Offerpad Review (2024): 5 Things You Need To Know Before You Buy

Selling and buying a home can be quite a hassle, especially if you’re in a hurry. But guess what? There’s a game-changer in town: Offerpad.com. The company launched in 2015 and currently operates within 11 states.

Offerpad is part of a breed of real estate software categorized as iBuyers. iBuyers use algorithms to simplify the property buying and selling process.

But here’s the thing: they’re still pretty fresh in the scene and only made 1.3% of home sales in 2022. However, home buyers and sellers are slowly starting to catch on. For instance, not too long ago, Offerpad sold over 1200 homes and purchased 2025 others in just a single quarter.

To learn more about this company, read our in-depth Offerpad review.

• What is Offerpad?
• How Does Offerpad Work?
• Offerpad Fees & Costs
• Offerpad’s Featured Markets
• What Types of Homes Can You Sell on Offerpad?
• Pros & Cons of Offerpad: Is it Worth It?
• Final Thoughts

What is Offerpad?

Offerpad.com is an iBuyer or an online real estate company, and it’s here to make buying and selling homes a seamless affair by maximizing technology. Based on our research, the company was founded in 2015 by a group of real estate pros who, familiar with the stress of the traditional home buying process all too well, decided to come up with a better solution.

Source: Offerpad.com

Offerpad has since grown out of Chandler, Arizona, and operates in 11 southern states. So, what exactly does Offerpad do? The service wears a few hats, but primarily:

• Buy homes: Offerpad buys properties directly from homebuyers through the Offerpad Express program. Unlike traditional home buying processes, selling your house to Offerpad is incredibly fast and might come with additional benefits, such as free moving services if you meet specific requirements.
• Selling homes: Once Offerpad has those homes, it lists and sells them through its websites. The company also lists its properties on open-market real estate websites like the MLS.
• Listing homes: If the offer Offerpad dishes out doesn’t fill your cup, no worries. They can hook you up with an Offerpad agent to help you list your home on the company’s open market program, Offerpad Flex. Home sellers who choose this route get up to 90 days to decide whether to roll with Offerpad’s offer or go their own way.

So, whether you’re looking to buy, sell, or list, Offerpad.com has something up its tech-savvy sleeve to help you out. We’ll dive deeper into the details in our reviews for Offerpad, so stick around to learn more about this resilient iBuyer company.

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How Does Offerpad Work?

Offerpad generally uses technology, algorithms, and human expertise to streamline the home buying and selling process. They purchase properties directly from homeowners and list them on their website and other marketing platforms where buyers can view, book inspections, and purchase them.

New home buying with this iBuyer is pretty straightforward. If you want to buy a property from them, they’ll hook you up with one of their partner local realtors, who’ll serve as the buyer agent. You’ll also get notifications on new Offerpad listings. Additionally, you may maximize the iBuyer’s home loans program, which, depending on your location, may grant you a loan of up to $1,000 to cover property closing costs.

On the other hand, if you’re selling a home to Offerpad, they offer two options: Offerpad Flex and Offerpad Express. Here’s the scoop on how these programs work:

Offerpad Express

Express is Offerpad’s speedy home selling program, where you can score a cash offer for your property in as little as 24 hours. To kick things off, you’ll need to request an offer. Simply get on the company’s website and spill the beans about your property, from its location to some photos. You may even set up a virtual walk-through with one of Offerpad’s team members. The more details you give, the better, as it helps the algorithm better assess your home’s value.

1. Offerpad review: Once you submit property details, Offerpad’s algorithm takes 24 hours to crunch the numbers and whip up a cash offer. Note that this offer is only valid for four days, and while you may renew it, you risk getting a lowerball offer than the initial one.
2. Accept or list: After 24 hours, Offerpad sends you a home offer through email. Unlike some iBuyers who allow you time to mull over it, Offerpad expects you to make a quick decision and accept or reject the offer from the word go. But don’t worry; you’re not entirely backed into the corner. If you’re curious about what other buyers might offer, you can request to list your home. This is where Offerpad Flex comes in (more on that later). Plus, you get to pick the closing date and choose one up to 90 days out, giving you time to chew things over. If you still need more time after 90 days, you may request a timeline adjustment. But if you’re down for the initial offer, the selling process proceeds to the next stage.
3. Inspection: Once you give the green light to that first purchase agreement, Offerpad will send one of its reps to inspect the property. A heads up: they might tweak the initial cash offer based on what they find during the inspection. If you’re all good with their assessment results, Offerpad will complete the necessary repairs on your behalf and take the cost out of your final cash offer. Alternatively, you may handle the repairs as long as you hand in the receipts. Not on board with the inspection results or cash offer adjustments based on inspection results? You can back out of the sale, or Offerpad may do. But if you’re feeling good about everything, on to the next step!
4. Closing: If you’re still loving that cash offer and all is well with the inspection results, Offerpad will send their rep once more to confirm the repairs and renovations are up to snuff, and the property is in tip-top condition. Any additional maintenance task must be squared away before the official closing. Now, if everything checks out, you can pack your bags and move out, and here’s the good part: Offerpad will cover the moving costs for up to 13,000 pounds of your stuff as long as you’re moving locally (within 50 miles). If you’re not quite ready to let go of your once beloved abode, Offerpad offers an extended stay option, allowing you to hang around anywhere from three to 90 days at an extra fee.

