Offerpad is one of the largest iBuyers in the U.S., offering property owners the opportunity to sell their homes quickly for cash, with no need for renovations or showings. The company makes offers within 24 hours and can close in as quickly as 8 days.
In exchange for the convenience of a quick cash closing, Offerpad offers less than market value and charges a service fee of up to 8% of the final sale price, equal to $32,000 on a $400,000 home sale.[1] Sellers may also pay significant repair fees and closing costs.
Before accepting Offerpad's offer, be sure to have an accurate idea of your home value. That way, you'll know exactly how much money you're leaving on the table. You should also look at offers from a few iBuying competitors to make sure you're getting the best possible terms.
An offers marketplace like Clever Offers can save you a ton of time sourcing offers and figuring out your best options — which is why it's our top-rated Opendoor competitor. Compare the highest cash offers for your home and sell in as little as 7 days — no added fees or pressure to move forward.
Offerpad fees for selling a house
Below is a breakdown of Offerpad fees with example costs based on a $400,000 home.
| Fee type | Cost | Amount on a $400,000 home |
|---|---|---|
| Service fee | 8% | $32,000 |
| Closing costs | 1-3% | $4,000-$12,000 |
| Repair costs | Depends on home condition | Varies* |
| Cancellation fee | 1% | $4,000 |
| Total | 10%+ | $28,000-44,000; $4,000 to cancel |
Service fee
While Offerpad's service fee used to be a flat 5%, the company recently unveiled a new business model with a different fee structure.
Launched in May 2025, Offerpad HomePro[4] matches cash offer seekers with local Offerpad certified agents ("HomePros") who present both cash and listing options, including traditional listings with backup cash offers. Offerpad no longer discloses its service fee on its website, but a conversation with Offerpad's HomePro Assistant revealed that the typical fee for its cash offer is now 8%.[1]
This charge covers the company’s costs, such as home inspections, necessary repairs, and marketing the home. The exact percentage may vary by market.
Through Offerpad's HomePro model, sellers can also choose from additional options including traditional listings with backup cash offers or hybrid Homeward offers that provide cash upfront with the opportunity to list for additional upside.
Closing costs
Homeowners are expected to cover closing costs, which are a part of any property sale. The exact amount depends on your state and the home’s value, but it usually ranges between 1-3% of the home’s purchase price. Offerpad’s closing costs cover title insurance and title search fees, taxes, and escrow fees, among other expenses.
Repair costs
Repair costs can vary significantly depending on the home's condition and age, and represent one of the biggest unknowns when selling to Offerpad. They're based on an in-person home inspection conducted after you've signed the purchase agreement, and customer reviews indicate these costs can be substantial.
If the repair estimate and adjusted final offer represent too steep of a price drop, you have the option to cancel. Just make sure you do it before signing the final purchase agreement to avoid penalties.
Cancellation fee
This fee applies only if you decide to back out of the contract after accepting the offer and amounts to 1% of the total offer price. To avoid it, compare Offerpad’s offer to other options and ensure you want to proceed with Offerpad before signing the contract. If you really need to back out after signing, read the contract to determine the deadline for getting out of the contract without paying any fees.
Total cost
Expect to pay Offerpad between 10-14% or more in fees. This includes the service fee, closing costs, and potential repair costs. For example, on a $400,000 house, you can expect to pay anywhere from $40,000 to $48,000 or more to Offerpad at closing, not including potentially significant repair deductions.
Offerpad fees vs. realtor fees
Here are the total fees and final profit to the seller on a $400,000 house, comparing Offerpad to both traditional and discount brokers.
| Type of cost | Offerpad | Traditional agent | Discount agent |
|---|---|---|---|
| Sale price | $340,000-380,000* | $400,000 | $400,000 |
| Service / commission fee | $27,200-30,400 (8%) | $24,000 (6%) | $12,000 (3%) |
| Closing costs | $4,000 (~1%) | $4,000 (~1%) | $4,000 (~1%) |
| Repairs | Based on inspection** | Negotiated with buyer | Negotiated with buyer |
| Profit to seller (before repairs) | $308,800-345,600 | $356,000 | $368,000 |
**Repair costs for Offerpad are determined by their home inspection and can vary significantly
Offerpad fees: Key takeaways
Offerpad’s 8% service fee is slightly higher than what you'd pay a traditional agent. However, sellers often walk away with significantly less cash for two major reasons.
