Need to sell your home fast in Florida? iBuyers make it quick and easy for homeowners to sell their houses for cash — but using an iBuyer isn’t optimal for everyone. Here’s how the popular iBuyer Offerpad works in Florida, and highlighting some important factors that sellers need to consider.
Offerpad is an internet-based real estate service that offers cash for homes — also known as an iBuyer.
Sellers who want to sell quickly favor iBuyers, as they offer an almost instant cash offer and convenient sales process, saving sellers the stresses of preparing their home for the open market, negotiating with buyers, and enduring a prolonged closing process
Although iBuyers present an ideal sales solution for homeowners who need to sell fast, they aren’t the perfect option for everyone. iBuyers offer below market value for the homes they purchase and charge high fees for their service.
If you’re thinking about selling your Florida home, it’s important to weigh all of your options options — whether this means listing your home on the open market with a realtor or selling it for cash to an iBuyer.
In the meantime, here’s everything you need to know about selling your home to Offerpad in Florida.
What is an iBuyer?
An iBuyer uses a proprietary algorithm to produce near instant valuations and cash offers for homes. The company then does minimal updates to the house and resells it.
As a cash buyer, iBuyers can avoid the typical lengthy closing process; some iBuyers can close a sale in as little as eight days. For sellers who have a tight selling timeline, this gives homeowners a fast, straight-forward, and convenient way to sell their home.
For example, in Florida, Offerpad can close a sale in 15 business days. Selling on the open market takes an average of 86 days in Florida according to Zillow.
However, for that speed sellers have to meet certain criteria and pay for the convenience. iBuyers typically purchase homes that are move-in ready and require few renovations. If a property needs repairs or renovations, iBuyers deduct the cost from their initial offer.
Most iBuyers also charge a service fee to cover the costs of buying, carrying, and reselling your property.
How does selling to Offerpad in Florida work?
- The first step is to request a no-obligation cash offer for your home. Offerpad's online offer request form will ask you questions about your home, such as the address and details about any unique selling points it has.
- Offerpad then uses their own algorithm and comparable sales to determine how much the cash offer should be. Their team of local real estate experts reviews and refines the offer before presenting it to you. Typically you’ll receive Offerpad’s offer within 24 hours and you have 4 days to accept.
- If you like the offer, Offerpad will request your preferred closing date and whether you would like to opt for their Free Local Move service (within 50 miles) or Extended Stay option (no more than 3 days after closing).
- Once price and terms are agreed upon, you will sign the sales contract online, which officially puts your under contract with Offerpad.
- Offerpad will then organize an on-site inspection of your home within 15 days of the executed sales contract. This confirms the condition of your home and that no major structural issues or repairs are needed. If repairs are required, you have the option of crediting Offerpad for the amount or hiring a licensed contractor to take care of them before the closing date.
- The final step is to sign all final closing documents and transfer the owner's title to Offerpad. This is also the point when Offerpad deducts their service fee of between 6%–10% from the sales proceeds, and you receive the final net proceeds from the sale.
Don't accept the first iBuyer offer you receive.
Consider all your options so you can sell fast and for more money.
Does Offerpad pay a fair price for Florida homes?
Florida homeowners should expect a cash offer that is less than market value from Offerpad. However, this doesn’t make it an unfair offer; it depends on whether you value a speedy sale or the highest price possible.
A 2019 study by MarketWatch, showed that, on average, seller's net sales proceeds from iBuyers are 11% less than if they sold their home on the open market. However, a speedy closing and convenient sales process is often worth the lower sales price for many sellers — especially when you factor in double mortgage payments and other costs associated with selling.
According to Zillow, the median home value in Florida is currently $235,500 and on the rise. Selling with an iBuyer could mean leaving $25,905 on the table. If sellers aren't in need of a quick sale and can wait a couple of months, they could achieve a higher sales price by selling with a real estate agent.
How much are Offerpad's fees in Florida?
Offerpad charges between 6% and 10% of the total sales price as their service charge. The amount you pay varies depending on where your home is located, the type of property it is, and how long Offerpad believes it will take them to sell your home.
The fees help Offerpad cover the expenses incurred from owning and reselling your home, and offer a buffer in the event that they cannot recoup their costs from the sale.
Offerpad’s average service charge is about 7.5%, however it’s important to note that this does not include other closing costs such as title and recording fees. Homeowners in Florida should expect to pay an additional 2% to 4% in sellers closing costs.
What Sellers Need to Know About Offerpad
- Time to Get an Offer: It typically takes 24 hours for Offerpad to review your property’s information and present an offer that will be valid for 4 days.
- Time to Close: In Florida, Offerpad can close in as little as 15 business days, however if you require more time, they allow up to 90 days for closing.
- Service Fee: Offerpad’s service fee varies between 6% and 10% of the total sales price, however the majority of homeowners pay around 7%. This means that on the median home value in Florida of $235,500, homeowners selling to Offerpad should expect to pay a service charge of anywhere between $14,130 and $23,550.
- Biggest Pro: Offerpad provides sellers with the option to sell their home quickly and conveniently, and for cash.
- Biggest Con: They currently only service the Orlando and Tampa real estate markets, which means many homes in Florida are not eligible. It’s also important to note that even in their service areas, Offerpad will still not buy homes that were built before 1960, have a value above $500,000, or sit on lot sizes larger than 1 acre.
Impartial online reviews about Offerpad and its services are extremely limited, however it has an A+ rating with the Better Business Bureau and currently boasts a 94% customer satisfaction rating according to Offerpad's own internal review system.
Top Alternatives to Offerpad in Florida
Opendoor is another iBuyer that operates throughout the U.S. and in Florida. It offers the same convenience and quick sales experience as Offerpad; however, Opendoor is also available in Jacksonville, plus Orlando and Tampa.
Plus, Opendoor is a service business, and not an investor, so its cash offers tend to be close to fair market value and the highest of all the iBuyers. This is because they focus their business on sales volume, rather than gaining the highest profit for individual homes.
Here’s what you need to know about Opendoor and how it compares to Offerpad:
- Time to Get an Offer: Once requested, sellers should expect to receive their Opendoor offer within 24 hours. Opendoor relies on comparable sales in the area and other data points to create an offer as close as possible to market value.
- Time to Close: Opendoor is able to close in as little as 14 days and up to 60 days after contract acceptance.
- Service Fee: Opendoor’s service fee is between 6% and 14%; however, most homeowners pay an average of 7.1% according to their website. Opendoor’s service fee varies depending on how long it will take to sell the home and to help to cover the expenses incurred when reselling.
- Biggest Pro: Opendoor’s offers are typically higher than any other iBuyer, giving sellers a way to make more money while selling fast.
- Biggest Con: Opendoor is still expanding their reach, so at present are not available in all markets across the state of Florida.
If you’d like to learn more about Opendoor and other selling options click here for a free, no-obligation offer on your home.