When you sell your home to Offerpad, you can expect to pay a minimum of 8–11% of your home’s final sale price in fees and related costs.
Part of the cost is the 5% service fee that Offerpad charges — the equivalent of what you'd pay in realtor commissions selling on the MLS. You'll also pay standard closing costs about 1%.
But the biggest unknown cost when selling to Offerpad is its repair assessment, which many customers complain is unreasonable and can lower offers considerably.
The bottom line is that you'll likely net a lot less selling to Offerpad than you would with a conventional home sale.
If you want to avoid the traditional listing process, and don't mind sacrificing some potential profit to do it, Offerpad is worth considering.
- Requesting an offer is free, and you're under no obligation to accept it. Just be sure to compare their offer alongside other top-ranking competitors.
If you want to avoid repairs without sacrificing your bottom line, you're likely better off selling your house as is to a traditional buyer.
- Recent survey research shows that home sellers who opted for a non-traditional sale (e.g., iBuyer, cash buyer, FSBO) were 64% more likely than traditional sellers to say they didn't get their desired profit.[1]
- Moreover, iBuyer purchases represent less than 0.5% of home sales in the U.S[1] — meaning that the overwhelming majority of sellers find a better deal on the open market.
If you're on the fence about which route to choose, we recommend starting with Clever Offers.
With Clever Offers, you get the best of both worlds. You can compare instant cash offers worth up to 100% of your home's value. You can also test the waters with a no-obligation 7-day MLS listing, allowing you to sell as is for the highest possible price. Answer a few quick questions and start comparing offers.
What fees does Offerpad charge?
| Cash offer fees | Listing fees | |
|---|---|---|
| Service or brokerage fee | 5% | 6% |
| Closing costs | ~1% | ~1% |
| Repair concessions | Vary based on inspection | Negotiated with buyer |
| Total* | 6% + repairs | 7% + repairs |
Offerpad gives you two options for selling a home: Sell directly to Offerpad for cash or list with Offerpad using its cash offer as a backup. Offerpad's fees depend on which path you choose to sell your home.
Offerpad's Cash Offer fees
Offerpad’s main service is its iBuying program, which lets you sell your house directly to Offerpad for cash. The company gives you a quick cash offer and lets choose a closing date between 8 and 90 days out.
The fee for Offerpad's cash offer is 5% of the home sale price. However, you'll also pay traditional closing costs and variable repair costs, which Offerpad presents with its final offer based on its home inspection. It's worth noting that Offerpad's repair costs can be considerable.
For example, during a Zoom interview, home seller Bradley Carpenter recalled accepting what seemed like a fair offer from Offerpad. But after the inspection, Offerpad lowered its offer by $40,000. He ended up selling his home to Opendoor, which charged him only $7,000 in repair fees.
If you decide to cancel more than 4 days after accepting Offerpad's final offer, you'll pay a 1% cancellation fee.
Listing your home with Offerpad
As an alternative to its cash offer program, Offerpad allows you to list your home for up to 60 days on the open market with an Offerpad real estate agent. If your house doesn’t sell, you have the guarantee of a cash offer in your back pocket.
Listing through Offerpad comes with a 6% brokerage fee, which covers both the listing fee and buyer's agent commission — both are typically paid by the seller.
Offerpad will provide staging and cleaning services to get the house in market-ready condition. You can also take out an interest-free loan from Offerpad for improvements like painting, flooring, and new appliances. You'll pay back the loan at closing.
How do Offerpad fees compare with top alternatives?
Offerpad fees vs. Opendoor fees
Like Offerpad, Opendoor charges a 5% service fee, which is similar to realtor commission in a traditional sale. However, Offerpad has a 1% cancellation fee if you back out after signing the purchase agreement, and Opendoor doesn't have a cancellation fee.
If you need to stay in your house after closing, Offerpad allows you to do so for free for three days and also offers free local moves. Opendoor lets you stay for up to 17 days, but you have to pay a daily fee (based on your home’s rental value) and a $2,000 security deposit.
Offerpad fees vs. realtor fees
If you opt to list with Offerpad, you'll pay a 6% brokerage fee, which is slightly more than the national average of 5.44%. However, you won't have the luxury of choosing your own agent.
Additionally, while Offerpad's home prep program is a definite draw, many brokerages offer similar home prep programs through partnerships with bridge loan (or buy-before-you-sell) providers and local contractors.
Given the number of highly-rated low commission real estate options available, you may find better value elsewhere — with the flexibility to pick your own agent.
How much does Offerpad charge for repairs?
When you sell your home to Offerpad, repairs are the biggest variable. They’re hard to predict and can reduce your net sale amount by tens of thousands of dollars.
