When selling your home in Las Vegas, you might feel you have the same odds of selling your home quickly as striking it big at the blackjack table. But, there is some good news: there are some options to help speed up the process.
Offerpad is an iBuyer operating in the Las Vegas area that can close on your home in as little as 10 days and make you an all-cash offer. However selling in a flash comes at a cost and you'll have to weigh the pros and cons.
Offerpad could help you avoid the hassle of trying to find a buyer and negotiate the deal. It may be worth it in your situation, especially in a market like Vegas that has begun to cool. You may not keep all your equity; iBuyers like Offerpad typically make offers just at or below market value, while charging a significant service fee.
Before commiting to Offerpad, get some free, no-strings advice from a local agent who can talk you through your selling options and help you find a balance between speed and profit.
Meanwhile, we've created this guide to walk you through the process of selling to Offerpad in the Las Vegas metro.
What is Offerpad?
For Vegas homeowners looking to sell fast, Offerpad is one of the fastest roots available. You'll get an all-cash offer within 24 hours of submitting a request and after accepting the offer, you could close in just 10 days (or 15 if you have an HOA).
According to Zillow as of August 2019, homes in the Las Vegas area are on the market for an average of 68 days. But, you'll still have to wait another 30 days or so to actually close. If you've already purchased your next home, that's a long time to pay a double mortgage. Not to mention insurance, taxes, and utilities.
Offerpad uses specific information you provide about the home to make an estimate of your home's value with its proprietary algorithm. This is combined with local Las Vegas market prices and Offerpad employees' expertise to give you a final offering price.
After accepting the initial offer, an Offerpad representative will conduct an on-site inspection to reveal any damage or repairs needed that will affect the value. The company then subtracts this amount from the offer price before finalizing the deal.
Instead of spending your time staging your home and schmoozing open house guests, you receive an instant offer, spend a short time letting an inspector look around, and then determine your closing and moving timeline. Plus, you won't have to worry about the sale falling through because a buyer can't secure financing at the last minute or sell their own home.
But, it's not all gravy, baby.
In exchange for speed, convenience, and not really lifting a finger to sell, you'll likely lose out on some profit. Like most cash buyers, iBuyers may bid low to maximize their profit. Plus there's a hefty service fee of 6-10%.
Outside of Las Vegas, Offerpad buys and sells homes in 11 other markets in Arizona, Florida, Georgia, North Carolina, South Carolina, and Texas — and they're coming soon to Los Angeles and Salt Lake City. If you're buying in any of these areas, you can buy and sell your home in back-to-back transactions through Offerpad's trade-in program.
How does selling to Offerpad in Houston work?
Selling your Vegas home to Offerpad is simple.
1. Request a no-obligation offer by completing a simple form through their website. You'll share information about your home's size, year in which it was built, layout, any included appliances, landscaping features, finishing, and your desired closing date. If your home has any stand-out features like a swimming pool, be sure to include this as it could increase the amount of your offer. You can also provide photos to help you get the most accurate offer.
2. Offerpad's automated system will incorporate the information you enter with public information and data about the Las Vegas housing market. An Offerpad expert reviews the figure, makes any necessary adjustments, and submits an offer to you within 24 hours if its eligible.
3. You have four days to accept or decline Offerpad's offer. You can always renew your offer if you can't make the deadline, but be aware that your offer may vary depending on the status of the Las Vegas housing market that day.
4. If you do accept the offer, Offerpad sends a representative for an on-site inspection, similar to what would occur were you to accept an offer during a traditional sale. If the inspection finds any repairs that need to be made, you can either have Offerpad deduct the cost of repairs from your offer, complete the repairs yourself (though the work must be done by a licensed contractor and you'll need proof of the work being done), or cancel the contract altogether. But, most traditional buyers will expect the same issues to be fixed before closing.
5. Set your own closing date and move. Offerpad asks that you're fully moved out at least 24 hours before closing, but they do offer an Extended Stay program if you need a bit more time.
Does Offerpad pay a fair price for Las Vegas homes?
Offerpad makes what it considers to be fair offers. Using their own calculations — and knowing that part of their business model is to make a profit on the resale of a home — you can safely figure your offer will be below the market, or at least not a penny above.
According to Zillow, the Las Vegas market is cold, meaning it's now a buyer's market. Las Vegas has a median home value of $274,300. As of August 2019, home values have increased by 4.9% over the past year but are predicted to drop by 0.2% in the next 12 months. While median listing price of homes currently on the market in Vegas is $300,000, homes are actually selling for a median sale price of just $268,400.
Keep these market conditions and forecast in mind when reviewing your Offerpad offer. Their algorithm and experts know this data too and the offering price they give you will account for falling home values. After all, they're taking on all the risk of the repairs and resale and you get to walk away from the deal with cash.
