In a comparison of Offerpad vs. Opendoor, both companies are probably on your radar, especially if you are only accepting cash deals. Neither company requires many hoops for sellers to jump through – or even a formal listing – and either of them would gladly take the home off your hands for at or below market value. However, there are nuances between these two companies that could sway you in one direction or the other.
Opendoor is a more widely recognized brand and typically offers a bit more bang for your buck. Meanwhile, Offerpad seems to have a greater focus on customer service, which could go a long way for first-time sellers. Consider requesting offers from both companies first.
Even if your home isn’t a match for iBuyers, maybe because it needs major repairs, you’re in luck. Clever can help you compare offers you may receive from Opendoor, Offerpad or other cash buyers that pique your interest. First, let us send you a free home valuation so you know the true worth of your property and can make an informed decision.
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» LEARN: Selling your home to an iBuyer
Key takeaways: Offerpad vs. Opendoor
|• Convenient if you need to sell your home quickly|
• Offers close to market value
• Receive a free home valuation
|• Preliminary offer within 24 hours|
• Closing within weeks
• Lower final offer lower for any repairs
Offerpad and Opendoor charge comparable fees, with the final bill varying by property and whoever handles repairs.
|Offerpad Express||Offerpad Flex||Opendoor|
|Repairs + concessions||Varies||Up to 1%||Up to 2%|
|Total (based on $250,000 sale)||$20,000–25,000||$20,000||$20,000|
|Cancellation fee||1% of original offer||None||None (contested)|
Offerpad generates offers using its team of real estate professionals and proprietary technology that produces comps data. Offerpad’s pricing model is two-pronged: one fee for selling TO Offerpad Express, another for listing WITH Offerpad Flex.
Homeowners who sell directly to Offerpad Express can expect to receive a below-market offer and pay a service fee of 6% of the sale price, plus closing costs of 1–3%. These costs cover things like title insurance, escrow, HOA transfers, taxes, and document transfers.
If a property doesn’t need extensive repairs, Offerpad might agree to handle the cost and deduct that from the offer price.
Sellers can also list their homes for sale through Offerpad Flex, which would cost more. These fees involve a 6% agent commission, an estimated 1% in closing costs, and an estimated 1% in concessions or repairs.
Opendoor sellers pay a 5% service fee in exchange for a cash sale, slightly less than Offerpad’s fee. Opendoor takes care of any repairs and deducts those costs from the sale price at closing, so there are no additional out-of-pocket costs. Sellers also pay a 1% closing fee.
In addition, sellers have the option to list their home with Opendoor for a commission of 5%, as well as up to 2% in buyer concessions.
Offerpad reviews are largely positive, but the company also has its share of disgruntled buyers and sellers. One of the features that sellers seem to appreciate the most is the simplicity of using Offerpad, including the paperwork process. Homeowners who aren’t interested in hosting open houses or taking many calls find Offerpad suits their needs.
Sellers who had good experiences were grateful for the company’s ability to answer all of their questions along the way. They describe the process as pleasant and fast, while customer service was knowledgeable, friendly and helpful. When things go smoothly, the sale could be completed rather quickly without much heavy lifting on the seller’s part.
Chief among complaints involve pricing, including lowering the original bid after the inspection process. Sellers also received what they describe as lowball offers from the company, even “substantially” below market value. One homeowner shared being able to sell for tens of thousands of dollars more by going the traditional route.
In addition, overpricing appears to complicate the sale process for even savvy sellers. According to Offerpad reviews on Google, repairs are a sticking point, with sudden changes and a lack of updates costing sellers time and money.
Another issue is Offerpad’s lack of communication and transparency around the properties that meet its criteria. For example, Offerpad won’t accept properties worth over half a million dollars or located on more than three acres. Customers who weren’t aware of the fine print were frustrated about investing their time.
For such a large iBuyer, Opendoor reviews are largely negative. Customers find them difficult to work with and lacking on the ethical side.
Not surprisingly, pricing is one of the biggest complaints. Sellers shared how Opendoor’s offers were a far cry from the property’s true value, in some cases 65–70% of what the home is apparently worth. Some customers accuse the company of pulling a bait and switch: lowering the offer dramatically from the original quote.
Repair costs are a point of contention on Opendoor, too. Customers complain either that the company does a shoddy job or that they’d prefer to make the fixes themselves.
Customer service appears to be lacking, leaving some sellers in the dark when the closing date changed. Opendoor’s fine print says customers can cancel a sales contract any time, but one seller said that they were denied this opportunity.
Sellers who had a positive experience tout the simplicity of Opendoor’s model, especially good communication via text message and email.
Offerpad is more widely available than Opendoor.
Offerpad is headquartered in Chandler, Arizona, and operates in major cities, including in Colorado, Florida, Missouri, North Carolina, Texas. Opendoor is located in San Francisco, California and operates in dozens of metro areas.
How Offerpad works
Offerpad is an iBuyer with a team of licensed agents that makes quick cash offers in as fast as 24 hours on eligible properties. Sellers can also choose their closing dates.
To get started, sellers need to request an offer on their property, which they can do by completing a request form online. The process shouldn’t take more than three minutes and involves entering basic information about the property like your address.
Offerpad generally accepts the following types of properties:
- Single-family, condos, and townhouses
- Built after 1960
- Max. $1 million value
- Max. 1 acre
Upload photos of your home so that Offerpad can make a preliminary assessment on the property. Within 24 hours, the company will send you a cash offer, assuming the home meets its criteria. Offerpad will also include other company selling options designed to help you sell your home. The company will throw in a local move at no additional charge.
Offerpad also lets you list your home in the open market and will lend support cleaning, yardwork, pool services, and more. For any urgent fixes, Offerpad says it will advance sellers the funds so as not to hold up the process.
» MORE: How to Sell Your House in 5 Days
How Opendoor works
To receive your cash offer from Opendoor, begin by entering some basic information about the property, including the address and a video walk-through of the property.
Opendoor favors the following types of homes:
- Single-family homes, townhouses, duplexes, condos
- Built after 1930
- Varying max. lot size
The company could change its criteria for buying a home at any time in response to changing market conditions.
If your home qualifies, you’ll get a preliminary cash offer within 24 hours. Schedule a closing date, and you could receive the sale proceeds within a few days. Opendoor will handle any repairs.
Opendoor also lets you list your home for sale with a local real estate expert if you aren’t in a hurry.