Should You Use Offerpad to SELL Your House?
What is a Offerpad?
Offerpad is simply just another iBuyer real estate investor company that buys homes directly from homeowners. When an Offerpad representative visits your home, the pitch usually starts with how they will save you the trouble of cleaning your home, waiting for offers, or experiencing surprises at the closing.
Offerpad didn’t just randomly select your home. They rely on algorithms and data to determine their offer price and charge aggressive commissions and fees to make a hefty profit off you.
How Does Offerpad Work from the Selling Side?
Using Offerpad to sell your house gives the home owner the luxury of time and ease. Who wouldn’t want to get an immediate offer without prepping or holding an open house, right? Below is a brief list of what to expect:
- You reach out to Offerpad online and provide them information about your home’s condition. Once you’ve completed their form, you then request an offer.
- After requesting an offer, Offerpad gets to work using their top-secret algorithm data to determine how much they’re willing to offer you for your home.
- If the offer is acceptable, then you’ll need to provide Offerpad with a closing date.
- Next, Offerpad will perform an on-site inspection to determine the home’s actual condition. Most likely they may provide you with the opportunity to make repairs. In the case you are unable or unwilling to make repairs, they will usually deduct money from their original offer price.
- Once the sale closes, Offerpad will charge you a fee that ranges between six and ten percent of the sales price.
Is Offerpad a ripoff?
Offerpad claims that using their services will result in a higher savings for the seller because of the higher cost of doing business with a traditional Arizona broker.
However, according to a MarketWatch report, fees and other costs from iBuyers net about 11% less than other sales completed on the open market. Remember, Opendoor needs to cover their risk of buying your home before they procure another buyer.
For example, 11% of a $500,000 home is $55,000. That’s $55,000 you could be losing on the sale of your home. It’s up to you to decide whether it’s worth it to pursue a short cut in time and ease of the iBuyer real estate system.
Addressing the ripoff question, you must think of Offerpad as an investor that is incentivized to give home owners a lowball offer – even though they know the home will sell for more. The 6-10% Offerpad fee is also greater than the traditional agent commission of 6%. Keep in mind, traditional agents are currently providing listing discounts to save you even more money.
What about closing costs? You guessed it. The seller is still on the hook for those as well. According to Offerpad, “Sellers are responsible for certain closing costs—just like any traditional sale. These fees may include title insurance, escrow fee, HOA transfer fees, taxes, document transfers and other customary fees.”
Here are the top disadvantages for using Offerpad to Sell your house:
- Very high service fees (Offerpad fees are between 6-10% of sales price – in addition to the traditional closing costs)
- No way to negotiate. It’s either take the offer or don’t
- You are not represented by an experienced agent for advisement.
- Lowball offers.
Is Offerpad a good deal?
Who will benefit the most from using Offerpad? There are homeowners who value time above all else – even if it means making less money in the end. Offerpad could work out for some homeowners, such as an out of state relative inheriting the house. In this situation, the seller may just want to sacrifice some money during the sale if it means not losing time from work or just want to sell as quickly as possible without any perceived hassles.
Here are some recent Offerpad Reviews
There are many third-party review websites out there showing that Offerpad has not lived up to its stated reputation of a higher level of customer satisfaction. As of June 2021 Offerpad has a 2.0/5 Star rating on Yelp and 2.0/5 Stars on Sitejabber. Here are some Offerpad reviews:
“…They have turned this buying experience into a disappointment for my family. And it is clear that they have no regard for potential buyers. Thanks Offerpad. You made this such an ugly experience!” – Barara G.
“…Actual offer came in 38k below the mailer estimate that enticed me to reach out. Hard no. Advise others to steer clear.” – Henry G.
“…Offerpad claims to help you with the whole process but this is a classic bait and switch move by the company! Do not use them they do not offer the same full professional services of a Real Estate Professional Agent. – John S.
“…If you want to get out of your home and start a new life somewhere else, Offerpad is the way to go but if you want to leave with a lot more pocket change, be patient and sell it the traditional way. – Steve W.
Sell Your Home with a Local Experienced Agent
Offerpad often states in their marketing ads that it’s a hassle to deal with traditional Realtors to sell your house. This is clearly not the case. The industry is rapidly changing. Finding a great Realtor who can quickly sell your home has become quite painless over the years. Working with a knowledgable and experienced Realtor in the Phoenix Area like Troy Elston with West USA Realty to sell your home is one of the best experiences you could ask for.
Selling a home is often one of the most important transactions someone will make in their lives. Take time to consider whether it’s worth the risk to work with a company that has a lukewarm reputation. If it’s a pair of pants, the risk is low. But when it’s your home, a bad experience can mean losing thousands of dollars.
Offerpad Homes for Sale
If you do plan to buy an Offerpad listing, you don’t have to go it alone. Hire an experienced buyer’s agent like Troy Elston who can aggressively negotiate the lowest price possible an provide you with excellent service and knowledge. We’ve included some current Offerpad listings here for your review.
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Have you been thinking about BUYING or SELLING a home in the Phoenix AZ Area? I’d love to have an opportunity to sit down and speak with you about how I can provide you with everything you need to make a stress-free transition into your new home.
Let’s get started today! I can’t wait to meet you.
About the Author: The above article, Should You Sell Your House with Offerpad? was written by Troy J. Elston, a licensed Realtor at West USA Realty, the premiere real estate brokerage based in Peoria Arizona. With years of experience in the real estate industry, Troy produces stunning results for home buyers and sellers. If you’re thinking of BUYING or SELLING a home in the Phoenix Area, Troy would love to share his knowledge and expertise with you.