Opendoor and Offerpad are both iBuyers: companies that purchase your home for cash.
You don't have to worry about showings with either company, and you aren't faced with uncertainty over how much your home will sell for or when you'll find a buyer. You’ll get a quick offer and can close on your own schedule.
- 💰Fees: You might pay more for Offerpad. Opendoor's service fee is between 3.5% and 5%, compared to Offerpad's 6-10% service fee.
- 📍Locations: Opendoor serves more markets than Offerpad, although both are focused on major metro areas where property values are high.
- ⭐ Customer reviews: Customer reviews were overwhelmingly more positive for Opendoor. However, each company has some complaints, most notably about their inspection and repair processes.
- ➕ Other services: Offerpad provides a free local move, which Opendoor doesn't. But both companies offer flexibility regarding when you move out, as well as features designed to create more incentive for buying a property from them.
3.5-5%, plus 1-3% closing costs and variable repair credits
6-10%, plus 1-3% commission and variable repair credits
4.1 stars (889 reviews)
1.77 stars (57 reviews)
23 cities across OR, CA, NV, UT, AZ, CO, TX, TN, GA, NC, FL
14 cities across AZ, AL, FL, GA, NV, NC, SC, and TX
Overall, Opendoor is the best pick because:
- There are no cancellation fees
- They operate in more markets
- Their fees are capped at 5%
- Customer reviews of Opendoor are much more favorable than customer reviews of Offerpad
Like other iBuyers, Opendoor and Offerpad tend to offer less than fair market value for your home. And, with either company, the ultimate price you receive could be lower than the initial offer if their inspectors find your property needs fixes.
Both Opendoor and Offerpad charge sellers fees for their services. But their fee structure works differently.
- Opendoor charges a service fee between 3.5% and 5% of the closing price. Offerpad charges between 6% and 10%.
- Offerpad charges a 1% cancellation fee if you don't cancel within 4 days after the inspection period. Opendoor doesn't charge a cancellation fee.
The difference in the service fees can be considerable. Here's how much you could be required to pay if you sold a $300,000 home to each company.
These fees are in addition to standard closing costs which you will owe in any real estate transaction. Closing costs could add up to 1-3% of the home's value.
While these fees seem substantial, remember that you don't have to pay the traditional real estate agent’s commission. These fees typically add up to 6% of your home's value, which is comparable with Offerpad’s cost and a little above what Opendoor charges.
Of course, there are alternatives to this traditional model including working with a discount brokerage such as Clever.
Clever can match you with a full-service agent who helps you sell your home for top-dollar on the open market. And you'll pay just $3,000 or 1% of your home's value to your listing agent for their services.
Time to close
🔑 Key takeaway
Offerpad offers a little more flexibility — close faster, or take up to 3 months.
One of the biggest benefits of using an iBuyer is that you can quickly close on your sale. When you close, that means you transfer ownership of your property and receive your money.
Closing can take time with a traditional buyer. They must secure financing and wait for their bank to be ready to issue a loan. iBuyers pay cash, so you can finish your sale much faster. You also have to take your buyer's timeline into account with a traditional sale — but not with an iBuyer since they work on your schedule.
Both Offerpad and Opendoor provide this speed and flexibility. In fact, the two companies work on a very similar schedule:
- Offerpad provides an offer within 24 hours after you submit an online request that includes photos. The minimum time to close varies by state, but it could be as short as 8 business days or as long as 11 business days. You can also take more time if needed — up to 90 days.
- Opendoor provides an instant offer. And you can set your closing date for anywhere between 14 and 60 days of the time you accept their price for your home.
Many of the Opendoor and Offerpad markets overlap, but Opendoor is the only one of the two to operate in:
Both Opendoor and Offerpad deduct repair credits from your offer in order to complete any necessary repairs before they resell your home.
Alternatively, sellers who work with either company are allowed to conduct the repairs themselves or with the help of their own contractor.
Keep in mind that doing the repairs yourself might slow down the selling process, and the company (Opendoor or Offerpad) will still need to sign off on your repairs before closing.
The initial offer you receive could drop considerably after Offerpad or Opendoor inspects your property. This is a common complaint in reviews.
With Offerpad, you only have four days from the date of your initial offer to shop around and conduct your own repairs — so it's virtually impossible to avoid Offerpad's repair deductions.
Opendoor is the largest iBuyer in the country and has many more reviews. It's reviews also tend to be more positive overall than Offerpad. In fact:
- Opendoor reviews showed the iBuyer received an average customer rating of 4.05 out of 5
- Offerpad reviews were more negative, with an average customer rating of 1.77 across three review platforms.
Opendoor's positive reviews touted the speedy process, competitive offers, and the seamlessness of the transaction. While some reviewers had issues with the cost of repairs, most customers were satisfied overall.
This review, from the Better Business Bureau, is largely consistent with the experience many sellers had.
However, that's not to say no one has any complaints. In fact, some reviewers complained that Opendoor used the inspection process to substantially reduce its initial offer.
While it's common for all home buyers — including iBuyers — to request money off if a home has problems, this can become an issue if the buyer isn't reasonable in their repair requests.
Although Offerpad's reviews were more negative overall, some customers still had good things to say. Sellers who were happy with their transactions praised the assistance they received with repairs, as well as the easy selling process.
However, dissatisfied sellers had various problems. This review sums up several common complaints, including overly critical inspectors and disappointment that the "movers" Offerpad promises to send don't actually handle all aspects of the move.
Both Offerpad and Opendoor are best known for their core service: buying your home for cash in a convenient transaction.
However, they offer other services as well. These include incentives for people who purchase homes from them, as well as options to remain in your home for a period of time after closing.
Trade in rebate
Free local move
Opendoor's additional services
- Home trade in: Opendoor offers incentives for home trade-ins. If you purchase a home owned by Opendoor while also selling your property to them, you receive a rebate equal to 1.25% of the sale price of the first home.
- Home builder partnership: Opendoor has partnered with Lennar, a home builder, to facilitate the purchase of a new-construction home. You can trade your old home and close on the same day as your new home is ready.
- Late checkout: Opendoor offers late checkout, which enables you to rent back your old home for up to 14 days after closing.
- Direct buyer incentive: Buyers who purchase a home directly from Opendoor (or with an Opendoor partner agent) can get up to a 1% credit back at closing.
- Opendoor Home Loans: Opendoor Home Loans enables you to finance your new home purchase through the company if you choose to do so.
- Opendoor Title: Opendoor has a title company which you can use to handle your home closing process.
Offerpad's additional services
- $1,000 bonus: Buyers who purchase an Offerpad home can qualify for up to $1,000 towards their closing costs.
- Loan partnership: Offerpad has a partnership with a third party — LoanDepot — to arrange loans for buyers.
- Free local move: If you sell your home to Offerpad, the company provides a free local move within 50 miles.
- Extended Stay: Extended Stay allows you to remain in your home for up to three days after Offerpad buys it.
If you're interested in selling on the open market — potentially at a higher price than you’d get from an iBuyer — Clever can connect you with a full-service partner agent offering a discounted listing fee of just $3,000 or 1% of list price. Contact Clever today to learn more.