When you sell your home to Offerpad, you can expect to pay a service fee of 5% on your home sale price.[1] However, service fees are only part of the cost of selling to Offerpad.
To start, Offerpad admits that its offers may be "slightly below traditional market value to account for the convenience and speed of a cash sale."[2] Offerpad also deducts the full amount for any repairs or touchups it thinks your home needs to get it ready for the next buyer. Customers across 3rd-party review sites like the Better Business Bureau, Google, and Trustpilot complain repair costs can lower offers by tens of thousands of dollars — sometimes just days before closing.[3][4][5]
The bottom line is that you'll likely net less selling to Offerpad than you would with a conventional home sale.
If you want to avoid the traditional listing process, and don't mind sacrificing some potential profit to do it, Offerpad is worth considering.
- Requesting an offer is free, and you're under no obligation to accept it. Just be sure to compare their offer alongside other top-ranking competitors.
If you want to avoid repairs without sacrificing your bottom line, you're likely better off hiring a realtor to sell your house as is.
- Our analysis of recent Offerpad listings showed an average difference of 13.79% between Offerpad's initial purchase price and subsequent resale price — equal to $52,000 in lost profit potential on a $400,000 house, not including service fees or repair costs.
If you need to sell quickly, but are on the fence about which route to choose, an offer marketplace like Clever Offers could be a good starting point.
With Clever Offers, you can compare direct cash offers from multiple sources, ranging from iBuyers to local investors. You can also test the waters with a no-obligation 7-day MLS listing, allowing you to see what the market will pay while using a cash offer as a backup. Answer a few quick questions and start comparing offers — no added fees or obligation.
What fees does Offerpad charge?
Offerpad gives you a couple of different options for selling a home. Offerpad's fees depend on which path you choose to sell your home:
- Sell directly to Offerpad for cash
- List with Offerpad using its cash offer as a backup
Estimated costs on a $500,000 house
| Sell to Offerpad | List with Offerpad | |
| Service fee | $40,000 (5%) | None |
| Listing costs* | None | $30,000 (6%) |
| Closing costs | ~$5,000 (~1%) | ~$5,000 (~1%) |
| Repair credits | Based on inspection | Negotiated with buyer |
| Additional fees | None | None |
| Estimated total costs* | $30,000 (6%) + repairs | $35,000 (7%) + repairs |
**Total costs do not include repair credits or concessions made to the buyer.
Offerpad cash offer fees
Offerpad's main service is its iBuying program, which lets you sell your house directly to Offerpad for cash. The company gives you a quick cash offer and lets you choose a closing date between 8 and 90 days out.
The fee for Offerpad's cash offer is 5% of the home sale price.[1] However, you'll also pay traditional closing costs and variable repair costs, which Offerpad presents with its final offer based on its home inspection.
According to reviews, Offerpad's repair costs can be considerable. "Offerpad decreased their offer by almost $35,000 (almost 8% of the sale price) after their 10-day inspection period," a customer noted in a recent Google review. "$25,000 of that was for repairs they 'discovered' during the inspection."
While Offerpad used to charge a 1% cancellation fee if you backed out after signing the contract, it now claims that sellers can cancel without penalty anytime before closing.[6]
Offerpad listing fees
As an alternative to its cash offer program, Offerpad allows you to list your home for up to 60 days on the open market with an Offerpad real estate agent through their HomePro program. If your house doesn't sell, you have the guarantee of a cash offer in your back pocket.
Offerpad claims that listing typically costs about 6% of the home sale price, covering both the listing agent and buyer's agent commission.[2] However, Offerpad agents are free to set their own commission rates, so you may be able to negotiate.
Offerpad fees vs. Opendoor fees
| Opendoor | Offerpad | |
|---|---|---|
| Service fee | 5% | 5% |
| Avg. purchase price | $338,560 | $293,436 |
| Avg. resale price | $366,844 | $324,925 |
| Avg. price difference | $26,376 (8.79%) | $29,346 (13.89%) |
| Est. lost profit potential* | -13.79% (plus repairs) | -18.89% (plus repairs) |
*Estimates based on an internal analysis of 409 Opendoor homes and 123 Offerpad homes bought and sold between May 2023 and June 2025. Data was sourced from HouseCanary and public property records and included all records within a 2-year time frame showing Offerpad as both the listing broker and grantee on the prior home purchase. Estimated losses do not include repair costs.
