Opendoor and Offerpad are iBuyers, companies that buy certain types of homes for cash in 40+ major metros across the U.S. You can request an offer online and you’ll hear if you're eligible within about 24 hours. If you like the offer, you get to choose your own closing date within 10–90 days. Learn more.
Knock is a trade-in service, not an iBuyer. If you qualify, Knock will front you the cash to buy your new home, repair your old home, and pay your old mortgage for six months. Once you’ve moved into your new home, you sell your old home with your choice of real estate agent, then use the proceeds to settle up with Knock. Learn more.
iBuyer vs. trade-in service: Which is right for me?
Who should consider an iBuyer? (Opendoor and Offerpad)
iBuyers are a good option for home sellers looking for a fast, hassle-free alternative to listing on the open market. In exchange for the convenience, Opendoor and Offerpad both charge a 5% service fee, a little less than the 6% commission realtors typically charge in a conventional sale.
But iBuyers typically pay less for homes than you could get on the open market. They only pay market value, deduct repair costs, and usually don’t let you negotiate. And they won’t be an option for most sellers — Opendoor and Offerpad only operate in select U.S. cities and have very strict criteria for what types of homes they’ll buy.
If you want to find out if you’re eligible to sell to an iBuyer and how much you can get, requesting an offer is free with no obligation. We recommend getting offers from multiple iBuyers, then talking to a few local agents to compare your options and make sure you’re getting the best possible price.
» READ: How to find a real estate agent
Who should consider a trade-in service? (Knock)
Trade-in services like Knock let you buy a new home before you sell your old one. These services can be a good option if you don't want to worry about coordinating closing dates or making repairs to your old home while you live there.
Trade-in services all work a little differently. But, if you qualify, each service gives you the ability to buy a new home with a competitive, guaranteed offer and covers your old mortgage so you don’t have to manage two at once. When your home sells, you pay the trade-in company back for the short-term expenses it covered and keep paying off your new home with a traditional mortgage.
Trade-in services, like iBuyers, are only available in select areas. Knock, for example, is available in 59 cities. It buys most homes within its purchase area with limited exceptions, like homes with water damage or homes in retirement communities.
To start with Knock’s Home Swap program, head to the company's website and see if you qualify.
It’s important to know that submitting your information for pre-approval may affect your credit score.
Opendoor vs. Offerpad: What is better?
If you’re considering selling to an iBuyer, we recommend Opendoor for most people because it:
- Tends to pay more for the homes it buys
- Is available in more locations (47 markets vs. Offerpad’s 25 markets)
- Has more lenient purchase criteria
- Has no cancellation fee
Offerpad may be a better option for you if:
- Your home is worth between $600,000–$1 million
- You need to close in under two weeks
- You need longer than two months to close
If you’re interested in selling to an iBuyer, the best thing to do is request a risk-free, no-obligation offer from every one that operates in your area. Just because Opendoor pays the most on average doesn’t mean it pays the most in every instance, so getting as many offers as you can helps to make sure you get the best possible sale price and terms.
What are the key differences between Opendoor and Offerpad?
💰 Service fee
🎯 Purchase criteria
🕓 Closing timeline
📓 Avg. rating
4.3 out of 5
3.7 out of 5
❌ Cancellation fee
Knock: What you need to know
Knock is a home trade-in service, which is different from an iBuyer. Both services allow you to avoid managing two mortgages, but trade-in services do this by giving you the ability to buy a new home before you sell your old one.
Knock pre-underwrites you for a loan, empowering you to make an offer that's as good as cash, then fronts you up to six months of your old mortgage and up to $25,000 for repairs while you sell your old home. You sell your home with an agent of your choosing and pay Knock back for its short-term expenses after closing.
💰 Convenience fee
1.25% fee comparable to a .5%–1% loan origination fee
🎯 Approval criteria
» READ: Our full Knock review
The main benefit of using Knock over other trade-in services like Orchard is that you get to choose your own real estate agent. Orchard lists your home on the open market too, but it does so using its own in-house real estate agents and it does all of the prep work. It's less hassle, but you also have less control over the selling process compared to Knock.
Knock charges a 1.25% service fee, but you'll still have to pay realtor fees (usually 6%) and seller closing costs (usually 1–3%) as you would in a typical home sale. The service fee is similar to a loan origination fee, though those are typically .5–1% and some lenders waive them altogether.
You could think of Knock's service fee as an extra expense on top of traditional selling costs, but if you’ve picked a great local agent, you might still be able to sell your home for more than Orchard or an iBuyer can get you.
You also have the opportunity to work with Clever, which can help you sell your home for top dollar while saving you money on fees.
Top FAQs about Offerpad, Opendoor, and Knock
Offerpad negotiates with buyers, but not sellers— there isn't any room to negotiate their offer price. However, if you believe Offerpad overlooked an important feature of your home, you can request a reassessment. If Offerpad agrees that the newly provided information changes things, it'll make a new offer.
Offerpad doesn't charge a commission. Instead, it charges a 5% service fee, which is deducted from the sale price. This fee doesn't cover closing costs or repairs and is non-negotiable.
Opendoor doesn't pay any closing costs. Sellers using Opendoor are responsible for paying all the typical closing costs, including title insurance and transfer tax.
Offerpad, Opendoor's main competitor, doesn't pay any closing costs either. Once you've sold your house to Offerpad, you're on your own as far as title insurance, transfer tax, escrow fees, etc. are concerned.