- First, Offerpad usually offers below market value — often as much as 15% less, according to customers — to account for resale risk, holding costs, and repairs. That discount is the trade-off for speed and convenience.
- Second, real estate agents help you maximize your home’s value. A good agent knows how to prep, price, and market your home to attract strong offers, often above asking. That support alone can add tens of thousands to your final sale price. Meanwhile, Offerpad charges you for the repairs and improvements needed to make your house market-ready AND cashes in on the upside.
- Agents also negotiate. Offerpad typically doesn’t. Its offers, fees, and repair costs are take-it-or-leave-it, unless the company made a mistake. But agent commissions? Those are almost always negotiable.
If you want to save on commission while still selling for top dollar, consider working with a low-commission realtor. Many charge as little as 1.5% (half the typical listing fee), without cutting corners on service.
For example, Clever Real Estate pre-negotiates 1.5% listing fees with top local agents. You’ll get full-service support and expert guidance, and keep more of your home’s value. You try Clever with no obligation by answering a few quick questions to see who you're matched with.
Offerpad fees vs. competitors
| Company | Service model | Service fee | Closing costs | Closing timeline |
|---|---|---|---|---|
| Offerpad | Direct cash offer (~85–95% of market value) | 8% | ~1% | As fast as 8 days |
| Opendoor | Direct cash offer (~85–95% of market value) | 5% | ~1% | As fast as 10 days |
| Clever Offers | Compare multiple offers and sell-fast solutions | None | Vary by buyer | 1–3 weeks |
| HomeLight Simple Sale | Compare multiple offers and sell-fast solutions | None | Vary by buyer | 1–3 weeks |
| Grandview Homes | Direct cash offer (~65–75% of market value) | None | None | 1–3 weeks |
| We Buy Ugly Houses | Direct cash offer (~65–75% of market value) | None | None | 1–3 weeks |
Opendoor is one of the largest Offerpad competitors, and sellers often choose between the two. At 5%, the service fee for Opendoor is slightly less, and some clients mention receiving a better offer from Opendoor. However, in cases of a competing offer, Offerpad’s sales rep might be able to match the Opendoor price.
The biggest difference in fees between Offerpad and Opendoor is the cancellation fee. Offerpad charges sellers who back out of a contract a 1% fee, whereas Opendoor allows them to cancel their contract for free at any point.
We always recommend comparing multiple offers before making a final decision — including from 'we buy houses' companies, such as We Buy Ugly Houses or Grandview Homes. These companies typically offer less than iBuyers, but they'll purchase homes in any condition, and you'll know the final offer amount upfront.
If you want to sell quickly but still get competitive offers, services like Clever Offers can help you easily compare offers from multiple vetted cash buyers – many ready to close in just a week. There are no added service fees — just a better shot at getting close to market value, since you'll have multiple offers on the table.
HomeLight Simple Sale is another marketplace that can connect you with local investors, but you'll be automatically paired with local listing agents also, which doesn't suit every home seller.
The bottom line: Is Offerpad worth it?
Offerpad could be worth considering for certain types of sellers. If you want to sell quickly without worrying about repairs, staging, showing, and more, then, Offerpad could be an ideal option. The new HomePro model also provides additional flexibility by offering both cash and listing options through certified agents.
However, with service fees now at approximately 8%, plus potentially significant repair deductions, the cost of Offerpad's convenience has increased substantially. If you don't want to leave money on the table and have time to compare other solutions, consider a cash offer company or working with a realtor (preferably one offering commissions savings) first. That way, you can maximize your profit and turn to iBuyers later if needed.
FAQ
Will Offerpad negotiate on its offer price?
It is sometimes possible to negotiate an offer with Offerpad. The company can revise the price if it overlooked some recent repairs or renovations, or if it simply made an error in its appraisal. It may be possible to negotiate with Offerpad if you show them a better offer from another iBuyer.
Does Offerpad pay more than Opendoor?
Offerpad may pay somewhat less than Opendoor, as some clients shared in reviews. According to company financial reports, the company purchases only about a fifth of the homes that Opendoor does.
Are there hidden fees when selling with Offerpad?
Most of the fees are clearly stated on the website. However, if a seller wants to back out of the sale after Offerpad completes the inspection, they will face a 1% penalty. This cancellation fee is mentioned in the contract.
Can you use an Offerpad offer as a backup option?
Yes, you can list your home on the market with any agent while using Offerpad's cash offer as a backup. If you use Offerpad's HomePro program, the offer remains good for 60 days while you test the traditional market.
