Need to sell your home fast? A quick online search will return ads and websites for multiple cash buyers in your area — among them, Opendoor and Offerpad. Both promise to buy your home for cash, and close quickly. But beyond this similarity, how do they stack up? Not all cash, or iBuyers, are the same. Some charge higher fees, or offer repair and late checkout options. Others perform a home inspection while their competitor skips one. Even though you may be in a hurry to sell, your home is likely your biggest asset. It’s worth it to take the time to research these companies to find the best one for your needs. Opendoor vs. Offerpad, find out how these companies match up. Opendoor is the largest iBuyer (instant buyer) in the nation. They make cash offers on houses, typically within 48 hours. They also offer a home listing option for home sellers. If you sell to them, you can skip making repairs, cleaning your home, and keeping it clean for showings, and staging. They offer a quick closing process designed to suit home sellers who need a fast transaction or just don’t want to be bothered with the fuss of listing. After providing information about your home through an online questionnaire, you’ll receive a preliminary offer. If you proceed, you can choose how you’d like to complete the required home assessment. You can meet with an Opendoor representative, make a live video call, or upload videos of your home with a self-guided walkthrough. Their website explains that “the walkthrough and assessment are free and come with no obligation to sell.” Opendoor will let you stay in your house up to 17 days after you close through their Late Checkout program. The company also sells homes that they purchase. Offerpad is the second-largest iBuyer company in the country. They promise you a cash offer for your home in just 24 hours. Like Opendoor, they also offer a home listing option for sellers. Special perks of working with Offerpad include three extra days to stay in your house after close and they’ll pay for a local move. When you contact Offerpad for an offer they ask you a few questions and have you upload photos of your house. Like Opendoor, they typically perform a home inspection before finalizing their offer. They also give you the option to either take their cash offer or put it on hold for 60 days while you try to sell on the open market. Offerpad also sells the homes they purchase. On the surface, these companies have many similarities. But their differences could make a difference in the success — and profits — of your home sale depending on your selling and moving objectives. Opendoor and Offerpad have a similar fee structure whose main difference is if you decide to list with them or cancel an accepted offer. If you accept Offerpad’s Express Cash Offer, you’ll pay a service fee that is 5% of the offer price plus 1% in closing costs. Their Flex List with Confidence, which allows you to list and keep their offer on hold, charges 6% plus an estimated 1% in buyer’s concessions. If you cancel with Offerpad, however, you’ll pay a fee that’s 1% of their offer price. Opendoor charges a 5% service fee and an estimated 1% for closing costs. Their fee if you list with them, however, remains at 5%, unlike Offerpad which adds a percentage point. They also estimate 1% in seller concessions if you list with them, but there’s no cancellation fee. If you’re selling in distressed or urgent circumstances, you might not have a place to go lined up after closing. In normal home sales, many real estate agents are negotiating rent-back periods for home sellers. Offerpad will let you stay for three days after close. In contrast, Opendoor extends a “Late Checkout Program” to home sellers who take their cash offer. If you take advantage of this program, you can stay in your house up to 17 days after closing. Opendoor charges a daily rate which is calculated based on: home value, utility costs, and days of rent-back. They also hold back a $1,000 security deposit back from your sale proceeds, keeping it in escrow and releasing it once you’ve moved out. Want to make a few repairs to your home before selling? Sometimes cosmetic fixes or minor repairs could increase the offers you receive, putting more money in your pocket. But it can be hard to come up with the money for these repairs if you’re already struggling or your money is tied up in other aspects of your moving plans. Offerpad seeks to solve this problem by extending a home improvement advance to homeowners. They advance the funds, interest-free and requiring no cash deposit from you, to paint, install new flooring, fixtures, or countertops, and buy new appliances. They also offer free pre-listing services such as: carpet cleaning, house cleaning, pool services, handyman services, and landscaping. When you sell, they deduct the costs from your sale proceeds. If you accept their Express Cash Offer, it doesn’t look like they require repairs. They just lower their offer price to cover them. Opendoor doesn’t provide any of these services, nor do they offer an advance for you to fix up your home before listing. Any repairs that they deem necessary when they make a cash offer are deducted from your offer price, and they could require that the repairs be done before you close. Neither Offerpad nor Opendoor is nationwide — they both cover select markets, primarily larger metropolitan areas. Depending on where you live, you may not have a choice between which company to work with. Offerpad buys houses in over 800 cities and 16 states, heavily concentrated on the West Coast. Opendoor operates in 50 markets in 26 states and the District of Columbia, from Austin, Texas, to Tucson, Arizona, but they don’t offer all their services in every area. Opendoor and Offerpad have a number of similar services and features, even if there are a few small differences in the details. Both companies make an offer on your home by estimating its value. They look at recent comparable sales in your area, estimate