Offerpad Flex

Do you like Offerpad’s cash offer but would love to weigh your options? Offerpad Flex is the program for you. It’s the iBuyer’s official listing program, and it allows you the best of both worlds since you can explore your options while still having Offerpad’s cash offer as your ace in the hole. Check out how it works:

1. Start with a Cash Offer: Just like with Offerpad Express, you kick things off by providing details about your property. Offerpad then cooks up a cash offer for your home, which you can put on hold, and choose to list your property in the open market through Offerpad Flex.
2. Agent Assignment: Once you choose a listing, the company dips its hand into its local real estate agent partner’s jar and hooks you up with a listing agent. This agent will handle the hard work on your behalf to get your property “buy-me” ready. They’ll take care of things like home staging, showings, professional photography, and even 3D mapping to improve your property’s appeal among buyers.
3. Optional Facelift: Do you feel like your home needs a little extra renovation to attract high-ticket buyers? Offerpad is often willing to cover costs like new paint, flooring updates, and more. Depending on the adjustments needed, the agent will oversee property cleaning, yard work, and pool services. The resulting costs are then deducted from your final selling price. But keep in mind this step is entirely optional.
4. Selling & Closing: If you find a buyer on the open market, they will typically work with their agent, and you'll work with the Offerpad partner agent to seal the deal. Your assigned agent will guide you through every step, from drawing up contracts to closing. Be aware that Offerpad’s and the agent’s service costs will be deducted from your final home sale price. If, for any reason, you don’t secure a buyer, Offerpad gives you a 90-day window to accept their initial cash offer.

Read Also: Home Appreciation Calculator: How To Estimate Your Home Value 

Offerpad Fees & Costs

Offerpad’s convenience comes at a cost. Here’s how they price their services:

Source: Offerpad.com/pricing

Offerpad Express Costs: When you sell your home directly to Offerpad, expect to pay about 5% in service fees and 1% on closing costs, which brings the cost to about 6% of your property’s final sale price. The 5-6 % fee covers the various costs Offerpad will incur to resell your home. The fee varies depending on the purchase expenses, such as repair costs, utilities, maintenance, and buyer’s agent commission.

Offerpad Flex Costs: For Offerpad Flex, offerpad deducts a 6% buyer and listing realtor commission and an additional 1% estimated for closing costs.

Does Offerpad Pay Closing Costs?

No Offerpad does not foot closing costs. The seller’s closing cost is typically deducted from the final offer.

However, if you buy your home through Offerpad, you may finance the closing costs through the Offerpad home loan program. Keep in mind that eligibility for the home loan program depends on your location.

That said, can I cancel Offerpad? Yes, but a 1% cancellation fee may apply depending on the circumstance. 

Offerpad’s Featured Markets

iBuyers are still a relatively infant concept, so the services aren’t quite widespread. Offerpad, for example, primarily operates in the southern part of the country. Thankfully, if you’re in this part of the country, the iBuyer has a pretty widespread presence. It’s exceptionally well cemented in Arizona Phoenix, where it operates in over 20 areas. Besides Arizona, here are locations where Offerpad buys and sells homes:

• Atlanta, Georgia
• Austin, Dallas, Houston, and San Antonio in Texas
• Birmingham, Alabama
• Charlotte and Raleigh in North Carolina
• Denver, Colorado
• Indianapolis, Indiana
• Jacksonville, Tampa, and Orlando in Florida
• Las Vegas, Nevada
• Nashville, Tennessee

Read Also: 17 Best Cities To Wholesale Real Estate

What Types of Homes Can You Sell on Offerpad?

Our review on Offerpad wouldn’t be complete if we didn’t tell you the types of homes you can sell or list.

