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] An analysis of recent Offerpad listings showed an median gap of about 10% between Offerpad's initial purchase price and subsequent resale price — equal to $40,000 in lost profit potential on a $400,000 house.
Offerpad also deducts the full amount for any repairs or touchups it thinks your home needs to get it ready for the next buyer. Past customers complain that 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 need to sell quickly, but are on the fence about which route to choose, a free offers marketplace like Clever Offers could be a good starting point. You can compare legitimate cash offers from iBuyers, local investors, and more. You can also get a professional home valuation to see what the market might pay relative to the offers you have in hand. Regardless of which route you choose, sellers with multiple offers to fall back on tend to get better outcomes.
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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
Offerpad fees on a $500,000 home sale
| Sell to Offerpad | List with Offerpad | |
| Service fee | $25,000 (5%) | None |
| Listing costs* | None | $30,000 (6%) |
| Closing costs | ~$5,000 (~1%) | ~$5,000 (~1%) |
| Repair credits | Based on inspection | Negotiated with buyer |
| 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 of up to 60 days out from the contract signing.
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."
Offerpad also charges a 1% cancellation fee if you back out after signing the contract, plus a $10,000 security deposit holdback if you opt for their extended stay program.[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 | Variable (historically 5%) | 5% |
| Repair costs | Vary | Vary |
| Median purchase price | $313,500 | $280,000 |
| Median resale price | $341,000 | $310,000 |
| Median price difference* | $27,500 (~9%) | $30,000 (~10%) |
| Est. lost profit potential | -$40,755 (14%) + repairs | -$42,000 (15%) + repairs |
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, Bradley Carpenter, 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).[7] Customer reviews on BBB, Trustpilot, and Google mention similar price drops following Offerpad's home inspection.
Carmela James, who compared offers from both companies on a Phoenix-area home in early 2024, had the opposite experience: "Opendoor's came in a little higher upfront...When I got further into the process, both of them adjusted the offers after the inspection. … Towards the end, the gap between them wasn't so huge." James ultimately declined both offers and sold traditionally for about $30,000 more than either iBuyer's final number.[8]
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.
| Scenario | Opendoor | Offerpad |
|---|---|---|
| Best case Top 10% of past sellers | +$0 Broke even or got overpaid | +$23,800 Got overpaid by ~7% |
| Better than most Top 25% of past sellers | -$12,100 Left 3.8% on the table | -$6,500 Left 1.9% on the table |
| Typical outcome Median past seller | -$27,500 Left 8.8% on the table | -$34,300 Left 9.8% on the table |
| Worse than most Bottom 25% of past sellers | -$40,200 Left 12.7% on the table | -$76,400 Left 21.8% on the table |
| Worst case Bottom 10% of past sellers | -$57,200 Left 17.7% on the table | -$131,700 Left 37.6% on the table |
Offerpad does offer some unique perks, including free local moves within 50 miles and up to 3 days of free occupancy after closing (with a $10,000 security deposit holdback). However, on average, Offerpad appears to cost sellers more in lost profit potential.
Offerpad fees vs. realtor fees
The table below compares what a seller would likely net from Offerpad vs. a traditional or low-commission agent on a home with a $500,000 fair market value. Offerpad's purchase price reflects the median gap between its buy and resale prices in our dataset — meaning the "sale price" column represents what Offerpad would likely pay you, not what the home is actually worth.
| Offerpad | Traditional realtor | Low commission broker | |
|---|---|---|---|
| Sale price | $450,000* | $500,000 | $500,000 |
| Fee or commission | $22,500 (5%) | $25,000–30,000 (5–6%) | $17,500–25,000 (3.5–5%) |
| Repairs | $15,000 (Est. 3%) | $5,000 (Est. 1%) | $5,000 (Est. 1%) |
| Closing costs (~1%) | $5,000 | $5,000 | $5,000 |
| Profit | $407,500 | $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 $34,300 less than it eventually resold homes for — costing sellers about 10% in potential profits, not including service fees or repair costs. That's roughly $50,000 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. One caveat: not all cash buyers are equally reliable. "Eighty percent of the deals turned in by investors don't close," notes Bruce Lynn, a broker associate at Keller Williams with 25 years of experience and an investor background. "It's often wholesalers who don't have money but make cash offers."[9] If you go this route, ask for proof of funds, non-refundable earnest money, and recent closing references before signing.
- 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 start by providing a healthy offer. Over time, it is death by a thousand nicks. Their inspector proceeds to rip apart the house (in his report) and they use that to cut the offer price by 35%. They take advantage of having wasted the seller's time and leverage that desperation. I pulled the plug and restarted the selling process.
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.
Sellers who ultimately walked away describe similar experiences. Yolanda M., who received an offer on a suburban Atlanta home in 2025, says the final number was "around maybe 15 to 20% drop from the initial offer." Most of that, she says, was tied to repair estimates for rooftop and minor cosmetic items — work she ended up completing for far less when she listed with an agent.[10]
While some sellers indicate that Offerpad's repair requests seem reasonable given the work needed, in many markets today — where buyers have more inventory to choose from — you may still be well positioned to sell without making steep concessions. Fewer than half of recent sellers (44%) offered any repair concession to the buyer, even in a market that broadly favors buyers. A realtor can negotiate repair credits directly with the buyer — passing some of the cost across the table rather than swallowing it upfront.[11]
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.
Can you negotiate with Offerpad?
Yes — according to Offerpad, sellers can negotiate the offer price and repairs.[12] 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.
Real estate broker Bruce Lynn told Clever that he was able to negotiate an Offerpad offer from $150,000 to $169,000 — about a 12% increase — on a Dallas-area rental property in late 2025. "Their first offer was a little bit low, but I negotiated with them several times and they brought what was, to me, a very fair offer," Lynn said. He also pushed back on an $8,000 foundation repair holdback that he didn't think was warranted — and ultimately got the full amount refunded after Offerpad resold the home without doing the repair.
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.
Bottom line: Are Offerpad's fees worth paying?
Whether Offerpad's fees are worth paying depends on how much profit you're willing to sacrifice in order to avoid the traditional listing process.
Jesse Zappia, who spoke to us via Zoom about selling his home to an iBuyerin 2022, said this about the trade-off: "We were in a position where taking less money was worth it for us. If you go in with that mindset, it's great. But if we were in a scenario where we weren't as timebound, I think going the traditional route is probably the way we would go, just to get the better profitability out of it."
Carmela James, who got offers from both Opendoor and Offerpad before listing her Phoenix home with a local agent in 2024, said the convenience didn't quite pencil out for her family — but she'd "consider an iBuyer again, especially if the pricing is a bit more transparent upfront."[8]
In today's market — where buyers have more inventory to choose from and sellers in many metros are competing for offers — the gap between an Opendoor offer and what an agent can get you on the open market can widen or narrow depending on local demand.[13] An iBuyer's offer is a useful price floor either way — it tells you the absolute least you'd accept, and that's a number worth having in writing before you commit to a listing strategy.
Remember that requesting offers is free, and there's no obligation to accept. You can get the offer and use it as a backup while you test the waters with an MLS listing or try to get a better deal off market.
» Get competing cash offers — no fees or commissions
FAQs about Offerpad fees
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 $10,000 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.
Clever Real Estate owns and operates Clever Offers, which is mentioned in this article as an alternative to Offerpad. Our editorial team evaluates all companies independently using proprietary data and customer research.