Launched in 2015, Offerpad is an iBuyer, which makes almost instant cash offers to home sellers. It is present in 22 markets across the USA. It uses algorithms to arrive at a quick valuation of the house.
The bulk of Offerpad reviews is positive, with some users appreciating its simple approach to cash offers. However, some Offerpad reviews included complaints on how the service fees and some deductions can eat up a chunk of your profits.
So if you are considering Offerpad to sell your house for cash, here’s a breakdown of things you should know.
Things to know
As per Offerpad reviews on various sites, the company is a legit iBuyer. The platform is fashioned for a mix of home sellers and buyers. For sellers, the process of selling their houses goes like this: fill out our information on the Offerpad website < accept/reject the offer in 4 days < complete the inspection < get an updated offer < closing. Nonetheless, its home-buying criterion is far more stringent than other iBuyers.
The company gives sellers the option of a quick and simple sale. Homeowners who want to sell their property as soon as possible can benefit from the speed offered by the platform.
In a traditional setting, a homeowner has to make a lot of effort in carrying out repairs, staging open houses, etc. But with Offerpad, they do not have to worry about making the repairs or staging their homes. As per Offerpad Reviews, the company may request minor repairs but you will not have to paint or completely overhaul your property.
Offerpad also offers free moving service if the homeowners are shifting within 50 miles of their present address. This is an area where Offerpad outclasses the rest.
Sellers will have to pay a service fee of 6-10% when selling their house for cash to Offerpad. Typical real-estate agents charge 5%. Homeowners are unlikely to pocket as much money as they would if their house was sold on the open market.
Once the cost of repairs and upgrades are deducted from the final offer, the profits get reduced even more. Besides, the sellers have to sign the purchase agreement before knowing the final repair costs – these may deduct thousands from the final amount.
Offerpad reviews suggest that once homebuyers have got the final cash offer and inspection has been undertaken, sellers only have 4 days to take a call on the deal. If they decide against moving forward with the offer, they will be charged a 1% cancellation fee.
Some Offerpad Reviews
While going through Offerpad Reviews on different rating websites, it was found:
- 5% felt that repairs were of poor quality and/or overpriced
- 10% mention that the final offer was considerably lower than the initial offer
- 7% cite issues with customer service like communication delays.
Offerpad Home-buying criteria
As mentioned above, the company is quite rigid about the types of homes it buys. Here are a few standard parameters for the kind of properties Offerpad will and will not buy:
Offerpad usually buys properties that…
- Are built after 1960
- Are single-family residential homes, townhouses, and condos
- Are built on land, which is less than 1acre in lot size
- Are less than $1 million (depending on the market)
Offerpad does not buy homes that…
- Are modular or mobile
- Do not possess a clear title
- Have major foundation or structural issues
If your home does not fit Offerpad’s bill, a company representative can give you the option of listing your property with an Offerpad realtor instead. Real estate agents can help evaluate a home’s market value and the possibility if Offerpad can resell it. iBuyers do not want properties clinging to them, they want to make money selling homes fast.
Offerpad vs Flat-fee MLS companies
Being an iBuyer, Offerpad assesses the homes by using their in-house algorithm. There are several third-party vendors in the mix, besides their team. A 100% flat-free MLS company, Houzeo & Zillow for instance, does not involve the manual hassles of a typical listing. Hence, the whole process takes a bit longer with Offerpad compared to a flat-fee MLS firm.
Flat fee MLS companies give relatively more visibility to your listing for a nominal fee. Besides augmenting your reach, it also gives the freedom to choose from multiple offers.
Offerpad can be a good choice if you are looking to offload your property quickly and are not averse to losing some value to a low offer price and service fee. Yes, repair costs will eat your profits but if you need to sell in as little as 10 days, the ease and convenience offered by this iBuyer are worth looking into. Having said that, regardless of your situation, a home is a high-value asset and it is always advisable to explore every alternative before zeroing in on one method.