Offerpad Reviews: Is the 1% Cancellation Fee Real?

Offerpad is an iBuyer that makes their initial cash offer within 24 hours. They make their final offer after inspection and you get to choose a closing date within 90 days. They also provide free move within 50 miles.

However, the company pays only 70% to 80% of your property’s Fair Market Value. Additionally, repair and closing costs are deducted from their final offer. They also have a 5% service fee along with a 1% cancellation charge if you back out of the agreement.

✍️ Editor’s Take: We recommend listing your home on a cash buyer market place like Houzeo. You can get multiple cash offers and maximize your profits. Compare Offerpad vs. Houzeo.

Is Offerpad Legit?

Yes, Offerpad is a legit iBuyer service based in Chandler, Arizona. Brian Bair and Jerry Coleman founded the company in 2015. They launched their Agent Partnership Program in 2020. You can also list your properties with Offerpad’s agents.

The company has a strict eligibility criteria and purchases selected types of homes. In the past couple of years, the number of properties they have acquired has reduced drastically.

Year	Houses Acquired
2024 (First three quarters)	2059
2023	2812
2022	9034
2021	9023

The exact reason for this drop in number is not known. However, according to the company’s financial reports, they suffered a massive loss of $148 million in 2022. Here are some more insights into the company.

Will Offerpad Go Bankrupt in 2025? Watch the Video to Know More

What Type of Properties Does Offerpad Buy?

Here is a list of properties that are qualified and not qualified under Offerpad’s eligibility criteria.

Eligible Properties	Ineligible Properties
🟩 Single-family residential homes	⭕ Manufactured, prefabricated or mobile homes
🟩 Condos	⭕ Properties built before 1950
🟩 Town homes	⭕ Homes on lots larger than 2 acres
🟩 Homes in gated communities	⭕ Houses valued at more than $1 million (depending upon market)
🟩 Homes in age-restricted communities	⭕ Homes with significant foundational, structural, or other conditional issues
–	⭕ Properties where the seller does not have clear ownership (no double escrow)

How Does Offerpad Work?

Offerpad’s business model is based on flipping houses. They purchase houses at discounted cash offers and relist them after repairs/ renovations. Here’s how you can sell your house to them:

1. Request an Offer: Fill out a form on offerpad.com. You need to enter your property details and attach photos.
2. Evaluate Your Cash Offer: You get an offer within 24 hours of submitting the form. You need to accept or reject the offer within 7 days.
3. Sign the Purchase Agreement: If you decide to accept the offer, you have to sign an online purchase agreement through HelloSign.
4. Prepare for Inspection: The home inspection is scheduled after you accept the offer. You will get an overview of the specifications to help you make preparations.
5. Receive the Final Offer: You get the final cash offer within 5 days of inspection along with the repair cost, if any. The offer expires in 7 days.
6. Close the Sale: Choose a closing date within 90 days if you accept the final offer. You must vacate your house by the closing date.

Note: If you need more time, you can use their Extended Stay Program. With this facility, you can stay for up to 3 days after your closing date at no extra charge.

Additional Offerpad Services

Here are some additional services Offerpad provides.

• Offerpad Brokerage: You can work with an Offerpad agent to get all the services. Like a traditional agent, you will receive all the assistance with sale and closing.
• Offerpad Flex: Through this service, Offerpad funds repairs and improvements so that you can attract better offers. You have to refund the amount at the closing. The service covers paint jobs, fixtures, and countertops.
• Offerpad Home Loans: Finance your new home with the Offerpad mortgage solution. You get step-by-step assistance right from the application process till closing. You can use this loan to finance single-family homes, residential units, town homes, etc.

Offerpad Coverage

The company provides their services in 14 states across the nation.

How Much Does Offerpad Pay?

Offerpad usually gives 70% to 80% of a home’s FMV. However, the initial offer is often reduced after your home inspection. The 5% service charges, repair fees, and closing costs are deducted from the final offer.

