Offerpad real estate reviews – is Offerpad a good iBuyer

Table of content

• What is Offerpad?
• What is an iBuyer?
• How Does Offerpad Really Work?
• Selling to Offerpad
• Buying a House on Offerpad
• Pros and Cons of Offerpad
• Pros
• Cons
• People Also Ask
• What is offerpad?
• Is Offerpad a reputable company?
• Is Offerpad legit
• Does Offerpad pay closing costs?
• Does Offerpad pay realtors?
• Does Offerpad offer good prices?
• Can I negotiate with Offerpad?
• Which is better Offerpad or Opendoor?
• Is Offerpad still buying houses?
• Is Offerpad a public company?

What is Offerpad?

Offerpad real estate reviews. What is Offerpad? Offerpad is an iBuyer – an online-based real estate company that offers quick cash offers on properties, working with algorithms to determine the best offer they can bring to the table. However, like most iBuyers – their best may be less than you were expecting.

Offerpad was launched in 2015 in Arizona and is the third-largest iBuyer company and the second ever to make its way into the market.

Offerpad is available in the following cities for buyers considering their services. If you don’t see yours here, you’re out of luck:

• Birmingham, AL
• Phoenix, AZ
• Tucson, AZ
• Denver, CO
• Jacksonville, FL
• Orlando, FL
• Tampa, FL
• Atlanta, GA
• Indianapolis, Indiana
• Las Vegas, NV
• Charlotte, NC
• Raleigh, NC
• Nashville, TN
• Austin, TX
• Dallas-Fort Worth, TX
• Houston, TX
• San Antonio, TX

What is an iBuyer?

An instant buyer or “iBuyer” is a modern real estate company model known for using algorithms and technology to buy and sell properties in the least amount of time. For example, you can list a house for sale and get the cash in as little as 24 hours.

You can also buy houses from an iBuyer; you can request information about the available properties on their websites and schedule a tour directly.

Basically, the point of using an iBuyer is to simplify the whole home selling–buying process. The amount of time you will be saving and convenience is what attracts most distressed buyers in their business model. However, they could be leaving cash on the table in exchange for this modern convenience.

How Does Offerpad real estate Really Work?

Both processes, selling a house to Offerpad, and buying a home from them, begin with going to their website and utilizing their services.

Selling to Offerpad

The selling process using Offerpad iBuyer consists of 6 easy to follow steps:

1. Submit your information:

As a seller, you would have to complete a questionnaire with information about your property; this is just basic information the company will need to determine how much they will offer you for your home.

The online form will ask you to provide the following information:

• Your property’s area
• Age of the home
• The layout of the house
• Countertops and flooring type
• Appliance details
• Landscaping
• Permitted and unpermitted additions
• Any in-process renovations
• If you’re working with an agent
• Closing date of your choice
• Photographs of the property you’re selling (not mandatory but highly recommended that you submit professional-looking photos as they will help Offerpad to give a more accurate price estimate)

After you submit your information, if the Offerpad team decides your house meets their criteria, you will receive an initial cash offer in around 24 hours.

1. Offer calculation:

Once Offerpad has all the information you provided, it uses its Automated Valuation Model (AVM) algorithm to determine the house’s value; then, the technological output is reviewed and changed (if there’s the need to) by their in–house experts.

After the adjustments are made, the final offer is determined.

1. Offer acceptance:

Now that you know the initial cash offer, you will have only two choices. Whether to accept it or reject it.

The not-so-good thing is that their offer will not be negotiable, unlike with traditional real estate. You will have to take it or leave it, and you have only four days to do so.

If you accept the offer price, then you can move ahead and select from the additional features Offerpad has, like your closing date and their free local move service. And now, you can sign your contract online and proceed to the next step.

However, if you choose to decline their initial cash offer, you won’t be charged for it, and you can walk away from the process to select another selling avenue.

1. Home inspection:

Your inspection period will begin a day after you sign a contract with Offerpad, and, within 15 days, an official Offerpad inspector will be sent to your house. This inspector will check your home just as in a traditional sale; for about 2 to 3 hours, they will be looking at every inch of your house, looking for things that could be wrong or done improperly.

The home inspector will make a list of the repairs you’ll need to do, and even though the inspection costs are included in your service fee, is important to mention that repairs are not.

Once you have the inspection’s final report, you have three options:

• Do the repairs yourself: For this, you can hire a contractor and fix all the issues; still, you will have to prove it to the company by sending the documentation, photos (before and after), receipts, as well as the contractor’s license.
• Deduct the repair’s cost from the selling price. You can pay for the cost of the repairs by subtracting the value from the initial cash offer.
• Deny Offerpad the repairs: It can happen that you don’t agree to the amount of money requested for the damage repairs. In this case, you can say so, but by choosing this option, Offerpad will most likely back out of the sale. Then the contract will become void, and you can back out of the deal without paying the cancellation fee.

1. Receive an updated offer:

After the home inspection is completed and if you decide to pay for the repairs, Offerpad will provide you with the estimated cost of completing them. They could even update their offer if they think that your property doesn’t meet its criteria.

However, if you want to reject the updated offer, you will also have four days to do so, and you will be charged with an Offerpad cancellation policy fee that equals 1% of the offer price.

1. Closing:

Now that you have dealt with the inspections and the repairs, you can schedule your closing date. But just before closing the deal, an Offerpad representative will visit the property and examine it to make sure the repairs have been made and are completed. If there’s a problem with the demanding repairs, it might delay the closing.

On the day of closing, you’ll go to the title company or attorney’s office to examine and sign the documents. Once this is done, the deal will be closed, and you will receive a check.

If by the time you close you’re not ready to move, you can use an option called “Extended Stay” that allows you to remain in your home a bit longer (3 days), and for an additional fee, you can stay up to 90 days.

