Offerpad vs. Opendoor: Everything You Need to Know

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By Andrew Whytock Updated November 1, 2023

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Which one is better? | How they work | Fees | Reviews | Availability | FAQ

Offerpad and Opendoor both offer the convenience of a quick home sale, but neither pays as much as you’d get by listing with a realtor. Offerpad has some nice perks — like free stays after closing — while Opendoor is more widely available.

Reviews for both companies are fairly good overall, but complaints have increased recently. Both companies are making lower offers and becoming more selective about the properties they buy.

The biggest variable with either iBuyer is repair costs. In our research, we found that home sellers were often disappointed by how much lower their final offer was after deductions for repairs.

How to compare offers from Offerpad vs. Opendoor

If you're serious about selling your home to Opendoor or Offerpad, you should request offers from both companies and know your home's estimated market value with and without repairs. Having competing offers is the easiest way to gain negotiating leverage in a home sale.

Free services like Clever Offers can help you compare offers from iBuyers like Offerpad and Opendoor with the sale price you'd get with an agent. You can also explore offers from individual investors in Clever's network, who can help you maximize your home value while still providing the hands-off convenience of a cash home sale.

With all your options laid out, you can decide if the cost of selling to an iBuyer is worth it to you.

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Compare up to 10 cash offers from companies like Offerpad and Opendoor, plus get an expert's opinion of your home's fair market value. Clever Offers is free, and there's no obligation to move forward with an offer. Simply tell us a few details about your property, and we'll do everything we can to get you the best possible offer on your home.

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Offerpad vs. Opendoor: Which is better?

Offerpad Opendoor
❌ Offers are lower than market value, similar to Opendoor's. ❌ Offers have declined in the past year and are now similar to Offerpad’s.
❌ Offerpad conducts a detailed inspection, and repair costs are often high. ❌ Opendoor conducts a brief inspection, and repair costs are often high.
✅ Offerpad has a 5% service fee, 1% cancellation fee, and free 3-day extended stay. ✅ Opendoor has a 5% service fee, free cancellation, and a daily fee for a 17-day extended stay.
✅ Offerpad offers extra perks like free moves and cash advance for home reno. ❌ Opendoor offers very few extra perks. There's a potential mortgage discount for buyers.
❌ Offerpad operates in only 14 states. ✅ Opendoor is available in 26 states and Washington, DC.
❌ Buyers report problems with repair work. ❌ Buyers complain about high prices and poorly done repairs.
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Both companies offer below market value

Opendoor used to make higher offers than Offerpad. But since the market cooled, their offers are similar. They both offer well below what you’d get on the open market with a real estate agent. And they tend to lower their final offers after an inspection.

However, that doesn’t mean they’ll offer the same amount for your home. Each company has its own method for calculating its offers. So the only way to find out which is better is to get offers from both.

Opendoor and Offerpad may charge high repair bills

We found many complaints about Opendoor and Offerpad charging high estimates for repairs after their in-person inspections. These repair costs can dramatically reduce your final offer.

However, the cost varies between companies on a case-by-case basis. For example, Bradley Carpenter of Kansas City said that Offerpad’s inspection led to a $40,000 reduction in its offer, while Opendoor’s reduction was only $7,000.

Offerpad’s inspection process tends to be more thorough and involves an in-person inspection of the interior and exterior of the home. Opendoor’s inspection is much simpler.

As Carpenter told us, “I was surprised [Opendoor] didn't at least come in and look around to make sure everything was okay. But there was no interior inspection at all. It was just basically, these three dudes came out and they walked around the exterior for maybe 20 minutes and then they left.”

Both companies charge similar fees

Like Offerpad, Opendoor charges a 5% service fee, which is similar to realtor commission in a traditional sale. However, Offerpad has a 1% cancellation fee if you back out after signing the purchase agreement, and Opendoor doesn't have a cancellation fee.

If you need to stay in your house after closing, Offerpad allows you to do so for free for three days. Opendoor lets you stay for up to 17 days, but you have to pay a daily fee (based on your home’s rental value) and a $2,000 security deposit.

Offerpad has better perks and more services

Offerpad easily beats Opendoor when it comes to perks and offering a wider range of services. Unlike Opendoor, Offerpad offers free local moves, cash advances for home improvements, listing services for sellers, home loans, and discounts when you bundle services.

Opendoor has relatively few perks. You may be eligible for discounts on your mortgage if you finance through Opendoor’s partner company Lower. Opendoor Exclusives — which are discounted off-market homes — is another perk, but only available in Texas.

Opendoor is more widely available

Opendoor is available in 26 states and Washington, DC — nearly twice as many as states as Offerpad. Both companies tend to serve only major metropolitan areas.

Both companies have similar complaints from buyers

Buyer reviews of both companies complain about repairs that were poorly done, often resulting in buyers paying extra to fix problems after moving in.