In any sale, it's normal for buyers to negotiate over repair credits. Based on an inspection, buyers identify repairs they want and then request a discount equivalent to the estimated cost of fixing those items.
The same is true with Offerpad. When you accept Offerpad's initial cash offer, the company will send a third-party home inspector to your home to evaluate its condition.
In a traditional real estate transaction, you can negotiate the cost of repairs with the buyer or simply reject any repair requests altogether. The buyer can choose to pay for the repairs themselves, keep negotiating, or walk away.
Repair credits work differently with Offerpad. Instead of negotiating the cost of repairs, Offerpad gives sellers two options:
- Agree to provide a repair credit, which deducts the full cost of repairs from Offerpad’s cash offer
- Hire a contractor to complete the repairs to Offerpad’s specifications
In a seller's market — one where the demand for homes outpaces available listings — you may be well positioned to sell your home without having to make repairs or concessions.
Or, if you're willing to shop around, you can often find an investor or even a realtor who's willing to complete the repairs upfront, then deduct their costs and any additional agreed-upon amount from the proceeds when you sell. That way, you can maximize your home's value without paying out of pocket for needed repairs.
In either case, you'd probably earn more from the sale than you would selling to Offerpad.
Offerpad reviews about repairs
Offerpad has a weighted average rating of 4/5 stars based on ~2,400 reviews across sites like Google, Trustpilot, and the Better Business Bureau. Despite the moderately high rating, complaints about repairs are common.
Some sellers are socked when Offerpad adjusts their offer following a home inspection — sometimes dropping the offer price by $10,000–20,000, or more.
Other sellers found that Offerpad charges surprisingly high repair fees — which they learned when contractors offered work at a fraction of the price.
Additionally, some buyers who purchased homes from Offerpad reported major issues with the quality of Offerpad's repairs.
Still, some customers do feel Offerpad's repair costs are fair. For example, one seller knew their home's major systems were outdated, so there were no surprises when Offerpad requested some big ticket repairs.
» READ: Our in-depth Offerpad review
Does Offerpad charge hidden fees?
Most Offerpad fees are transparently listed on its website, though it’s not obvious that the company charges a 1% late cancellation fee.
When Offerpad provides the initial cash offer, the seller must sign a purchase agreement before the deal can proceed to the inspection stage.
This is when it gets tricky. When Offerpad provides the inspection report, it will also provide an updated cash offer that reflects the repair credits, which some sellers claim lower the sale price by as much as 20%.
At this point, you'll have four days to consider Offerpad’s final offer. It's a tight turnaround, especially if you want to get a second opinion from a contractor or inspector. During this window, you can:
- Accept the offer and agree to the repair credit
- Negotiate over the repair credit
- Reject the offer and walk away
But if you decide to back out AFTER this four-day window, you'll be subject to a cancellation fee: 1% of Offerpad’s initial cash offer.
Are closing costs included in Offerpad fees?
No, Offerpad's service fee does NOT include closing costs. You should set aside 1–3% of the sale price to cover these expenses.
Closing costs vary by location but are typically shared by the buyer and seller. In general, sellers pay administrative fees, transfer taxes, and title insurance.
How much do Offerpad's extra services cost?
If you decide to sell to Offerpad, you can take advantage of several perks at no additional upfront cost:
- Extended Stay. Offerpad allows you to stay in your home for up to three days after closing. Offerpad would hold $3,000 of your proceeds as a security deposit, to be refunded after you move out.
- Local Move Program. If you’re moving within a 50-mile radius, Offerpad will pay for your moving services. The company partners with local movers and will pay them directly to move homes up to 2,800 sq. ft. You'll be responsible for the packing and any additional costs, such as extra insurance for expensive items.
- Home Improvement Advance. Additionally, Offerpad advertises a home improvement advance at no upfront cost, which can be put toward repairs and minor updates prior to listing. However, you may pay interest or other fees on the advance at closing.
Can you negotiate with Offerpad?
Yes — according to Offerpad, sellers can negotiate the offer price and repairs. However, the reality is that Offerpad is unlikely to budge on either. In general, you'll have much more room to negotiate if you list your home on the open market.
You'll have a better shot at successfully negotiating with Offerpad, though, if you’re armed with information. Recent appraisals, inspection reports, and maintenance reports can help you make a stronger case for a higher offer or lower repair credit.
When it comes to repairs, gather as much information about your home as possible ahead of time. For example, if Offerpad suggests installing a new roof, but you have documentation showing that your roof isn’t due for an upgrade for several years, you may be able to successfully push back.
You have much more room for negotiations when selling your home with a real estate agent — especially if you work with a company that's already negotiated commission savings on your behalf.