If your new home is within 50 miles from the one you sold to Offerpad, they offer to pay the moving costs of up to 13,000 pounds of belongings.

Buying a House on Offerpad

There are also Offerpad homes for sale, but you’ll need to verify buying from Offerpad reviews to see if it’s worth it. They sell the homes they purchase to new buyers at a higher price after they make some renovations so that you can buy directly from them. One of their agents will act as your buyer’s agent (if you don’t already have your real estate agent).

However, like in most transactions, it’s imperative for you to do your own research and look for Offerpad real estate reviews. Comparing your options for the best-suited company is ideal. You can look for Offerpad reviews in Florida, see if there are complaints from previous Offerpad sellers, etc.

To buy from Offerpad:

1. Get prequalified for a mortgage:

You will need to gather all your credit score information, financial story, and current debt. Then a lender will examine your data and suggest which home loans are a better fit for you.

There is an Offerpad mortgage partnership with Loandepot.

1. Browse homes online:

You can browse Offerpad real estate listings on the website; filter out the requirements you might have like the area where you want your house to be located, the size of the property, number of bedrooms, etc.

One of the most different and innovative features that some of Offerpad’s real estate competitors might not offer is their Instant Access. This is the ability to go visit a potential home without necessarily needing a real estate agent. Through their app, you get an entrance code to visit the properties any day of the week between 6 AM-8 PM.

1. Download the app:

For you to unlock Offerpad properties you’re interested in, as well as the Instant Access feature you may have to download the official Offerpad app.

1. Make an offer:

If you found a property you feel happy about, it’s time for you to go ahead and make your offer. Note that you don’t necessarily need to have a real estate agent to make an offer and enter into a legal contract. However, if you already have an agent, Offerpad will provide him/her with a 3% buyer’s agent commission.

If after Offerpad reviews your offer and decides they accept it, you will have to work alongside their third–party lender to successfully complete the deal.

1. Closing:

When buying a home from Offerpad, you have the freedom of scheduling a closing date that is the most convenient to you.

Pros and Cons of Offerpad real estate

Like with any business, there are good and bad things, not one is perfect. Some of the available online reviews of Offerpad previous clients show the following pros and cons:

Pros

• They provide a very fast cash offer, which can be an essential factor for someone who might be in a rush when selling a house.
• Offerpad also offers the option to take away all the responsibilities that come with the home selling process, for example having to host open houses and showing buyers around.
• You can choose your own closing date; as long as it is within 90 days from the day you accept and sign the offer.
• They offer a free local move to their home sellers.
• They have the extended stay feature, so you don’t have to be in a hurry when settling in your new house.

Cons

• Some Offerpad reviews claim that when selling their house at their “fairest price,” it was usually lower than the amount you could get if you were to sell your house through a traditional method.
• The reason why you get less from your property may be because of Offerpad’s high fees, which are between 7% – 10%, and their home repair deductions.
• Even though Offerpad claims to provide an accurate cash offer from the start, they still get to charge you for repairs, or they can adjust your cash offer. Since you sign a contract before they do the inspection, you don’t really know exactly how much money you’ll receive for your property at the end of the transaction. It may come across as if there are Offerpad hidden fees.
• Their non-negotiable offers are definitely a turnoff for their clients since they offer a “take it or leave it” kind of deal.

Overall, using Offerpad turns out to be easy and not to mention fast, but also you may be losing money due to service fees, repairs, etc. Selling a house to Offerpad is a great option for distressed sellers that don’t have the time to market online for a short amount of time.

People Also Ask

What is Offerpad real estate?

Offerpad is a direct home buyer and seller online-based company that offers almost instant cash offers to their customers.

Is Offerpad real estate a reputable company?

Yes, Offerpad has shown to be a reputable company that has proven to buy homes for cash, improve them, and resell them for a higher amount of money. Although some may say, there is a serious Offerpad ripoff. When considering Offerpad reviews Florida there aren’t a lot of resources that pinpoint location but you’re able to determine if they have been beneficial to the area overall.

Is Offerpad legit

Offerpad is a legitimate real estate business whose services include buying and selling real estate properties. Being a newly public company, their financial information is available to the public and trading on the NYSE.

Does Offerpad pay closing costs?

Offerpad fees don’t include closing costs; you will be charged for them as a traditional sale. Closing costs typically include:

• Property taxes
• Appraisal fees
• Homeowner’s insurance
• Mortgage insurance

Does Offerpad real estate pay realtors?

Yes, they offer a 3% agent referral fee on eligible properties.

Does Offerpad real estate offer good prices?

You would definitely receive a lower offer for your house with Offerpad than on the open market. However, the whole process takes very little time, and that’s why it has become a successful type of business with people who need or want to sell fast.

Can I negotiate with Offerpad?

There have been Offerpad complaints from customers about their non-negotiable offers. If you think they made an offer too low for you, you are not in a position to renegotiate.

Which is better Offerpad or Opendoor?

When talking about offerpad vs pen door, there are many similarities with a couple of significant differences. For example, Opendoor charges half in services fees compare to Offerpad; not to mention that with Opendoor, you sign your contract after knowing the exact amount of money you will get, and with Offerpad, you sign without even knowing for sure. Offerpad vs opendoor really relies on your needs aligned with a pro and con list to decide which option is best for you.

Is Offerpad real estate still buying houses?

Yes, according to their website Offerpad is currently buying homes in some metro areas.

Is Offerpad real estate a public company?

Yes, Offerpad is a public company headquartered in Gilbert, AZ under the stock ticker OPAD on the NYSE.

Even when Offerpad is a top-rated online-based real estate company, if your goal is to sell for the maximum dollar from marketing exposure on over 750 websites, Richr is the free option that connects you with buyers waiting for your home to hit the market.