Why sellers look past Offerpad
The fee comes first. Offerpad's service fee varies by market and by house and usually lands between 6 and 10 percent, plus standard closing costs and whatever repair credits come out of the inspection. On a $300,000 house that is $18,000 to $30,000 before the repair credits.
Coverage comes second. Offerpad buys in around 25 metros, mostly in the Sun Belt, with limited coverage in the Midwest. Condition comes third. It wants a house generally built after 1960 that is move-in ready, so a fixer gets turned down.
| Alternative | What it is | Cost to you | Best when |
|---|---|---|---|
| Opendoor | The same model in more markets | Flat 5% | The fee matters more to you than move-out flexibility |
| List with an agent | The open market | Commission | You can wait 30 to 60 days for a higher price |
| Local cash investors | Buy direct in any condition | No fee, priced into the offer | Offerpad declined the house or does not cover your metro |
| Sundae | A bidding marketplace for investors | No fee to you | The house needs work and Sundae covers your metro |
| HomeLight Simple Sale | Routes your house to a single investor in its network | Free to you | You want one more number with little effort |
| We Buy Ugly Houses | A local franchise buys direct | No fee | The house is rough and nothing else operates nearby |
Check Offerpad's site for your ZIP first. Coverage changes, and it decides which of these rows apply to you.
Opendoor: the same model with a lower fee
Opendoor works the way Offerpad does, with an online offer, an inspection, and a revised number, and it buys in roughly 50 markets against Offerpad's 25. Its fee is a flat 5 percent. On that same $300,000 house, 5 percent is $15,000, so the gap to Offerpad's range is $3,000 to $15,000 on the fee alone.
What you give up is the extras. Offerpad includes a free local move within 50 miles, a leaseback if you need to stay in the house after closing, and a closing window that stretches to 90 days. If you are buying your next house and the dates do not line up, those can be worth real money. If your timing is simple, the lower fee usually wins. Request both and compare what you would net.
The fee math on a $300,000 house
Percentages hide how far apart these options are, so here they are in dollars on one house. The figures below are only the fee or commission. Repair credits, closing costs, and the sale price itself still change what you net, which is why you compare full offers and not fees alone.
Two things stand out. Offerpad at the low end of its range is close to a listing commission, and at the high end it costs twice what Opendoor does. Ask Offerpad for the fee in dollars on your house before you weigh anything else.
| Option | Fee or commission | In dollars |
|---|---|---|
| Opendoor | Flat 5% | $15,000 |
| Offerpad, low end | 6% | $18,000 |
| Offerpad, high end | 10% | $30,000 |
| Listing with an agent | Commonly 5 to 6% | $15,000 to $18,000 |
| Local cash investor | No service fee | $0 in fees, the discount is in the offer price |
Illustration from each company's typical fee range. Your actual fee depends on your market and your house.
Listing with an agent: the alternative built for the same house
Offerpad buys clean homes that a buyer could finance as they sit. Those are the same homes the open market pays the most for, since any buyer with a loan can bid on them. If you can live with 30 to 60 days, showings, and a financing contingency, a listing will usually beat an iBuyer on gross price.
A cash offer earns its discount when you need speed or certainty, or when you do not want strangers walking through the house. If none of that describes you, price out a normal sale before you sign anything.
Local cash investors: when Offerpad said no or is not in your market
If Offerpad declined the house, condition is usually why, and condition is what local investors buy. They price off the fixed-up value minus repairs and costs, and offers on houses that need work typically run 65 to 80 percent of after-repair value. There is no service fee, the discount is in the offer itself.
In a metro Offerpad does not serve, local buyers are most of your cash market from the start. Get offers from two or three of them, check each company with your secretary of state, ask for proof of funds, and use a title company you chose.
Sundae and HomeLight Simple Sale
Sundae runs a bidding marketplace where vetted investors compete for your house and you pay nothing. Its coverage is about 25 markets, heaviest on the West Coast and in Texas. It is aimed at houses that need work, so it fits the seller Offerpad turned down more than the seller comparing fees on a clean house.
HomeLight Simple Sale matches you with one investor from its network and returns one cash offer for free. It is a quick way to add a number, and it carries the same limit as any single offer.
We Buy Ugly Houses: for the house Offerpad would never buy
HomeVestors runs about 1,100 independently owned franchises across 47 states under the We Buy Ugly Houses name. They buy distressed property with no fee and usually close in 7 to 30 days, with offers generally at 50 to 70 percent of after-repair value. That is a different product for a different house. It is on this list because of reach, since a franchise often operates in places no iBuyer does.
If you picked Offerpad for the flexible move-out
A lot of sellers choose Offerpad for the closing date more than the price. Before you assume nobody else can match it, ask. Closing dates are negotiable with most buyers, and a post-closing occupancy agreement, where you stay in the house for a set period after closing, is something a cash buyer or a retail buyer can agree to in the contract.
Get it in writing, with the dates and any daily rent spelled out.
Five questions to ask Offerpad before you accept
What is the service fee on my house, in dollars? What repair credits are you taking off after the inspection, item by item? Which closing costs am I paying? Is the free local move available at my address and at the address I am moving to? Can I move the closing date after I sign, and what does that cost?
You are owed a clear answer to each one in writing. The answers are also exactly what you need to compare Offerpad against any other offer on equal terms.
Compare the net on every offer
Line up each offer by what lands in your account. Start with the price, subtract the service fee, the closing costs you are paying, and the repair credits, and compare that number across buyers.
An iBuyer's first number comes before the inspection, so wait for the revised offer before you decide anything.