What is Offerpad?
Like iBuyer, Offerpad provides three main services to home buyers and sellers in its marketplaces.
- Selling your home to Offerpad: With Offerpad Express, the company offers you all cash and buys your home directly from you. This fairly standard iBuyer offer includes perks like free moving services and the ability to re-let your home up to 90 days after closing.
- Listing your home with Offerpad:If you want to see what deals you can get from open market home buyers in addition to Offerpad's all-cash offer, you can work with one of Offerpad's partner agents to list your home with Offerpad Flex. In most cases, you will have up to 90 days to get your home off the market for an Offerpad cash offer.
- Buy a house from Offerpad. Properties purchased by Offerpad are listed on real estate websites, although iBuyer offers discounts to home buyers who work with one of its partner Realtors.
If you sell your home on Offerpad, iBuyer requires you to sign a binding purchase agreement based on your initial offer. With most iBuyers, you don't make a firm commitment until you receive your final offer, which includes condition and repair adjustments. After signing with Offerpad, you will pay a cancellation fee equal to 1% of the offer amount if you decide not to proceed with the sale for any reason other than a repair adjustment. If Offerpad decides not to proceed with the transaction, no money is owed to either party.
As of August 2021, Offerpad buys and sells homes in 11 states in the following metropolitan areas:
- Alabama. Birmingham.
- Arizona. Phoenix, Tucson.
- Colorado. Denver:
- Florida. Jacksonville, Orlando, Tampa.
- Georgia: Atlanta.
- Indiana. Indianapolis.
- Nevada. Las Vegas.
- North Carolina. Charlotte (including surrounding areas of South Carolina), Raleigh.
- Tennessee. Nashville.
- Texas. Austin, Dallas/Fort Worth, Houston, San Antonio.
» MORE. How to sell your home to iBuyer
What kinds of homes does Offerpad buy?
In addition to being in an area where Offerpad operates, your home must meet certain criteria. These vary by market, but iBuyer offers some general parameters for the types of homes you will and won't buy.
Offerpad generally buys homes that…
- They are single-family dwellings, including townhouse types such as condominiums and townhouses.
- They are not older than 60-70 years.
- They are on 1 acre or less.
- Their price is below Offerpad's maximum value for their market.
Offerpad does not buy homes that…
- He is over 70 years old.
- Whether manufactured, modular or mobile.
- It does not have a clear title.
- They have significant conventional problems such as foundation or structural problems.
If your property doesn't meet the cash offer guidelines, an Offerpad representative can give you the opportunity to list the home with an Offerpad real estate agent.
In each market, local agents help determine each home's value and resale potential that Offerpad can: iBuyers make money selling homes, not holding on to them.
How does Offerpad work?
Offerpad offers two main services: Offerpad Express, a more traditional iBuyer offering, and Offerpad Flex, a hybrid between selling with an agent and selling to iBuyer. You can also buy a house on Offerpad. These services generally work like this.
Express Offer Vault
1. Request an offer
You will answer a series of simple questions about your family and provide your contact information. The form also allows you to upload photos of your home or schedule a time to take a short virtual tour with an Offerpad representative. Although optional, providing details can help you get an offer that more accurately reflects the value of your home.
2. Review your offer
Offerpad says it will send a cash offer for your home via email within 24 hours. Offer expires four days after email is sent. You can apply online to renew an expired offer, but it doesn't have to be for the same amount as the first offer.
3. Accept the offer and choose a closing date
Although it may change later, you must formally accept Offerpad's initial offer by signing a purchase agreement in order to proceed with the sale. This differs from other iBuyers where the initial offer is considered preliminary and not binding. You can choose a closing date of up to 90 days from the date of acceptance of the offer. If it turns out you need more time than you originally anticipated, you can work with your Offerpad representative to adjust the schedule.
4. Get an inspection
After signing the purchase contract, it will enter the verification period. Offerpad will send someone to your home for an inspection lasting about two hours. (You have to be there for it). Offerpad then gives you the results of the inspection, basically what the company thinks needs to be fixed. Please note that this appraisal is not the same as a standard home inspection or appraisal. You can then choose to have Offerpad complete the repairs (fees are deducted from the final amount received), do them yourself (providing Offerpad with the contractors' receipts), or simply say you won't accept the repairs. – which may result in Offerpad going out of business. If you do not agree with the amount required for repairs or adjustments to the offer based on the condition of the home, you may withdraw from the sale without paying the 1% cancellation fee.
5. Close and move
Approximately two days prior to closing, an Offerpad representative will conduct a final inspection to ensure that repairs are complete and the property is in the same condition as documented in the inspection. If additional work needs to be done, you can delay the closing.
If you won't be ready to move when it closes, you can use Offerpad's Extended Stay option to stay in your home a little longer. Up to three days are included; you can stay for 15, 30, 60 or 90 days for an additional fee.
If you move within 50 miles of a home sold on Offerpad, the company will pay up to £13,000 in moving costs for properties up to 2,800 sq ft.
1.Request an offer
2. Consider making repairs
3. Sell to a buyer or take the cash offer
When you're working with a real estate agent, you may naturally assume that they have a fiduciary responsibility to you — in other words, that they will act in your best interest. But whether you're working with an agent or an iBuyer, be sure to read any representation contracts before you sign. Offerpad's terms of service make clear that unless it is explicitly stated in a contract signed by the company, Offerpad is acting in its own interest in any transaction.
Even if you're not selling a home, you can buy a home directly from Offerpad. One of your local agents will act as your buyer's agent. The company notes that Offerpad buyers are the first to receive Offerpad listings, a welcome boost in a booming real estate market. In some locations, Offerpad provides up to $1,000 in closing costs if you finance the purchase with Offerpad home loans.
You can search for Offerpad listings on their website, although you'll find Offerpad-owned homes on other real estate listing sites.
All iBuyers pay for their services. Here's a breakdown of Offerpad's costs:
- Offerpad Express: 5% of final sale price.
- Offerpad Flex. 6% of final sale price to cover realtor commissions from both listing agent and buyer's agent.
- Repair. costs will vary depending on what is found during the Offerpad inspection.
And like any real estate transaction, you'll be on the lookout for closing costs. This may include taxes or transfer fees, escrow fees, real estate attorney fees, pro-rated property taxes or HOA fees, and title-related fees. If you initially hired a listing agent and then switched to Offerpad, you will have to pay the agent out of pocket.
» MORE. What are the closing costs?
How to get started with Offerpad
To get started, visit the Offerpad website and enter your address. You don't have to choose between Offerpad Express (sold to Offerpad) and Offerpad Flex (listed with Offerpad) right away, although if you already know you prefer one over the other, scroll down and click learn. more” under Express or Flex. Either way, you'll fill out the same basic form with your home information and receive a cash offer within 24 hours.