Offerpad.com Reviews

The company has a 4.1-star rating on Better Business Bureau. Some Offerpad reviews praise their quick cash offers and flexible closing timelines. However, the Offerpad complaints mention low-ball cash offers and last-minute back-outs.

Offerpad Reviews: Customer Praises

✅ Teodroa D. seemed happy with Offerpad’s process in their brief feedback.

✅ Jorge Romero was happy with Offerpad’s cash offer. They praised the company for the smooth selling process.

Offerpad Reviews: Customer Complaints

❌ Kenneth was upset that the company didn’t move ahead after the initial offer and inspection.

❌ Teri Kropik felt cheated in their experience with Offerpad. Their initial offer of $250K was drastically reduced to $130K.

Offerpad Ratings

Here are the ratings of Offerpad given by different platforms.

Offerpad Pros and Cons

Companies like Offerpad help you sell your house fast but you may get low ball cash offers. Here are their pros and cons to help you make an informed decision.

👍 Pros

• Instant Cash Offer: You submit your property details online and get the initial offer within 24 hours.
• Flexible Closing Timeline: If you accept the final offer after the Offerpad inspection, you can choose any closing date within 90 days.
• Extend Stay Program: You can extend your stay for up to 3 days after the closing date without any rent.
• Free Local Move: If you move to a place within 50 miles of the house you sold them, they help you move for free.

👎 Cons

• Lowball Cash Offer: As per Offerpad reviews, they offer around 70% to 80% of your property’s Fair Market Value which includes several deductible charges.
• High Additional Fees: They have a hefty 5% service fee which is deducted from the final offer, along with the repair charges and closing costs.
• Offerpad Cancellation Fee: If you back out from the transaction 4 days before closing, you must pay a 1% cancellation fee.
• Limited Coverage: Offerpad provides services only in 14 states.

Offerpad Competitors

Following are some competitors of Offerpad that you can consider while selling your house without a Realtor.

1. Offerpad vs. Houzeo

Offerpad provides quick and easy cash offers. However, you lose out on your property’s 100% value. Also, you can’t negotiate with them.

On the other hand, a cash buyer marketplace like Houzeo can get you multiple cash offers. You can negotiate the offers with the buyers and opt for the highest value.

2. Offerpad vs. Opendoor

Opendoor has a similar business model to Offerpad and gives instant cash offers. However, their eligibility criteria is less stringent. So you can sell your distressed property to Opendoor. Also, they have more positive customer reviews as compared to Offerpad.

3. Offerpad vs. HomeVestors

HomeVestors is a cash house buyer that helps you sell all types of properties. So you can sell your house as is. They operate in almost all the states of USA. However, they offer only 70% of your home’s after-repair value and deduct the repair costs from it.

‘We Buy Houses for Cash’ Companies Near You

There are other “We Buy Houses for cash” companies like Offerpad. You can request offers from multiple cash companies and pick the one that suits you the best.

Other Options You Should Consider

• List on MLS: You can opt for a Flat Fee MLS company like Houzeo. This gives you maximum exposure and you don’t have to spend thousands on agent’s commission.
• Sell to Cash Home Buyers: Individual cash home buyers make all-cash offers, usually within 24 to 48 hours. They also let you skip listing on the MLS.
• Sell FSBO: For Sale By Owner websites help you list and sell a house yourself. So, you can save on agent commissions. You also get more control over the selling process.

Should I Sell to Offerpad?

Offerpad is a popular iBuyer and provides several benefits like fast cash offers, flexible closing date, and free local move. However, customers complain about their underpriced offers and last-minute price reduction.

If you want maximum profits for your home, we suggest listing it on cash buyer marketplace like Houzeo. They list your property within 48 hours and provide maximum exposure to attract multiple cash offers. You can get up to 100% of your property’s value.

» Houzeo Reviews: Check out why more than 10,000+ home sellers have rated Houzeo 4.9 stars out of 5 on Google and Trustpilot.

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Frequently Asked Questions About Offerpad Reviews