How much are Offerpad fees in Las Vegas?
In exchange for the convenience of having a virtually instant offer on your home, Offerpad charges a service fee that ranges between 6% and 10%. By comparison, in traditional home sales, a seller will pay 5% to 6% in realtor commissions.
To break it down on a $274,300 home — the current median home value in Las Vegas as of August 2019 — you'd probably pay $30,173 to sell your home with a traditional agent (this includes 6% in real estate commissions, 1% in staging and home prep costs, 2% in seller concessions, 1% in closing costs, 1% in homeownership costs for the short time you may pay two mortgages, two insurance policies, etc.) This cost could be even higher depending on how many repairs the new buyer requests.
On the same home, you could pay just $21,944 by selling to Offerpad (including the average 7% in seller fees and 1% in closing costs.) Plus, you'd skip lots of hassle. It isn't always the case that you'll pay less with Opendoor, but in Las Vegas where homes are starting to sit on the market a little longer, you usually will. Regardless, it's good to explore your options and go from there.
Pros and Cons of Selling to Offerpad in Las Vegas
When it comes time to sell, think through your priorities and determine what's most important to you. Weigh the pros and cons of all your options before making a decision.
- Speed: According to Zillow, Las Vegas homes sit on the market for an average of 68 days. Add another 30 or so days to account for closing, and you're looking at about three months before the whole ordeal is over. With Offerpad you could have a finalized offer in just 24 hours and close in as little as 10.
- Convenience: No one likes to clean, especially for strangers nit-picking every inch of your home during an open house. And, you're probably more excited to spend your energy making upgrades to your new home, rather than fixing things on your old one you won't even be around to enjoy. An instant offer from Offerpad saves a lot of time and energy.
- No hidden costs: Offerpad lays out all the costs and you won't be surprised by any last-minute additional selling fees come into play.
- Certainty: Don't worry about the buyer falling through because they can't secure a mortgage or sell their own house. Offerpad's offer is final and dependable.
- Flexibility: Close and move on your own timeline,
- Free local movers: If you're moving within 50 miles of the home you've just sold to Offerpad, the company will schedule and cover the cost of your move. Seriously?!
- Lower offers: Though Offerpad says it provides offers that are close to market value, the reality is that most iBuyers offer less than you would get with a traditional sale because they're taking on the risk and need to make a profit.
- Service fees: With Offerpad charging up to 10% of the home sale in service fees, you'll be paying significantly more than the 5% to 6% due to realtors.
- No negotiations: While Offerpad may be willing to come take another look if you'd like to dispute their offer, chances are low they'll offer you more. However, with a traditional agent, you may have a greater opportunity to negotiate both the offer and repairs needed.
- Strict criteria: Offerpad doesn't just buy any old Las Vegas home. They're only interested in single-family homes, including condos and townhomes, built after 1960. They're also only looking for home valued under half a million dollars sitting on lots smaller than an acre. If your home does not meet all of these criteria, it will not be eligible for purchase.
Top Alternatives to Offerpad in Las Vegas
Offerpad isn't the only iBuyer operating in Las Vegas. The biggest — and most established iBuyer in the area — is Opendoor.
Opendoor says more than 600 Las Vegas residents a week are requesting a free offer from their site and they give homeowners the option to buy, sell, or trade-in their homes on their own timeline.
They give homeowners more time to review their offers and offer a 14-day late check out option for sellers who need more time between closing on their house and moving. Opendoor also has a reputation for making offers that are closer to market value than their competition.
With operations in 20 U.S. cities, Opendoor also offers the biggest trade-in option to sellers. Homeowners moving from Las Vegas to another city in the network can do so in a seamless transaction thanks to third-party partnerships and integrated services — removing even more hassle.
Other iBuyers serving the Houston area include:
Working with an agent can help you more money out of your sale. Your agent will be responsible for listing your home, marketing it, arranging for showings, and handling the checklist of other details associated with a home sale.
Most importantly, they'll know how to increase your profits. A top agent will know what appeals to buyers in that area. That, in turn, means they'll list your home for a competitive price that brings offers in.
Flat-Rate, Full-Service Agent
To get the best of both worlds — selling fast while not losing out on cash — Clever partners with top agents across the country.
A Clever Partner Agent is a local expert who has a track record of selling homes quickly. With the help of a high-performing agent, you can develop a strategy that aggressively markets your home and leads to getting an offer in a matter of days, possibly hours.
The only difference between a Clever Partner Agent and the rest? Partner Agents have agreed to offer their full suite of services for the set price of $3,000 — or 1% if your home sells for more than $350,000.
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