Offerpad Reviews: How It Works and How Real Customers Feel (2022 Update)

By Amy Beardsley

Posted on August 10th, 2022

What is Offerpad? | Is Offerpad legit? | How it works | Additional services | Offerpad reviews from sellers | Offerpad reviews from buyers | Offerpad fees | Alternatives

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It takes the average home seller 20-30 days to find a buyer, plus an additional 30-45 days to close the deal.

But many sellers don't want to wait this long — or simply can't afford it. If you need to sell fast, or if you're struggling to line up a home sale and purchase, the traditional timeline can cause unwanted stress.

Offerpad is a company that aims to solve this dilemma. As one of the largest iBuyers in the U.S., Offerpad gives you a nearly-instant cash offer without requiring prep or repairs that often accompany a traditional sale. In fact, you won't have to worry about hosting open houses or showings at all.

Customers praise Offerpad's convenient, hassle-free alternative to typical home sales. And there's no risk or downside to considering the company's offer — if you don't like it, you can simply walk away.

However, Offerpad isn't available everywhere and doesn't accept every home. Read on to learn about Offerpad's selection criteria, fees, and how it works (plus real reviews from recent customers).

👋 Compare cash offers to what you could earn by listing your home on the open market!

What Is Offerpad?

Offerpad is an iBuyer — a venture-backed real estate company — that makes near-instant, all cash offers for homes. As of 2021, Offerpad was buying and selling more than 4,000 homes annually, with plans to expand throughout the U.S.

Instead of selling your home to an individual buyer, Offerpad will purchase your home, with no need to clean up, repair, or prepare your home for sale. Offers are calculated by a combination of in-house real estate experts and technology, and most eligible homeowners receive an offer within 24 hours.

The process combines convenience and speed — two things you wouldn’t normally associate with selling a house.

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Is Offerpad Legit?

Yes, Offerpad is a legitimate business that maintains real estate licenses in 17 states. It's currently the second-largest iBuyer by transaction volume in the U.S.

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How Does Offerpad Work?

Step 1: Submit Your Information

Your Offerpad experience begins with an online form. You'll provide Offerpad with basic information about your home’s location, condition, structure, finishes, and any special features (e.g., a pool or additional buildings on the property).

However, keep in mind that not all homes are eligible for Offerpad:

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Eligible service areas include markets in Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Kansas, Missouri, Nevada, North Carolina, Ohio, South Carolina, Tennessee, Texas, and Utah.

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⚡ Insider Tip: Offerpad can provide an offer within 24 hours if you include photos of your house. Photos only need to display the basics, such as the layout and any finishes, so you don't need to clean or declutter! You can still get an offer without photos — but it takes longer and may result in a lower offer.

Step 2: Receive an Offer

If your home is eligible, you'll receive a cash offer within 24-48 hours.

Once you get an offer, you must act fast — you only have four days to accept before it expires. You can renew your offer after it expires, but the amount may vary depending on changing market activity and other factors.

If you think Offerpad missed anything that could result in a higher valuation, contact your Offerpad Solutions Advisor to provide more information and request an update.

👋 Compare cash offers to what you could earn with a top-rated real estate agent!

Step 3: Accept or Reject the Offer

If you don't want to accept Offerpad's price, you can simply walk away with no strings attached. There's no risk or downside to receiving an offer.

If you do choose to accept the offer, you'll sign a purchase agreement with Offerpad.

Step 4: Schedule an Inspection

After accepting Offerpad's cash offer, the next step will be a home inspection. Offerpad will send an inspector to look at your property and verify its condition.

Based on the inspection, Offerpad will provide an updated offer that reflects any repairs it deems necessary. You can either make these repairs yourself with an approved contractor, or allow Offerpad to handle them in exchange for a reduced sale price.

⚠️ Be Aware: You'll only have four days after the inspection to reject Offerpad's updated offer, or you'll have to pay a 1% cancellation fee. It's a very narrow window that would make it difficult to schedule your own inspection or vet local contractors.

Step 5: Close the Deal

One of Offerpad's biggest selling points is the opportunity to set your own closing date within a 90 day window. If you need to close faster that you would in a traditional sale, most Offerpad sellers can close in as little as eight to 15 days.

How Offerpad Works for Buyers

Offerpad's business model is based on buying and reselling homes — so the company has thousands of homes available.

You must be prequalified for financing and be prepared to cover all the usual costs involved in a home purchase, including the inspection fee, appraisal fee, down payment, and closing costs.

There are no additional or hidden fees associated with buying a home from Offerpad, and the company offers standard buyer's agent commission.

Just like a traditional home sale, we always recommend that buyers work with a trusted local real estate agent who can guide them through the process. There's no additional cost, since Offerpad (or a seller) will cover your agent's commission.

A good agent will help you make important decisions, from crafting an offer to negotiating contingencies. If you choose to handle the sale yourself, you could be at a disadvantage — particularly when negotiating with a large company like Offerpad.

If you're still looking for a great agent near you, our friends at Clever Real Estate can help. Clever is a free service that provides expert advice and personalized introductions to the best agents from Keller Williams, RE/MAX, and other national brokers. You can get started by submitting information about your goals, then connect directly with Clever's licensed concierge team to shop around for agents who are a great fit for your needs.

Best of all, buyers in most states can get up to 0.5% cash back after closing — just for finding a qualified agent through Clever!

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Additional Services From Offerpad

Offerpad Express helps you get a competitive cash offer within 24 hours. It's a good fit if you urgently need to sell your home or have a hard move-out date.

Offerpad Flex is like a “backup” option. It holds your cash offer for up to 60 days while you list your home on the market. Offerpad Flex is best if you want help to improve your home because the company advances funds and coordinates renovations to help you get a higher selling price.

