Opendoor vs Offerpad: How Do These Homebuying Companies Match Up?

Need to sell your home fast? A quick online search will return ads and websites for multiple cash buyers in your area — among them, Opendoor and Offerpad. Both promise to buy your home for cash and close quickly. But beyond this similarity, how do they stack up?

Not all cash homebuyers, or iBuyers, are the same. Some charge higher fees, or offer repair and late checkout options. Others perform an on-site home inspection while their competitor might offer virtual assessment options.

Even though you may be in a hurry to sell, your home is likely your biggest asset. It’s worth it to take the time to research these companies to find the best one for your needs. Opendoor vs. Offerpad: Find out how these companies compare.

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Editors note: Opendoor and Offerpad provide an option to list your home on the market. For this post, we’ll focus on their house-buying platforms. The specifics of buying programs can change. Please visit the company websites for the most up-to-date information.

What is Opendoor?

Opendoor is the largest iBuyer (instant buyer) in the nation. They make cash offers on houses, typically within 48 hours. They also offer a home listing option for home sellers.

If you sell to them, you can skip making repairs, cleaning your home, and keeping it clean for showings, and staging. They offer a quick closing process designed to suit home sellers who need a fast transaction or just don’t want to be bothered with the fuss of listing.

After providing information about your home through an online questionnaire, you’ll receive a preliminary offer. If you proceed, you can choose how you’d like to complete the required home assessment. You can meet with an Opendoor representative, make a live video call, or upload videos of your home with a self-guided walkthrough. Their website explains that “the walkthrough and assessment are free and come with no obligation to sell.”

Opendoor will let you stay in your house up to 17 days after you close through their Late Checkout program.

The company also sells homes that they purchase.

What is Offerpad?

Offerpad is the second-largest iBuyer company in the country. They promise you a cash offer for your home in just 24 hours. Like Opendoor, they also offer a home listing option for sellers.

Special perks of working with Offerpad include three extra days to stay in your house after closing, and they’ll pay for a local move.

When you contact Offerpad for an offer they ask you a few questions and have you upload photos of your house. Like Opendoor, they typically perform a home inspection before finalizing their offer. They also give you the option to either take their cash offer or put it on hold for 60 days while you try to sell on the open market.

Offerpad also sells the homes they purchase.

Opendoor vs Offerpad: How are they different?

On the surface, these companies have many similarities. But their differences could make a difference in the success — and profits — of your home sale depending on your selling and moving objectives.

Fees Paid

Opendoor and Offerpad have similar fee structures. The main difference is whether you decide to list with them or cancel an accepted offer..

If you accept Offerpad’s Express Cash Offer, you’ll pay a service fee that is 5% of the offer price plus 1% in closing costs. Their Flex List with Confidence, which allows you to list and keep their offer on hold, charges 6% plus an estimated 1% in buyer’s concessions. If you cancel with Offerpad, however, you’ll pay a fee that’s 1% of their offer price.

Opendoor charges a 5% service fee and an estimated 1% for closing costs. Their fee if you list with them, however, remains at 5%, unlike Offerpad which adds a percentage point. They also estimate 1% in seller concessions if you list with them, but there’s no cancellation fee.

Staying in your home after close

If you’re selling in distressed or urgent circumstances, you might not have a place to go lined up after closing. In normal home sales, many real estate agents are negotiating rent-back periods for home sellers.

Offerpad will let you stay for three days after closing. In contrast, Opendoor extends a “Late Checkout Program” to home sellers who take their cash offer. If you take advantage of this program, you can stay in your house up to 17 days after closing.

Opendoor charges a daily rate that is calculated based on home value, utility costs, and days of rent-back. They also hold a $1,000 security deposit back from your sale proceeds, keeping it in escrow and releasing it once you’ve moved out.

Help with home improvements

Want to make a few repairs to your home before selling? Sometimes cosmetic fixes or minor repairs could increase the offers you receive, putting more money in your pocket. But it can be hard to come up with the money for these repairs if you’re already struggling or your money is tied up in other aspects of your moving plans.

