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Offerpad is an iBuyer that launched in 2015, and currently buys and sells homes in metro areas within 11 states, primarily in the southern half of the United States. In the second quarter of 2021, Offerpad purchased 2,025 homes — a new record for the company — and sold 1,259 homes.
» MORE: What is an iBuyer?
What is Offerpad?
As an iBuyer, Offerpad provides three core services to home buyers and sellers within its markets.
Selling your home to Offerpad: With Offerpad Express, the company makes you a cash offer and buys your home directly from you. This fairly standard iBuyer offering includes perks like free local moving services and the ability to rent back your home for up to 90 days after closing.
Listing your home with Offerpad: If you want to see what offers you can get from home buyers on the open market in addition to Offerpad's cash offer, you can work with one of Offerpad's partner agents to list your home with Offerpad Flex. In most cases, you’ll have up to 90 days to take your home off the market and go with Offerpad's cash offer instead.
Buying a home from Offerpad: Properties that Offerpad has purchased are listed on real estate websites, though the iBuyer offers perks to home buyers who work with one of its partner real estate agents.
If you are selling your home to Offerpad, the iBuyer requires you to sign a binding purchase agreement based on its initial offer. With most iBuyers, you don't make a firm commitment until you receive their final offer, which accounts for adjustments due to condition and repairs. Once you've signed with Offerpad, you'll pay a cancellation fee equal to 1% of the offer amount if you decide not to go through with the sale for any reason other than the repair adjustment. If Offerpad elects not to go through with the transaction, no money is owed on either end.
As of August 2021, Offerpad buys and sells homes across 11 states within the following metro areas:
Arizona: Phoenix, Tucson.
Florida: Jacksonville, Orlando, Tampa.
Nevada: Las Vegas.
North Carolina: Charlotte (including adjacent areas of South Carolina), Raleigh.
Texas: Austin, Dallas/Fort Worth, Houston, San Antonio.
What kinds of homes does Offerpad buy?
In addition to being located within an area where Offerpad operates, your home will have to meet certain standards. These vary depending on the market, but the iBuyer offers some general parameters for the types of homes it will and won't buy.
Offerpad generally buys homes that…
Are no more than 60-70 years old.
Are on lots that are 1 acre or less.
Are valued below Offerpad's maximum for their market.
Offerpad does not buy homes that…
Are more than 70 years old.
Are manufactured, modular or mobile.
Do not have a clear title.
Have significant condition issues, such as foundation or structural concerns.
If your property doesn't meet the guidelines for a cash offer, an Offerpad representative may give you the option of listing the home with an Offerpad real estate agent instead.
Local agents in each market help to determine each home's value and the likelihood Offerpad will be able to resell it; iBuyers make money by selling homes, not by hanging on to them.
How does Offerpad work?
Offerpad offers two main services: Offerpad Express, a more traditional iBuyer offering, and Offerpad Flex, which is a hybrid between selling with an agent and selling to an iBuyer. You can also buy a home from Offerpad. Here’s how these services generally work:
1. Request an offer
You'll answer a series of simple questions about your home and provide your contact information. The form also gives you the opportunity to upload photos of your home or set up a time to do a brief virtual walkthrough with an Offerpad representative. While optional, providing details may help you get an offer that more accurately reflects your home's value.
2. Review your offer
Offerpad says it will send a cash offer for your home via email within 24 hours. The offer expires four days after the email is sent. You can ask to renew an expired offer online, but it won't necessarily be for the same amount as the first offer.
3. Accept the offer and choose a closing date
Though it may be amended later, you have to formally accept Offerpad's initial offer by signing a purchase agreement in order to proceed with the sale. This is different from other iBuyers, where the initial offer is considered preliminary and is not binding. You can choose a closing date that's up to 90 days from the date the offer's accepted. If it turns out you'll need more time than you initially anticipated, you can work with your Offerpad rep to adjust the timeline.