Offerpad Reviews From Sellers

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As the second-biggest iBuyer, Offerpad has worked with thousands of home buyers and sellers. The company currently has a weighted average of 3.96 / 5 stars, based on nearly 500 reviews across Trustpilot, the Better Business Bureau (BBB) Reviews.io, and Yelp. It also has an A+ rating from the BBB.

Positive reviews praise Offerpad for delivering exactly what it offers: A fast, hassle-free home sale.

However, not all customers have this experience. Buyers' complaints focus on the subpar quality of repairs, while some sellers are caught off-guard by pricy quotes for repairs that subtract thousands of dollars from the company's initial cash offer.

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Offerpad Reviews From Buyers

Offerpad claims their service removes the stress and hassle of buying a house. A dedicated transaction manager (sales rep) helps you through the process. The company can work around your schedule and provide a flexible move-in date.

However, complaints from buyers focus on the poor quality of repairs and unexpected communication delays.

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How Much Are Offerpad Fees?

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Offerpad makes money from buying your house at around fair market value, then reselling it. The company also charges fees for using its service.

Home sellers should be aware that using either of Offerpad’s services can add up fast — fees range from at least 6% to 11%. That isn’t too far off compared to what you’d pay with a traditional real estate agent — but keep in mind that repairs could subtract thousands from your final payout.

However, when you sell your home to Offerpad, you'll only receive one offer. If you live in an area where homes are selling fast, or there aren't many homes on the market, there's a good chance that you could receive multiple offers or enter a bidding war, even if you choose not to complete significant renovations prior to listing. In a competitive market, buyers may even be willing to waive contingencies.

Before committing to Offerpad, it's always a good idea to learn your home's true value in your local market. If you're interested in receiving a free home valuation, our friends at Clever Real Estate can connect you with top-rated real estate agents who know exactly how homes are selling in your local market.

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The Best Alternatives to Offerpad

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Offerpad vs. Traditional Real Estate Agent

Offerpad promises convenience and speed — not the best price or savings on typical real estate fees.

However, this convenience could end up costing you in the end. For example, let's say Offerpad offers you $300,000 for your home, then adjusts the price to $270,000 after the inspection. You'll still have to pay 6-11% in fees and any outstanding mortgage payments, reducing your profits further.

If homes are selling fast in your area, you might be able to price your home a bit higher — or you could receive multiple offers that drive up the price and reduce the burden of contingencies.

If you're not sure which path would be more advantageous for your goals, we recommend reaching out to our friends at Clever Real Estate. Their licensed concierge team is available to talk through the pros and cons of each option, based on how homes are selling in your local market.

👋 Get free, no-obligation advice from a real estate expert today!

Offerpad vs. Opendoor

Opendoor was the first iBuyer in the U.S., and it's still the largest iBuyer today. That means it's available in more markets — so if Offerpad isn't buying homes near you, it's worth checking out Opendoor.

The two companies have very similar business models and processes. Opendoor has a reputation for paying a bit more for homes, and its fees are slightly lower than Offerpad.

If both iBuyers are active in your area, it's a good idea to request cash offers from both so you can compare them.

Offerpad vs. WeBuyHouses

WeBuyHouses is a cash buyer company that makes all cash offers and buys homes as-is. If your home is in poor condition and isn't eligible for Offerpad, WeBuyHouses would likely still be willing to make an offer.

However, it's important to know that WeBuyHouses and other cash buyer companies have a different business model than iBuyers. You should expect your offer to be much less than fair market value — sometimes as little as 50% of what you could list your home for on the open market.

For that reason, we always recommend speaking with a real estate agent who has experience selling homes on expedited timelines. Otherwise, you might end up with regrets about accepting a low sale price.

Is Offerpad Right for You?

Before selling your home to Offerpad, it's important to identify your priorities for the sale. If you:

  • Need to sell immediately
  • Don't want to make repairs or renovations
  • Want to avoid coordinating showings with children or pets
  • Need to coordinate a home sale and purchase

— then Offerpad is definitely an option worth considering.

However, if you live in an area where homes are selling fast, you may be able to sell quickly and walk away with more money from your home sale.

Still not sure which path to choose? Our friends at Clever Real Estate are here to provide advice or connect you with real estate experts in your area. Clever offers a free hotline staffed by licensed realtors, helping you get peace of mind as you shop around for the option that will work best for you.

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Recommended Reading

Offerpad FAQs

How does Offerpad work?

Offerpad provides fast, all cash offers and buys homes without any showings, prep work, or repairs. The process is simple and includes submitting an online application, receiving an initial offer, going through a home inspection, and then receiving an adjusted offer that reflects Offerpad's estimated repair costs. However, Offerpad doesn't purchase homes in all areas, and some Offerpad reviews mention lowball offers, delays, and other concerns. Learn more about how Offerpad works for buyers and sellers.

What is Offerpad?

Offerpad is an iBuyer — a venture-backed real estate company — that makes near-instant, all cash offers for homes. Instead of selling your home to an individual buyer, Offerpad will purchase your home, with no need to clean up, repair, or prepare your home for sale. Offers are calculated by a combination of in-house real estate experts and technology, and most eligible homeowners receive an offer within 24 hours. Learn how Offerpad works, including Offerpad reviews from recent customers.

Is Offerpad legit?

Yes, Offerpad is a legitimate business that maintains real estate licenses in 17 states. It's currently the second-largest iBuyer by transaction volume in the U.S. While Offerpad reviews skew very positive, some home buyers and sellers have expressed concerns about pricey repair costs, communication delays, and low-quality repairs. Read Offerpad reviews from recent customers.

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Posted in Buying a House, Selling a House