a quick home sale without having to list on the open market, OfferPad is one of the best choices out there. It’s worth a shot to see if it’s a company that will fit your needs in the housing market, though many customers have decided it’s not the best choice for them based on the offer they received for their home.