If you’re planning to sell your home, you may have heard that using an online buyer can help you get a fair offer quickly. Is it true? And if it is, should you look at Opendoor or Offerpad?
Both Opendoor and Offerpad claim that they can make your home sale quick and painless while getting you a strong offer. You skip the traditional sales process and walk away with cash in hand in just a few days.
Of course, iBuyers aren’t always what they claim to be — especially when it comes to fair offers. Remember, their goal is to turn around and sell your home for a profit, so they aren’t going to give you full market price.
If you want to get the right price for your home while selling quickly and easily, consider working with a Clever Partner Agent. A low-cost experienced realtor will help you get a better price while still selling fast.
Overview of Opendoor
Opendoor got started in 2014 and today has served over 30,000 customers. They currently operate in only 20 cities, which includes most major metro areas. They have a headquarters in San Francisco and have 1300 employees overall.
The way Opendoor works is that they give you a cash offer on your home based on local market data and the information you provide in your request. They provide a written offer with a list of fees. The commission alone is 9% or more, and they charge closings costs as well.
Then, they assess your home and deduct any needed repairs from the home offer they have given you. Finally, you get paid in a few days after accepting the amended offer.
Once they have purchased a home from you, the list it for sale on their website for someone else to buy — giving Opendoor a handsome profit, of course.
Unfortunately, this company (along with Offerpad) has made its public Yelp reviews very difficult to find. If you want to find Opendoor’s Yelp reviews, you have to go directly to this link. An online search will not turn them up.
Overview of Offerpad
Offerpad is newer, having recently closed their Series C funding round for $975 million. They currently operate in 12 major cities and hope to expand to 30 by the end of the year.
They operate very similarly to Opendoor. You fill out an informational survey about your home and they use computer algorithms to determine an offer. Once your offer is ready, you’ll be able to add additional special options like a free local move within 50 miles or the ability to stay in your home up to three days after closing.
After the offer is accepted, the company will do an inspection of your home to verify the condition. It’s likely that they reduce the offer if they feel repairs are needed, the way their competitor does, but they don’t state it explicitly.
There are also significant service fees for selling your house to Offerpad, and they range between 6%-10%.
Overview of Clever
How does Clever stack up to these two iBuyers?
The first thing to keep in mind is that you’ll get a lot more for your home if you sell with a traditional realtor like a Clever Partner Agent. Not only will the offer be better, but you’ll also be keeping the full price for yourself. iBuyers focus on making a low offer so they can make a profit on the sale afterward.
Next, both Opendoor and Offerpad charge very high fees, well above the 6% you would pay with a traditional realtor. Clever charges lower fees. Our listing agents are able to give you a full-service, full profit experience for a flat fee of $3,000 (or 1% if the home sells for $350,000 or more).
The buyer’s commission will still be 3%, so you’ll pay no more than 4% commission – compared with 7%-9% with the iBuyers.
Will you still be able to sell quickly? Most of the U.S. is in a strong seller’s market, so homes have offers almost as soon as they hit the market. Many times there are multiple offers, giving you the chance to benefit from a bidding war. That means you may sell for even more than you expect.
What about repairs? You’ll notice that both Opendoor and Offerpad deduct the cost of repairs from their offers, so you aren’t gaining anything by working with them. In fact, you may be able to do repairs yourself less expensively than their estimate.
Why Sell With Clever?
Selling with Clever simply makes sense. You’ll pay lower fees than a traditional realtor, while both Opendoor and Offerpad charge higher fees than a traditional transaction.
You’ll get a much better price for your home instead of facing a lowball offer from someone trying to make a profit at your expense. You’ll be able to work with a full-service realtor who will negotiate on your behalf, giving you the chance to get an even better result on your sale.
Most of all, you’ll get the benefit of a strong buyer’s market. You may be able to choose the best of multiple offers or even get buyers in a bidding war. All of that extra cash will go in your pocket, not the pocket of an iBuyer. Of course, the strong market also means you’ll be able to sell your home quickly.
Ready to get started? Fill out our online form today. We’ll answer all your questions and set you up with a no-obligation consultation with an experienced local realtor.