Offerpad seeks to solve this problem by extending a home improvement advance to homeowners. They advance the funds, interest-free and requiring no cash deposit from you, to paint, install new flooring, fixtures, or countertops, and buy new appliances. They also offer free pre-listing services such as: carpet cleaning, house cleaning, pool services, handyman services, and landscaping.

When you sell, they deduct the costs from your sale proceeds. If you accept their Express Cash Offer, it doesn’t look like they require repairs. They just lower their offer price to cover them.

Opendoor doesn’t provide any of these services, nor do they offer an advance for you to fix up your home before listing. Any repairs that they deem necessary when they make a cash offer are deducted from your offer price, and they could require that the repairs be done before you close.

Markets served

Neither Opendoor nor Offerpad is nationwide — they both cover select markets, primarily larger metropolitan areas. Depending on where you live, you may not have a choice between which company to work with.

Opendoor operates in 50 markets in 26 states and the District of Columbia, from Austin, Texas, to Tucson, Arizona, but they don’t offer all their services in every area.

Offerpad buys houses in over 800 cities and 16 states, heavily concentrated on the West Coast. Here again, their homebuying platform is not available in all areas of these markets.

How are they the same?

Opendoor and Offerpad offer several similar services and features, with a few small differences in the details.

Home value estimates

Both companies make an offer on your home by estimating its value. They look at recent comparable sales in your area, estimate your home’s condition, and make an offer on that basis. Also, because both companies resell your home for a profit, they are both likely to offer below market value.

For-sale-by-owner (FSBO) listings

What if you don’t like the cash offer they give you? Both companies allow you to list your home for sale by owner (FSBO) on their site.

With Offerpad’s Flex List with Confidence, you can put their cash offer on hold and try your luck listing on the open market. They’ll even give you a home improvement advance to make repairs and upgrades before listing, though you have to work with their program coordinator and contractors. The advance is offered interest-free.

Opendoor also lets homeowners list instead of accepting their cash offer. You can work with local industry experts to help you set your home’s price. While they say that the 5% in fees will save you versus the nationwide standard of 6%, it’s unclear if that fee includes the buyer’s agent’s half. They do not offer a home improvement program, as noted above, and instead, say that repairs will be based on the buyer inspection.

Buy and sell at the same time

Many real estate companies seek to be a one-stop-shop for their clients’ real estate needs. Opendoor and Offerpad offer programs that allow buyers and sellers to buy and sell homes simultaneously.

Opendoor’s buy-sell landing page explains that you can sell your house directly to them, get everything you need to buy a home in one place, and avoid paying for multiple moves and mortgages. You can partner with one Opendoor team every step of the way.

Offerpad’s buy-sell landing page provides separate options to buy or bundle. By bundling their services and coordinating your close dates, you can potentially save thousands of dollars and avoid paying double mortgages.

Offerpad also provides home loan mortgage services in Alabama, Arizona, Colorado, Florida, Georgia, Ohio, North Carolina, Tennessee, and Texas. You can both apply for a mortgage loan for a new purchase and refinance an existing mortgage.

Opendoor recently scaled back many of their in-house home loan services and appear to be using partner lenders to help their clients find the best mortgage solutions.

If you’re a home seller also looking to buy, we invite you to look into HomeLight’s innovative Buy Before You Sell program. This modern real estate solution lets you move into your new home now — and sell your current home with peace of mind.

Buy-sell apps

Both companies offer buy-sell apps with similar features. The apps allow customers to do everything from requesting a cash offer to shopping for a new home. They also allow you to communicate with their team members.

Opendoor’s app strives to be an all-in-one solution for buyers and sellers. It offers convenient features for shopping for and purchasing a new home, selling your current house, and closing the deal with speed and efficiency. Apple users give Opendoor’s app a 4.8 rating out of 5 stars. Google users give the app 4.2 stars. Opendoor’s apps are on Google Play and the Apple App Store.

Offerpad also describes their app as an all-in-one solution for selling your home or buying a new one. For sellers, the app is designed to be a simple and seamless way to manage the entire sale of your home 24/7. For buyers, the app provides robust features to shop for a home home using Offerpad’s smart search filters and detailed property information. Apple users give Offerpad’s app a 3.5 rating out of 5 stars. Google users give the app 3.1 stars. Offerpad’s apps are also on Google Play and the Apple App Store.