Note that iBuyers like Offerpad have strict property-buying preferences because they want the inventory to move fast. While the preferences vary from one iBuyer to another, Offerpad generally invests in properties in suburban areas with a moderate price range. Their portfolio features:

• Single-family homes in good condition
• Condos and townhouses
• Homes with clear titles and proper documentation
• Properties less than 70 years old
• Homes sitting on 1-acre or smaller lots
• Properties priced below Offerpad’s maximum market value

So, if your property is a vintage beauty over seventy years old or needs major structural work, you cannot sell it to Offerpad. But don’t worry; you can still list it with an Offerpad realtor to speed up the sale.

Read Also: The 5 Best Places To Flip Houses

Pros & Cons of Offerpad: Is it Worth It?

Now we are at the point in our Offerpad review where we highlight the pros and cons to help you determine whether it’s the iBuyer you need to get that home off your hands or buy one. 

So, is Offerpad worth it? Is Offerpad legit? Check out the pros and compare with the cons to make up your mind.

Offerpad Review: The Pros

• A speedy closing process: Selling and buying a home is traditionally time-consuming, but with Offerpad, the process is fast. If you’re selling directly to them, they generate cash offers in as little as 24 hours, and if you accept, you can often skip showings and close the sale in days or weeks rather than the months it can take with traditional sales. Buying a home from them is equally as fast since they offer a mix of new homes and ready-to-move-in renovation properties.
• Convenience: Another significant perk of selling with Offerpad is the convenience you enjoy. Whether you sell directly to them or decide to list with Offerpad Flex, you won’t have to worry about staging your home, hosting open houses, or dealing with the uncertainty of waiting for a buyer. It's a more hands-off approach.
• Certainty: With Offerpad, you always have a firm cash offer on the table, which means you know exactly how much you’ll receive for your home. Even when you list your property with Offerpad Flex, the company still maintains its offer, meaning if you miss a buyer on the open market, you have a backup offer. There's no worrying about a deal falling through due to financing issues or inspections.
• Flexibility: Offerpad offers flexible closing timelines, allowing you to choose a date that works best for you. They offer up to 90 days or more, which can be particularly advantageous if you’re coordinating the sale of your current home with purchasing a new one.
• Marketing, repairs, and renovations: Offerpad assigns you their partner realtor to handle necessary repairs and renovations after an inspection. The agent also handles marketing if you list on Offerpad Flex, saving you time, money, and hassle.
• Financing options: Offerpad runs a home loan program through which eligible buyers can bundle rewards to get up to $1000 in cash credits. They’re also into mortgages. If you buy an Offerpad home with their mortgage, they’ll lower the interest rate on your payments. And the cherry on top? Based on Offerpad mortgage reviews, the company lets home buyers lock in the best interest rate for up to 90 days, keeping it from going up between mortgage application and closing.

Offerpad Review: The Cons 

• Home pricing: Offerpad cash offers may be instant and closing fast, but they’re typically lowball compared to what you might get on the open market. This is because they later have to resell your property at a profit and price it below their maximum market value.
• Mandatory initial offer: Whether you intend to list or not, you must sign a binding agreement on the initial offer. If you decide not to continue with the sale for reasons other than repair costs, Offerpad imposes a cancellation fee equal to 1% of the initial cash offer amount.
• Limited locations: Offerpad operates in select markets
• Market timing: Offerpad may adjust its offers based on the market conditions. As a result, you might receive a lower offer if the real estate market is done when you’re selling.

Final Thoughts On Offerpad 

As an iBuyer, Offerpad is at the forefront of using technology to streamline the home buying and selling process. The company provides a seamless experience for buyers by offering move-in-ready properties. They even offer a home loan program to save you money on closing costs and mortgage rates. For home sellers, Offerpad Express and Flex significantly simplify the home selling process.

While fees are associated with their services, their speedy closing process, convenience, and certainty make the cost worthwhile. In a nutshell, Offerpad is a compelling option if you value comfort, speed, and certainty in real estate transactions. However, it's essential to remember that with the power of the MLS, you don't need to spend on Offerpad or other iBuyers.

Unlock the secrets of finding consistent deals on the MLS with our FREE training on wholesaling and house flipping. Dive in now and gain an advantage in your real estate journey!

Be sure to also check out Offerpad.com reviews from previous buyers and home sellers to determine if it's indeed the program for you!

*Disclosure: Real Estate Skills is not responsible for the information provided by Offerpad or on its respective website. Offerpad is an independent company which provides real estate services to investors. Real Estate Skills trains on using Offerpad and the benefits of using the service but is not responsible for the content it provides.