your home’s condition, and make an offer on that basis. Also, because both companies resell your home for a profit, they are both likely to offer below market value. What if you don’t like the cash offer they give you? Both companies allow you to list your home for sale by owner (FSBO) on their site. With Offerpad’s Flex List with Confidence, you can put their cash offer on hold and try your luck listing on the open market. They’ll even give you a home improvement advance to make repairs and upgrades before listing, though you have to work with their program coordinator and contractors. The advance is offered interest-free. Opendoor also lets homeowners list instead of accepting their cash offer. You can work with local industry experts to help you set your home’s price. While they say that the 5% in fees will save you versus the nationwide standard of 6%, it’s unclear if that fee includes the buyer’s agent’s half. They do not offer a home improvement program, as noted above, and instead, say that repairs will be based on the buyer inspection. Many real estate companies seek to be a one-stop-shop when it comes to your real estate journey. Opendoor and Offerpad offer programs that allow you to buy and sell a home at the same time. Opendoor’s buy-sell landing page explains that you can sell your house directly to them, get everything you need to buy a home in one place, and avoid paying for multiple moves and mortgages. You can partner with one Opendoor team every step of the way. Offerpad’s buy-sell landing page provides separate options to buy or bundle. If you bundle their services an coordinate your close dates, you can potentially save thousands of dollars and avoid paying double mortgages. Offerpad also provides home loan mortgage services in Alabama, Arizona, Colorado, Florida, Georgia, Ohio, North Carolina, Tennessee, and Texas. You can both apply for a mortgage loan for a new purchase and refinance an existing mortgage. Opendoor recently scaled back many of their in-house home loan services and appear to be using partner lenders to help their clients find the best mortgage solutions. Both companies offer buy-sell apps with similar features. The apps allow customers to do everything from requesting a cash offer to shopping for a new home. They also allow you to communicate with their team members. Offerpad describes their app as an “all-in-one solution for selling your home or buying a new one.” For sellers, the app is designed to be a simple and seamless way to manage the entire sale of your home 24/7. For buyers, the app provides robust features to shop for a home home using Offerpad’s smart search filters and detailed property information. Apple users give Offerpad’s app a 3.5 rating out of 5 stars. Google uses give the app 3.1 stars. Offerpad’s apps are on Google Play and the Apple App Store. Opendoor’s app also strives to be an all-in-one solution for buyers and sellers. It offers convenient features for shopping for and purchasing a new home, selling your current house, and closing the deal with speed and efficiency. Apple users give Opendoor’s app a 4.8 rating out of 5 stars. Google users give the app 4.2 stars. Opendoor’s apps on also on Google Play and the Apple App Store. Homebuyers can download their apps and shop homes for sale as if it were a transaction in the regular market. When you buy a home from Offerpad or Opendoor, however, you’re likely buying a home they have purchased and are reselling. A number of reviewers have noted that the quality of repair workmanship wasn’t up to their satisfaction (see below). Both companies make money similarly. They buy homes and make money off the fees that they charge sellers. With their mortgage lending services, they also make money from fees and interest charged. In addition, homebuying companies typically repair the houses they purchase and sell them, which can also bring in revenue. How do online reviewers* rate Offerpad and Opendoor? Sitejabber: 4.7 out of 5 stars, over 12,000 reviews. People who left positive reviews say that they had a great experience, appreciated the professionalism displayed by the company and found the site easy to use. While some express anger over lowball offers, they might not fully understand the iBuyer process or how a cash offer might compare to a more traditional sale using an agent. Negative reviews from some buyers say that the minimal cosmetic changes that Offerpad made when reselling the home they purchased were of poor quality. Better Business Bureau: 3.1 out of 5 stars, over 70 reviews. Home sellers who left reviews with the Better Business Bureau report that there were no glitches, everything went smoothly, and they received acceptable offers. A few also complain about offers they felt were too low. Buyers who purchased homes resold by Offerpad had a different experience — complaining of poorly done repairs, leaks, and shoddy work. Others say that they tried to buy homes but had offers canceled without explanation, or that Offerpad didn’t communicate with their agents. Trustpilot: 4.6 out of 5 stars, with 164 reviews People raved that Offerpad saved them time and money, was a stress-free process, and had flexible deadlines. Negative reviews didn’t appreciate that Offerpad lowered their initial offer by over $10,000 after the home inspection, that they wanted $17,000 of cosmetic updates made, or that they felt Offerpad wasted their time. Trustpilot: 2.4 out of 5 stars, with 12 reviews Sellers to Opendoor were unhappy to discover that the company charges fees similar to an agent’s commission. Several used the term “bait and switch” to describe the difference between the preliminary and final offer. Positive reviews say that the video walkthrough and offer process was quick and painless. Negative reviews from buyers who bought homes resold by Opendoor indicate general unhappiness with the quality of work done. They include complaints that they had no choice about using Opendoor’s closing attorney or title company, discoveries