Also, Opendoor doesn't usually negotiate with buyers.

Barry Richards, Principal Broker at EXIT Realty Garden Gate Team in Springfield, Tennessee, told us that Opendoor houses are usually priced high and stay on the market until a buyer is willing to pay that price. He said, “My experience with Opendoor specifically is they don't respond to low offers.”

Offerpad vs. Opendoor: How they work

Offerpad and Opendoor are both iBuyers, which is a type of company that buys houses for cash. Unlike typical cash buyers, iBuyers use algorithms to make offers and only buy houses in reasonably good condition.

Offerpad and Opendoor differ slightly in how they purchase properties and in other details. Both offer additional services besides their core iBuying service.

Offerpad's services

To sell directly to Offerpad, you need to fill out an online questionnaire. Then Offerpad sends you an initial offer, which is contingent upon an inspection. Our research shows that Offerpad's inspection is usually more extensive than Opendoor’s.

After the inspection, you get a revised offer plus an estimate for repair costs. You can choose to complete the repairs yourself or have Offerpad do them for you.

If you accept Offerpad’s final offer, you can choose a closing date within 8–90 days (the minimum depends on your location). You can stay in your house for free for up to three days after closing and get a free local move within 50 miles.

The company also provides additional services, including traditional realtor services, listings for buyers, home loans, and bundled services at a discount.

Opendoor's services

Selling to Opendoor is mostly like selling to Offerpad. You fill out an online questionnaire, get an initial offer, and complete an inspection. Opendoor’s inspection is often much less involved than Offerpad’s. Some sellers simply upload photos or videos of the interior while a representative inspects the exterior.

After the inspection, you receive a revised offer, which includes repair costs. Unlike Offerpad, Opendoor doesn't let you do your own repairs. Opendoor completes them for you.

If you accept Opendoor’s offer, you choose your closing date. You can also stay in your home for up to 17 days after closing. The company charges a daily fee based on your home’s rental value.

Opendoor offers fewer additional services than Offerpad. As a buyer, you can buy an Opendoor-owned home, get a buyer’s agent, and, in Texas, get access to exclusive listings before they’re listed on the MLS.

Fees

Both Opendoor and Offerpad charge sellers a 5% service fee. The service fees may seem substantial, but they’re comparable to the 6% commission you'd pay agents for a traditional sale.

Just like in a traditional sale, you also have to cover closing costs, which vary by sale and are usually 1–3% of the sale price.

Opendoor allows sellers to cancel without penalty anytime before closing, whereas Offerpad charges a 1% cancellation fee if you back out after signing an agreement.

Here’s how the fees break down on a $350,000 sale:

Opendoor Offerpad
Sale price $350,000 $350,000
Service fee (5%) $17,500 $17,500
Closing costs (1–3%) $3,500–10,500 $3,500–10,500
Cancellation fee (1%) N/A $3,500
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Even though the 6% commission real estate agents charge may be more than iBuyer fees, sellers still tend to make more money listing with an agent because homes typically sell for more money on the open market.

» MORE: Where to find the best low commission realtors

Reviews

We analyzed hundreds of reviews from actual Opendoor and Offerpad customers. Because of its size, Opendoor has thousands more reviews than Offerpad and has more reviews that are positive.

Opendoor reviews

Positive Opendoor reviews mention its seamless closing process, which was especially appreciated by those who needed to sell quickly.

As this reviewer said, “I did not have time for a real estate company and dealing with an agent, showings, and all the things that goes into that. Opendoor made it very easy to show my home, proceed through closing, and sell my home with minimal effort.”

Several sellers mentioned that Opendoor’s inspection was very brief, which was positive for some people. However, some Opendoor reviewers complained that even these hasty inspections led to dramatically reduced offers. 

For example, this seller said, “The initial offer came in at $428,800 and required a video walkthrough to provide a final offer. ... The assessment lasted approximately five minutes, and no issues were found. The final offer came in at $388,800; from there, they subtracted an additional $32,733 for repairs.”

Also, Opendoor doesn’t always provide an itemized list of necessary repairs. As home seller Jesse Zappia of Charlotte, North Carolina, told us, “​​It's kind of a black box. Here's a repair cost number, and ours was low.” While this wasn’t a major issue for Jesse, the lack of transparency makes it hard to know if Opendoor’s repair estimate is fair.

Offerpad reviews

As with Opendoor, Offerpad reviews highlight how quickly and easily sellers were able to complete their transaction.

As a recent reviewer said, “The communication was stellar! Extremely friendly and kind team that guided me and never missed an email or a question I had. I felt completely supported and did not have one single issue with a seamless experience. I sold my home to them and they were very honest and zero surprises.”

However, like with Opendoor, some Offerpad customers complained about offers being dramatically lowered thanks to high repair estimates. And Offerpad didn't give all customers a detailed list of repairs, making it difficult to determine if its estimates were fair.

