Opendoor vs. Offerpad: Offerings, Reviews, Alternatives

Andrew Whytock

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Andrew Whytock

January 19th, 2022
Updated January 19th, 2022

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Fees | Locations | Time to close | Repairs | Customer reviews | Additional Services | FAQ

Opendoor vs Offerpad

Opendoor and Offerpad are both iBuyers: companies that will make an offer on your home within 24 hours and purchase your home for cash.

Both companies make it possible to sell your house with no showings or open houses, flexible closing timelines, and no out-of-pocket costs for repairs.

However, Opendoor is the best overall choice for home sellers because it covers the most markets, charges no cancellation fee, and tends to pay more for homes.[1]

Opendoor vs. Offerpad


Opendoor
Offerpad
💰Fees
5% + 1–3% closing costs, 1–2% repair costs
5% + 1–3% closing costs, 1–2% repair costs
14–60 days
8–90 days
4.3 stars (2718 reviews)
3.7 stars (292 reviews)
45 cities
25 cities

Fees

Both Opendoor and Offerpad charge sellers a 5% service fee. The most important difference between the two companies is that Opendoor allows sellers to cancel without penalty anytime before closing whereas Offerpad charges a 1% cancellation fee.

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
Cancellation fee (1%)
$0
$3,500

On top of these fees, just like in a traditional sale, you’ll also have to cover certain closing costs. These costs vary by sale and are usually between 1–3% of the sale price. Closing costs aren’t covered by Opendoor or Offerpad. The 5% service fees may seem substantial but they’re comparable to the 6% commission commonly paid to agents during traditional real estate transactions.

Editor’s note: 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 the home will likely sell for more money on the open market.

Sellers who choose to list with a real estate agent don't have to pay 6% to get full service. Clever Real Estate can connect you with top-performing local agents who charge just 1% in listing fees, saving you thousands of dollars when you're ready to sell.

⚡ Connect with a top agent now!

Time to close

🔑 Key takeaway: Offerpad offers a little more flexibility. If you want to close quickly, it’s faster than Opendoor. If you want to take your time, Offerpad can give you 90 days vs. Opendoor’s maximum of 60.

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. The buyer must secure financing and wait for their bank to issue a loan. iBuyers pay cash, so you can finish your sale 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. The minimum time to close varies by state, but it could be as short as eight business days. You can also take more time if needed — up to 90 days.
  • Opendoor provides an offer within 24 hours. And you can set your closing date for between 14–60 days from the time you accept their price for your home.

Locations

Opendoor is active in 45 markets while Offerpad covers 25. They’re both active in major iBuyer markets like:

  • Phoenix
  • Atlanta
  • Dallas
  • Charlotte, N.C.

Repairs

After you’ve completed the inspection process, both Opendoor and Offerpad will give you a cost for repairs — typically 1—2% of the final sale price.

Opendoor will deduct the cost of repairs from your sale price when it pays for your home. You don’t have to worry about completing the repairs yourself, or paying for them out of pocket. However, you don’t have any control over how much the repairs cost and you have very limited room to negotiate with Opendoor if you disagree with the repair costs.

» LEARN: How to negotiate with Opendoor.

Offerpad has three options for how you can handle repairs:

  • Offerpad can deduct the cost of repairs from the final sale price. This means you won't pay for repairs out of pocket or worry about completing them before closing — but you won’t have any control over the cost.
  • You can hire a contractor to take care of Offerpad’s list of repairs. This gives you control over the process and costs. But you have to pay for repairs out of pocket and Offerpad has to approve the work before closing. This can potentially delay your sale.
  • You can decline to cover repairs or issue Offerpad a repair credit. Offerpad might not want to buy your home in this case. If the company decides to cancel the sale, there’s no penalty to either party.

Though Offerpad gives you more control over how the repairs are conducted, it only gives you four days to shop around and make a choice. If you don’t already have a relationship with a licensed contractor, it might be difficult to get the cost estimates you’d need to make an informed choice.

Some sellers who have worked with Offerpad and Opendoor reported that their offers dropped significantly when they factored in the repair costs

Reviews

We analyzed hundreds of reviews from actual Opendoor and Offerpad customers. Opendoor has been reviewed thousands more times than Offerpad and has more positive reviews.

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.

Kim review

However, that's not to say no one has any complaints. In fact, some reviewers complained 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.

Anonymous review

Offerpad's sellers praised the assistance they received with repairs, as well as the easy selling process.

Katherine review

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.

Berneice review

Additional Services

Both Offerpad and Opendoor are best known for their core service: buying your home for cash in a convenient transaction.

However, Offerpad and Opendoor offer other services as well. These include options to stay in your home for a few days after closing and home loans for buyers who need a mortgage.

Feature
Opendoor
Offerpad
Free three-day Extended Stay


21-day Late Checkout


Home loans


Title insurance


Free local move


Opendoor's additional services

  • 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 your new home is ready.
  • Late Checkout: Opendoor enables you to rent your old home for up to 14 days after 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's title company can handle your home-closing process.

Offerpad's additional services

  • Offerpad Home Loans: Offerpad Home Loans can help you finance your new home purchase.
  • Home Builder Alliance: Offerpad partners with more than 40 home builders across the country. Sellers who take advantage of this program are given an additional six months to close to accommodate the building process.
  • Free local move: If you sell your home to Offerpad, the company provides a free local move within 50 miles.
  • Extended Stay: Offerpad allows you to remain in your home for up to three days after closing.

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.

💰 Compare hand-picked agents, get incredible savings

Find top-rated agents from local brokerages, and get pre-negotiated listing fees of just $3,000 or 1%.

Clever's service is 100% free, with zero obligation. Interview as many agents as you like until you find the perfect fit — or walk away at any time.

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