Offerpad is an iBuyer service that purchases homes from sellers, makes small improvements, and then sells them at a premium. Offerpad also offers trade up broker services that help sellers buy their new home before selling their current one. Offerpad does employ agents and can also help buyers and sellers list or purchase homes similar to a traditional brokerage.
Sellers submit their address to Offerpad, and Offerpad uses its internal valuation models to make an offer within a day. If the seller accepts, Offerpad schedules a home inspection that results in itemized repairs which Offerpad or the owner will fix depending on the owner's preference. After repairs are completed, Offerpad will then purchase the home from the seller, make any necessary improvements, list the home for sale, and sell the home to a new buyer.
According to most sources, Offerpad charges a 7% service fee on average, though fees can range from 6-10%.
Offerpad primarily generates revenue through service fees on each home sale. Offerpad can also make money on the price appreciation that occurs at the time of the home purchase and the time of sale. Offerpad also can generate revenue from ancillary services it offers such as mortgages. Because Offerpad also employs agents, it also makes money from traditional brokerage listing and purchase commissions.
Offerpad is privately held.
Offerpad employs agents as full-time employees. As a result, agents are paid a salary and smaller sales commission by the brokerage rather than being paid entirely based on sharing commissions via a traditional commission split.
Offerpad employs agents as full-time employees rather than independent contractors.