For example, this reviewer said, “They offer you a good price for your house, make you think that everything is good. They do an inspection and fill it with items that do not cost very much, like light bulb needs replaced or lock on bathroom door doesn't latch. They then tell me they need to take 62k off the purchase price for 'repairs' but do not offer an itemized list with prices for each item.”

Availability

Locations

Opendoor is active in 48 markets, while Offerpad covers 25. They’re both active in the following major iBuyer markets:

  • Arizona: Phoenix
  • Colorado: Colorado Springs, Denver, Fort Collins
  • Florida: Orlando, Tampa
  • Georgia: Atlanta
  • Indiana: Indianapolis
  • Kansas: Kansas City
  • Missouri: St. Louis
  • Nevada: Las Vegas
  • North Carolina: Charlotte, Raleigh
  • Ohio: Columbus
  • South Carolina: Columbia
  • Tennessee: Nashville
  • Texas: Austin, Dallas, Houston, San Antonio

Purchase criteria

Offerpad purchase criteria

Offerpad generally only buys homes that are:

  • In fairly good condition
  • Built after 1950
  • Single-family homes, including townhomes, condos, and homes in gated communities
  • Valued under $1 million
  • On a lot no bigger than 1 acre
  • Under clear ownership
  • Vacant on the close date

Offerpad also purchases homes in age-restricted communities, but the maximum purchase price is usually $350,000.

The company doesn’t buy properties that are mobile, manufactured, or prefabricated or that have significant foundation or structural issues.

Opendoor purchase criteria

Opendoor only buys homes that are:

  • In good condition
  • Built after 1930 (varies by area)
  • Single-family homes or townhomes (condos and duplexes are eligible in some areas)
  • Valued under $1.4 million (preferably $100,000–600,000)
  • On a maximum 2-acre lot (1 or 1.5 acres in some areas)
  • Under clear ownership
  • Owner-occupied or vacant at closing

Opendoor also buys single-family homes in age-restricted and gated communities in certain areas. It can also buy homes with solar panels if the panels are owned outright.

Opendoor doesn't buy homes that:

  • Are sold as a short sale or foreclosure
  • Have unpermitted additions
  • Are in flood zones
  • Have significant foundation or structural issues
  • Have septic systems or wells
  • Are built with outdated materials
  • Have damage from fires, floods, or other natural disasters

Bottom line: Know your options

Offerpad and Opendoor both deliver on the promise of a quick sale. However, their offers are harder to predict. Sometimes Opendoor offers more, sometimes Offerpad.

We recommend getting offers from both companies. Requesting offers is free, and there's no obligation to accept.

You can easily put the offers side by side and compare:

  • Your options for the closing date
  • Additional costs like deductions for repairs
  • Perks like late checkout and free moves

If you really want to do your due diligence before accepting an offer, we also recommend talking to a real estate agent to find out your home’s fair market value.

A hassle-free way to compare your options

With Clever Offers, you can compare up to 10 competitive offers from local, regional, and national cash buyers — with no added fees or commissions.

You'll get a professional home valuation to help you make an informed decision and a dedicated point of contact to help you navigate the offer process. Simply tell us a bit about your home, and we'll do everything we can to ensure you get the best possible offers.

Clever Offers is free, and there’s no obligation to move forward.

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Why you should trust us

From the author: I've written in-depth reviews of all the major iBuyers and had the chance to speak to home sellers, industry experts, and employees at Opendoor and Offerpad to get their perspectives.

I've also spent time reading investor presentations and researching market data from both Opendoor and Offerpad to find out what makes each company unique and identify where their strategies diverge.

Andrew Whytock
Content Team Lead
Clever Real Estate

FAQ about Opendoor and Offerpad

What is an iBuyer?

An iBuyer is a company that buys homes for cash and quickly resells them for a profit. Unlike typical cash buyers, iBuyers use technology to streamline the selling process, like using algorithms to make an initial offer. iBuyers charge service fees, only operate in select markets, and have strict eligibility criteria for homes.

Which is better: Opendoor or Offerpad?

Both are good options if you need to sell quickly. We recommend requesting offers from both so you can compare and choose the best option for your situation. Opendoor is more widely available and generally has an easier inspection process, but Offerpad has unique perks like free local moves (within 50 miles) and free extended stays.

Does Offerpad make reasonable offers?

Like all iBuyers, Offerpad makes offers that are below market value. If you sell your home to Offerpad, expect to get less than you would on the open market.

What's the difference between Offerpad and Opendoor?

Offerpad and Opendoor share a similar business model. They make selling your home fast and easy with instant cash offers and the ability to close on your timeline. They even charge the same 5% service fee, which is comparable to the 5–6% you'd pay a listing agent.

Offerpad has some extra perks, like free local moves and three-day stays after closing. But Opendoor is more widely available and doesn’t charge a cancellation fee.

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