4. Get an inspection
After signing the purchase agreement, you'll enter the inspection period. Offerpad will send someone to your home for a roughly two-hour inspection. (You'll need to be there for it.) Offerpad then conveys to you the results of the inspection, mainly what the company believes needs repair. Note that this assessment is not the same as a standard home inspection or an appraisal. You can then elect to have Offerpad complete the repairs (with the costs deducted from the final amount you'll receive), have the repairs done yourself (providing Offerpad with receipts from contractors), or simply say you won't agree to the repairs — which could prompt Offerpad to back out of the sale. If you don't agree to the amount requested for repairs or adjustments made to the offer based on the home's condition, you can back out of the sale without paying the 1% cancellation fee.
5. Close and move
Roughly two days before closing, an Offerpad representative will do a final walkthrough to ensure that repairs are complete and the property is in the same condition as documented in the inspection. If any additional work needs to be done, it may delay closing.
If you won't be ready to move by the time you close, you can use Offerpad’s "Extended Stay" option to remain in your home a bit longer. A period of up to three days is included; for an additional fee, you can stay for 15, 30, 60 or 90 days.
If you're moving within 50 miles of the home you've sold to Offerpad, the company will pay the moving costs for up to 13,000 pounds of belongings from up to 2,800-square-feet of property.
With Offerpad Flex, you can get a cash offer (so you know what Offerpad is willing to pay for your home), but you can also list the property with one of Offerpad's partner real estate agents, allowing you to get offers directly from home buyers.
1. Request an offer
You'll start out just as you would with Offerpad Express — answering questions about your home and getting a cash offer. But if you decide to list your home rather than accept the offer, you'll be working with a local listing agent who's partnered with Offerpad. Their services include professional photography, an array of online extras (like a 3D interactive tour) and extensive digital marketing.
2. Consider making repairs
If you list with Offerpad and think cosmetic upgrades could help you get a better offer, you can have the company's contractors complete the work for you. Rather than paying out of pocket, the cost will be debited from your eventual profit from the home sale. This can include services like painting, upgrading appliances or fixtures, changing out flooring, home staging and removal of junk or debris. Some services, such as cleaning, basic repairs and landscape cleanup, are included with Offerpad Flex.
3. Sell to a buyer or take the cash offer
If listing on the open market doesn’t work out, Offerpad says you’ll generally have 90 days to change your mind and decide to take its offer.
» MORE: Ways to sell your home fast
Even if you aren't selling a home, you can buy a home directly from Offerpad. One of its local agents will act as your buyer's agent. The company says Offerpad buyers receive first dibs on Offerpad listings — a desirable incentive in a hot real estate market. In some locations, Offerpad grants up to $1,000 toward closing costs if you finance the purchase through Offerpad Home Loans.
You can browse Offerpad listings on its website, though you'll also find homes owned by Offerpad on other real estate listing websites.
» LEARN MORE: Visit Offerpad for more details
All iBuyers charge a fee for their services. Here's a breakdown of Offerpad's costs:
Offerpad Express: 5% of the final sale price.
Offerpad Flex: 6% of the final sale price, to cover the real estate agent commissions for both the listing agent and the buyer's agent.
Repairs: Costs will vary depending on what's found during Offerpad's inspection.
And as in any real estate transaction, you will be on the hook for closing costs. This can include transfer taxes or fees, escrow fees, real estate attorney fees, prorated property taxes or HOA fees, and title-related fees. If you initially hired a listing agent, then switched to Offerpad, you'll have to pay the agent out of pocket.
» MORE: What are closing costs?
How to get started with Offerpad
To get started, go to the Offerpad website and enter your address. You don't have to choose between Offerpad Express (selling to Offerpad) and Offerpad Flex (listing with Offerpad) right off the bat, though if you already know you'd prefer one over the other, scroll down the page and click "learn more" beneath Express or Flex. Either way, you'll end up filling out the same basic form with information about your house and receive a cash offer within 24 hours.