Offerpad's 5% service fee is on par with its main competitor, Opendoor's.
While anecdotal evidence suggests Offerpad's initial offer is sometimes higher, customers also indicate that Offerpad may drop its price dramatically following a home inspection. For example, a Kansas City home seller we spoke to via Zoom indicated that Offerpad initially offered more for his home than Opendoor, but then quoted him nearly 6x as much for repairs ($40,000 vs. Opendoor's $7,000). Customer reviews on BBB, Trustpilot, and Google mention similar price drops following Offerpad's home inspection.
Our own analysis of more than 500 recent Offerpad and Opendoor transactions showed that Offerpad typically paid less for homes and earned a higher profit margin upon resale than Opendoor. However, Offerpad was also twice as likely to sell homes at a loss, indicating a lot of variability in its pricing.
Offerpad does offer some unique perks, including free local moves within 50 miles and up to 14 days of free occupancy after closing (with a $4,000 security deposit). However, on average, Offerpad appears to cost sellers more in both fees and lost profit potential.
Offerpad fees vs. realtor fees
| Offerpad | Traditional realtor | Low commission broker | |
|---|---|---|---|
| Sale price | $430,555* | $500,000 | $500,000 |
| Fee or commission | $21,528 (5%) | $25,000–30,000 (5–6%) | $17,500–25,000 (3.5–5%) |
| Repairs (~2%) | $15,000 | $5,000 | $5,000 |
| Closing costs (~1%) | $5,000 | $5,000 | $5,000 |
| Profit | $389,027 | $460,000–465,000 | $465,000–472,500 |
Offerpad's 5% service fee is similar to the 5–6% realtor commission you'd pay in a traditional home sale. However, sellers may still walk away with less for a few different reasons:
- First, Offerpad typically offers sellers less than market value for their homes. Our team's analysis of more than 530 homes purchased by the nation's two largest iBuyers found that Offerpad paid an average of $29,346 less than it eventually resold homes for — costing sellers about 13.89% in potential profits, not including repair costs. That's equal to nearly $70,000 on a $500,000 home.
- Second, a top real estate agent knows how to prep, price, and market your home to get strong offers — often above asking. They can also negotiate repair costs on your behalf, passing some of the cost to the buyer. By contrast, Offerpad charges you for all repairs or improvements needed to get your house 'market ready' and then keeps the upside from the open market listing.
- Finally, agents negotiate their rates, while Offerpad does not. Given the number of highly-rated low commission real estate options available, you may find better value elsewhere — with the flexibility to pick your own agent. There's no need to work with a specific agent to request an offer from Offerpad or any other iBuyer, so you can still have that resource to fall back on.
Offerpad fees vs. other alternatives
- Clever Offers: Rather than a single take-it-or-leave-it cash offer, Clever Offers lets you compare multiple offers from local investors, iBuyers, and more. Clever can also pair you with a top local listing agent to explore a short-term MLS listing — giving you broader exposure to cash buyers through the MLS without the commitment of a traditional listing agreement. However, getting matched with an agent isn't necessary if you'd prefer to explore only direct cash offers. There are no platform fees for using Clever Offers, but you may pay listing fees if you decide to work with an agent or standard service fees charged by a partnering iBuyer or sell-before-you-list program.
- 'We buy houses' companies: Local 'we buy houses' companies make offers that account for both their fix-up costs and desired profit margin, so you can expect them to offer your less than what they feel is the fair market value of your home. However, they buy homes in just about any condition and don't charge service fees or closing costs. Your net proceeds may be similar to, or slightly less than selling Offerpad, but you'll know the final offer upfront without the uncertainty of repair deductions.
- Low commission brokerages: Low commission brokerages can list your home for as little as 1% of the sale price (not including a buyer's agent concession, should you choose to offer one) while still providing a full-service listing experience. You can still leverage backup cash offers, since these are available through multiple iBuyer companies.
- 'Buy before you sell' services: Buy before you sell services (also known as bridge loans) offer short-term home equity loans you can use to buy a new home before you sell your current one. After you move, you list your old home with a realtor and settle up with the bridge loan provider at closing. Most charge 2-2.5% on top of the usual closing costs. They're best for people with solid equity in their current property who want to buy their next home before they sell. These programs help you move faster, skip the hassle and stress of living through showings and inspections, and avoid simultaneous out-of-pocket costs for two properties.
How much does Offerpad charge for repairs?