How do Offerpad and Opendoor work for homebuyers?

Whether on a browser or through their apps, homebuyers can shop for homes as if it were a transaction in the regular market. When you buy a home from Opendoor or Offerpad, however, you’re likely buying a home they have purchased and are reselling. A number of reviewers have noted that the quality of repair workmanship wasn’t up to their satisfaction (see below).

• You can shop for Opendoor homes at this link: opendoor.com/homes
• You can shop for Offerpad homes at this link: offerpad.com/buy

How do Offerpad and Opendoor make money?

Both companies make money similarly. They buy homes and make money off the fees that they charge sellers. With Offerpad’s mortgage lending services, they also make money from fees and interest charges. In addition, homebuying companies typically repair the houses they purchase and sell them, which will also bring in revenue.

Opendoor and Offerpad reviews

How do online reviewers* rate Opendoor and Offerpad?

Opendoor review ratings

Google Reviews: 1.4 out of 5 stars from 50 reviews

Google users do not give Opendoor a favorable rating compared to other review sites. Some reviews from sellers point out concerns over offer prices, which can be below market value, and the cost associated with the service fee and repairs. Negative buyer reviews have surfaced regarding the workmanship of repairs made on Opendoor properties sold through their website.

Trustpilot: 4.1 out of 5 stars, with 218 reviews

Many Trustpilot reviewers praise the Opendoor process, calling it smooth and seamless. The staff is often described with words like professional and respectful. Positive reviews also say that the video walkthrough and offer process was quick and painless. Some unhappy sellers used the term “bait and switch” to describe the difference between the preliminary and final offer.

Negative reviews from buyers who bought homes resold by Opendoor indicate general unhappiness with the quality of work done. They include complaints that they had no choice about using Opendoor’s closing attorney or title company, discoveries of concealed mold in the house, mixed up paperwork, and poor communication.

Better Business Bureau: 1.13 out of 5 stars, with 232 reviews

As with the company’s Google reviews, BBB reviewers also rate Opendoor with a low score. Sellers who posted negative reviews use the term “bait and switch” in their reviews on this site, too, describing unprofessional communication and poor service. Buyers’ negative experiences continue, from poor communication from Opendoor to repairs done improperly to issues with gas leaks. One buyer says that they didn’t disclose serious sewer and plumbing issues which would have cost $15,000 to repair, but Opendoor wouldn’t negotiate. Another had to walk away from the purchase when the appraisal came in lower than the offer and Opendoor wouldn’t negotiate, telling them instead to bring the difference in cash to closing.

Sitejabber: 1.17 out of 5 stars, with 12 reviews

This review site hosts complaints of “paperwork issues, rescinded offers after inspection, higher fees, and claims that the company was just trying to get the offer down as low as possible. As of this blog post, there isn’t a single positive review for Opendoor on this lesser-used website.

Offerpad review ratings

Google Reviews: 3.9 out of 5 stars from 309 reviews

Positive reviews on Google speak to Offerpad’s well-oiled selling and buying process. Customers say they felt the company had their best interest in mind every step of the way. Sellers express gratitude for professional, clear, and prompt communication from the Offerpad team. Several posts mention how the process of selling for cash took the stress out of their home sale journey and move.

Sitejabber: 2.07 out of 5 stars, 68 reviews.

People who left positive reviews say that they had a great experience, appreciated the professionalism displayed by the company, and found the site easy to use. While some express anger over lowball offers, they might not fully understand the iBuyer process or how a cash offer might compare to a more traditional sale using an agent. Negative reviews from some buyers say that the minimal cosmetic changes that Offerpad made when reselling the home they purchased were of poor quality.

Better Business Bureau: 4.03 out of 5 stars, over 265 reviews.

