Offerpad is a real estate company where you can buy or sell your home, and most of the process is done online.
Do you like the idea of doing almost 90% of the process online? Well, that’s up to you, but here is what we think….
Before we talk about Offerpad, it is important that you know who we are.
Our mission is to deliver an exceptional experience to homeowners looking to sell their homes.
Just as Offerpad, we are real estate investors. But don’t be fooled, we work in a very different way.
You’ll learn more about us and how we work in this article…so keep reading, you are in for a treat ;).
Here is a link with more information about who we are.
Who are the people behind Offerpad?
Offerpad was founded in 2015 by a group of real estate professionals in Phoenix, Arizona. Since founding they have expanded to about 11 cities all over the country and are looking to keep expanding.
They recently secured $150 million in financing to keep buying homes…Yeah that’s a lot of money.
Does that mean they can pay more for your house??
Not really, that just means they can buy more houses at a time.
As you can see they are pretty big and all over the place, in comparison to us, we are focused on a more personalized experience where we listen to your problems and try to find a solution where we can both benefit and walk away feeling like we all made the right decision.
Our budget is not that big, but we definitely bring a lot of value to the table.
So, how does Offerpad make money?
Well, that’s a pretty good question. They make money by buying your home at a really deep discount and selling it back into the market to a buyer that wants a home with some equity in order to make a profit.
It’s that simple….
From your point of view, that’s basically what every real estate investor does, right? And yes, you might be right, although that’s pretty much what investors do, the process is always different depending on who you are working with and their level of knowledge in your specific market or neighborhood.
Like we said earlier, we have been buying homes in South Florida for several years and with each new home we buy we try to improve our process and the many ways we can help homeowners.
With us, you won’t feel like you are dealing with a big corporation that thinks of you as numbers in a spreadsheet, on the very first phone call, you’ll understand that we are here to help you and we are more than positive that you’ll want to know more about how we can help you.
How does Offerpad work?
Like we said in the introduction, almost 90% of the process is done online.
Here is what we know about their process based on their website:
- First you provide your property address and whatever info you have on it, like condition and all that good stuff.
- After that, their “analysts” will run the property through their “powerful” computer algorithm and come up with an offer.
- Once you accept that offer and sign the contract online they’ll come to your home and inspect it in order to come up with the things that you need to fix in order to sell to them, otherwise they would just discount it off of the purchase price at closing, yes, you read that right.
Most times you won’t get what they offered you in the first place. That’s a strategy that, unfortunately, a lot of investors use. They lock you in with a contract at an initial price, then once they do their “inspections”, they come up with a lower number, which is considerably less than what you initially agreed to.
Sounds fair? You decide, but that’s definitely not how we work.
Here is a quick overlook of our process:
- We give you a phone call to find out more about your situation and how we can be of service to you.
- After we talk, we set up an appointment to go see the property.
- At the appointment we do a walk-through of the property and make you a Cash offer where you don’t have to worry about hidden fees, what we offer is what you get.
- Once you review and sign the contract we’ll go ahead and make a deposit so you feel confident we are moving forward with the purchase of your home.
- Within 2-4 weeks we would be closing.
Now let’s talk about Offerpad fees!!
It is very important for the homeowner to know what fees he or she is going to be paying at the closing table. At the end of the day, that directly correlates with the amount of money you are going to walk away with so you have to make sure both parties are clear about this topic.
With us it’s simple, there are no fees. What about Offerpad?
Well, in their website, they clearly state that their fees are 7%, which include their closing costs.
What they don’t really tell you, at least not so proudly, is that when you work with them those fees can go up to 10%, yes, you heard that right, ten percent. They have that in a really small font in their website. If that seems a bit too high for you it’s because it is.
Do the math… if they offer you $200,000 for your home you end up getting $180,000.
That’s $20,000 of fees you can avoid by selling to guess who?
Yep, you guessed right.. US 🙂
Before you sign a contract with Offerpad.
Signing a contract is not something you should do before really doing your homework first. After you sign that contract you are on the hook to sell your home and it is very hard to walk away from a deal after signing that contract in the case you get seller’s remorse or even if you don’t agree with their fees at the closing table.
Here are a few things you should do before signing that contract:
- Make sure you read and understand everything in that contract. If you don’t understand something make sure you ask and demand an explanation.
- A few of the terms to be in the look out for are: Purchase price, deposit, closing date, inspection and special clauses or additional terms. Make sure you are clear about all of those.
- If there is something you don’t understand or don’t agree with do not sign the contract hoping you’ll solve it later. You’ll regret it.
- Make sure you get a different opinion.
Contact us and we’ll tell you what we think it’s your best option, free of charge.
3252 NE 1st Ave Miami, FL suite 207
Miami, Florida 33137
You won’t have a lack of options when it’s time to sell your home, just make sure you do your homework first.
Offerpad is one of those options, but is it the best one for you?
Well that’s up to you to decide, but whatever you end up doing, we are here to help.
Feel free to check us out and definitely give us a call should you have any questions about this topic. We are want you to feel comfortable working with us and have a great experience. Check out our reviews and see what people just like you are saying about us.