In any home sale, a buyer can ask for repair credits based on a home inspection report. However, it's up to them to justify the ask, and you have full power to renegotiate or even reject the request altogether if you think it's unreasonable. Most buyers would prefer to keep the deal moving forward than lose the house haggling over repairs.
With Offerpad, a "Repair & Maintenance Credit" is simply deducted from the final offer price based on the work Offerpad thinks your house needs, and it's up to you to fight it if you feel it's unfair. Reviews indicate that the charges can be hard to predict and may reduce your net sale amount by tens of thousands of dollars — often at the last minute.
They offered $35K less than the estimated home value, because they were going to 'replace the kitchen and also put new flooring in the kitchen.' [...] Then, they did their home inspection and came back at 3pm EST on the LAST DAY of the due diligence period with an additional $36K in repair credits!!!! Hmm $35K + $36K = $81K in credits??
I was told the final number would actually come in around $100,000 below the initial figure due to so-called “fees” and “renovation costs.” This was both misleading and unacceptable. My home is only three years old and in immaculate condition, with no damage and no need for renovations. To suggest otherwise as justification for such a drastic reduction is unreasonable.
While some home sellers indicate that Offerpad's requests seem reasonable given the amount of work needed on their house, in a seller's market — one where the demand for homes outpaces available listings — you may be well positioned to sell your home without having to make those concessions.
Does Offerpad charge hidden fees?
While Offerpad discloses its 5% service fee on its FAQ page, detailed costs — including repair credits and closing costs — are typically only fully discussed during a consultation with an Offerpad HomePro. Contrary to investors who factor repair costs into their initial offers, you won't know your final offer from Offerpad until after you've sunk time into the process.
When Offerpad provides the initial cash offer, you must sign a purchase agreement before the deal can proceed to the inspection stage.
This is when it gets tricky. When Offerpad provides the inspection report, it will also provide an updated cash offer that reflects the repair credits, which some sellers claim lower the sale price by as much as 20%. Customer reviews frequently mention surprise repair costs being dropped late in the process, sometimes right before closing.
While Offerpad gives you the option to cancel, many sellers at this point have already gone under contract on a new house. For example, one past customer complained:
Sellers and buyers beware. [Offerpad] will bait you with a high offer and revise it substantially lower right before the close. For us it was the day before the scheduled close. The revised offer was more than 20% less than the original offer. Fortunately, we were able to decline their reduced offer, not everyone is so lucky. If you have already moved or committed to purchase another house you may find yourself stuck. It's what I consider a bait and switch tactic. Do not commit to anything with them that is not a final offer.
Are closing costs included in Offerpad fees?
No, Offerpad's service fee does NOT include closing costs. You should set aside 1–3% of the sale price to cover these expenses.
Closing costs vary by location but are typically shared by the buyer and seller. In general, sellers pay administrative fees, transfer taxes, and title insurance.
How much do Offerpad's extra services cost?
If you decide to sell to Offerpad, you can take advantage of several perks at no additional upfront cost:
- Extended Stay. Offerpad allows you to stay in your home for up to three days after closing. Offerpad would hold $4,000 of your proceeds as a security deposit, to be refunded after you move out.
- Local Move Program. If you’re moving within a 50-mile radius, Offerpad will pay for your moving services. The company partners with local movers and will pay them directly to move homes up to 2,800 sq. ft. You'll be responsible for the packing and any additional costs, such as extra insurance for expensive items.
- Home Improvement Advance. Additionally, Offerpad advertises a home improvement advance at no upfront cost, which can be put toward repairs and minor updates prior to listing. However, you may pay interest or other fees on the advance at closing.
Can you negotiate with Offerpad?
Yes — according to Offerpad, sellers can negotiate the offer price and repairs.[7] However, Offerpad reserves the right to cancel the contract if you don't agree to its price. In general, you'll have much more room to negotiate if you list your home on the open market.
You'll have a better shot at successfully negotiating with Offerpad, though, if you’re armed with information. Recent appraisals, inspection reports, and maintenance reports can help you make a stronger case for a higher offer or lower repair credit.
When it comes to repairs, gather as much information about your home as possible ahead of time. For example, if Offerpad suggests installing a new roof, but you have documentation showing that your roof isn’t due for an upgrade for several years, you may be able to successfully push back.
You have much more room for negotiations when selling your home with a real estate agent — especially if you work with a company that's already negotiated commission savings on your behalf.