Home sellers who left reviews with the Better Business Bureau report that there were no glitches, everything went smoothly, and they received acceptable offers. A few also complained about offers they felt were too low. Buyers who purchased homes resold by Offerpad had a different experience — they complained of poorly done repairs, leaks, and shoddy work. Others say that they tried to buy homes but had offers canceled without explanation or that Offerpad didn’t communicate with their agents.

Trustpilot: 3.0 out of 5 stars, with 182 reviews

People raved that Offerpad saved them time and money, was a stress-free process, and had flexible deadlines. Negative reviews didn’t appreciate that Offerpad lowered their initial offer by over $10,000 after the home inspection, that they wanted $17,000 of cosmetic updates made, or that they felt Offerpad wasted their time.

*Review notes as of April 17, 2024

How Much Is Your Home Worth Now?

Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.

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Alternatives to Offerpad and Opendoor

Opendoor and Offerpad aren’t the only cash offer companies out there — and if they don’t operate in your city or state, you might need to look elsewhere. Here are a few other companies to contact:

• Simple Sale (a HomeLight platform)
• We Buy Houses
• Clever Offers
• Keller Offers
• Mark Spain
• Express Offers
• HomeGo
• Homeward
• Sundae.com

If you’re a home seller considering Opendoor or Offerpad, we invite you to also request a no-obligation cash offer through HomeLight’s Simple Sale platform. It’s a fast, free online tool that provides a cash offer to buy your home. Simple Sale also compares your cash offer amount with an estimate of what you might receive listing your home on the market with a top agent.

Which is better, using an iBuyer or working with a Realtor?

The answer depends on your selling objective. For speed and convenience, an iBuyer is a good option. They don’t ask you to pick up the kid’s toys, paint the spare bedroom, or change the lightbulbs. Their process moves quickly from the accepted offer to the close date, and you can get your money and move within weeks.

However, if you’re selling a home in fairly good condition and aren’t in a hurry, working with a Realtor may be the better choice. Realtors have local market expertise and can help you price your home competitively. They’ll market it so that you might receive multiple offers, which can drive the final selling price above your listing price.

Yes, a Realtor could request minor fixes and cosmetic updates, but you’ll typically see their benefit in the higher sales price. It’s worth it to talk to an experienced agent and see what they could do for you.

What real estate services does HomeLight offer?

HomeLight offers additional services, too, as well as more tools for home sellers.

• HomeLight Simple Sale: Simple Sale connects you to the largest network of cash homebuyers in the country. You can receive a no-obligation all-cash offer in 24 hours and close your home sale in as little as 10 days. Our platform will also show you options, such as what a top real estate agent might be able to fetch for your home, and who the highest-rated agents are in your area.
• HomeLight Agent Match: If you want to explore listing your home on the open market, our agent match tool will help you find an expert to talk to about your options. After you answer a few questions, we’ll provide you with the names of several top agents in your area. An experienced agent can provide a comparative market analysis to help you determine your home’s worth in its current condition, and what it might fetch with some repairs.
• HomeLight Buy Before You Sell: Through the Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency. You can also receive a guaranteed offer on your home in the event that it doesn’t sell on the open market.

* Some services are not available in all states

Additional tools and resources

• Home Value Estimator: Want to find out how much your home is worth before accepting a cash offer from an iBuyer? Our home value estimator analyzes up-to-date sales information for comparable properties in your neighborhood, asks questions about your home’s condition, and provides a ballpark estimate of its value.
• Net Proceeds Calculator: How much will you make selling your home? Use our calculator to estimate the cost of selling your home and the net proceeds you could earn from the sale.
• Home Affordability Calculator: It’s not a good idea to strain your budget, so how much house can you afford to buy after selling your current residence? After answering a few questions about income and expenses, our calculator gives you a home-shopping budget.
• Best Time to Sell Calculator: If you’re trying to sell quickly and for the most money, when is the best time to list? The best time to sell calculator analyzes sales data where you live to determine the best time for you to list your home.
• Agent Commissions Calculator: How much will you pay in commission to an agent when you sell your home, and how does it compare to Offerpad or Opendoor’s fees? Our commission calculator helps you figure that out.
• Informative blogs in the HomeLight Seller and Buyer resource centers give you access to expert advice and quick tips.