of concealed mold in the house, mixed up paperwork, and poor communication. BBB: 3.37 out of 5 stars, with 295 reviews Sellers use the term “bait and switch” in their reviews on this site, too, describing unprofessional communication and poor service. Buyers’ negative experiences continue, from poor communication from Opendoor to repairs done improperly to issues with gas leaks. One buyer says that they didn’t disclose serious sewer and plumbing issues which would have cost $15,000 to repair, but Opendoor wouldn’t negotiate. Another had to walk away from the purchase when the appraisal came in lower than the offer and Opendoor wouldn’t negotiate, telling them instead to bring the difference in cash to closing. Sitejabber: 1.3 out of 5 stars, with 6 reviews Complaints of “paperwork issues, rescinded offers after inspection, higher fees, and claims that they were just trying to get the offer down as low as possible. As of this blog post, there isn’t a single positive review for Opendoor on this website. Offerpad and Opendoor aren’t the only cash offer companies out there — and if they don’t operate in your city or state, you might need to look elsewhere. Here are a few other companies to contact: If you’re a home seller considering Offerpad or Opendoor, we invite you to also request a no-obligation cash offer through HomeLight’s Simple Sale platform. It’s a fast, free online tool that provides a cash offer to buy your home. Simple Sale also compares your cash offer amount with an estimate of what you might receive listing your home on the market with a top agent. The answer depends on your selling objective. For speed and convenience, an iBuyer is a good option. They don’t ask you to pick up the kid’s toys, paint the spare bedroom, or change the lightbulbs. Their process moves quickly from accepted offer to close date, and you can get your money and move within weeks. However, if you’re selling a home in fairly good condition and aren’t in a hurry, working with a Realtor may be the better choice. Realtors have local market expertise and can help you price your home competitively. They’ll market it so that you might receive multiple offers, which can drive the final selling price above your listing price. Yes, a Realtor could request minor fixes and cosmetic updates, but you’ll typically see their benefit in the higher sales price. It’s worth it to talk to an experienced agent and see what they could do for you. HomeLight offers additional services, too, as well as more tools for home sellers. * Some services are not available in all states Opendoor is larger. Opendoor had revenues of $8 billion according to its last public filing, whereas Offerpad had $2.1 billion in revenues. Opendoor started operating first, by a slim margin. Offerpad was founded in 2015, and Opendoor was founded in 2014. Whether or not you consider one company better than the other is subjective. If you’re considering using an iBuyer, it’s always best to check reviews and compare more than one offer. For home sellers, both companies may be a good option for a fast, uncomplicated sale. Both companies have satisfied customers, and both have negative reviews from people who bought one of their properties. If your home is in good condition and doesn’t need major work, you may consider their offers to be unreasonable. That’s because cash buyers often work best for sellers who don’t have the money, time, or desire, to make repairs, or for sellers who need a fast, timely transaction. If you sell your home on the open market you might receive higher and multiple offers. Both companies say they strive to make reasonable offers on all properties. It’s difficult to broadly determine if either company saves you money. What you might save in a 1% higher commission (versus their seller fees), you may lose in the potentially higher sale price that a proven real estate agent might get for your home. Depending on the condition, age, and location of your home, Offerpad and Opendoor offers may also be below market value. In the end, a seller must calculate all factors, including the time and cost of repairs, and the value of a fast, simple sale as it relates to their current life circumstances. Some of the complaints about iBuyers come from a lack of industry knowledge. These companies are primarily best for homeowners who need a fast, easy sale, whether it’s needing to sell to move an elderly relative into assisted living or to accommodate a sudden job change. If you’re in this situation or own a home that you can no longer afford or don’t want to take the time to prepare, an iBuyer can be a good option. Homeowners who have no external pressures on the sale, and a home in decent — even not great — shape, would be wise to also consult with an experienced real estate agent. A proven agent can help you price your home competitively, negotiate for a longer rent-back period if needed, and get more seller concessions. HomeLight’s Agent Match service can connect you with a top real estate agent in your area.What is Opendoor?
What is Offerpad?
Opendoor vs Offerpad: How are they different?
Fees Paid
Staying in your home after close
Help with home improvements
Markets served
How are they the same?
Home value estimates
For-sale-by-owner (FSBO) listings
Buy and sell at the same time
Buy-sell apps
How do Offerpad and Opendoor work for homebuyers?
How do Offerpad and Opendoor make money?
Offerpad and Opendoor reviews
Offerpad review ratings
Opendoor review ratings
Alternatives to Offerpad and Opendoor
Which is better, using an iBuyer or working with a Realtor?
What real estate services does HomeLight offer?
Additional tools and resources
Frequently asked questions about Offerpad and Opendoor
Which company is larger, Offerpad or Opendoor?
Who started operating first, Offerpad or Opendoor?
Is Offerpad better than Opendoor?
Do Offerpad and Opendoor make reasonable offers?
Do Offerpad and Opendoor really save you money?
iBuyers can be a good option, but homework is a must
