How Does Offerpad Work? iBuyer Company Overview
Disclaimer: iBuyer company program details can frequently change. HomeLight always advises that you check a company’s website for the most up-to-date information.
If you’re planning to sell your home in 2024 — especially as mortgage rates remain high and the seller’s market of 2023 has retreated in the rearview mirror — you may be weighing the possibility of working with an iBuyer such as Offerpad and be curious to learn more about this option. So, how does Offerpad work?
Assuming you’re in a market where Offerpad operates and your home qualifies for one of its programs, you could receive a cash offer from the company in less than 24 hours. People searching for a home can also browse Offerpad-owned listings and work with one of the company’s transaction managers to make a purchase.
When selling to Offerpad, you skip many of the typical hassles associated with listing a home for sale, such as staging, showings, and open houses. Should you choose to accept an offer from Offerpad, you’ll pay a service fee amounting to 5% of the sale price.
While there are other iBuyers operating in the market, for the purposes of this article, we’ll focus specifically on how Offerpad works. We’ll also introduce you to some other potential real estate platforms to explore, such as HomeLight’s Simple Sale website, an additional “sell my house fast” solution for sellers to consider.
What is Offerpad?
Offerpad is considered an iBuyer. iBuyers (short for “instant buyers”) are well-funded proptech companies aiming to make the process of selling a home — along with other real estate challenges — easier to navigate.
Digital pricing tools
While house flippers have been around for decades, iBuyers have only existed since about the mid-2010s. They are defined by their use of algorithmic technology to make quick offers on homes and their ability to provide a mostly online experience for their clients.
Well-maintained homes
Another thing that separates iBuyers from other house-buying companies is the types of homes they purchase. Homes in terrible condition or that need a lot of repairs are unlikely to be a good fit for iBuyers. iBuyers tend to look for properties in good condition that fall within a certain price range, and usually pay closer to market value than most other cash-for-homes options.
