My Offer Pad Experince

5 Replies

For those of U that have Offer Pad in your markets competing against the wholesalers and Brokers.

Here is my experience.

Website easy to use.. put in my details of my Town home in Vegas..

follow up E mail saying my offer would be there shortly.

2 days later e mail saying my offer was ready.. ask some trial close questions Like will you need help moving and what day would you like to close.

Contract is pre filled out in Docusign .. in reviewing contract.

The Buyer Offer Pad makes it known they are not representing me as an agent but they also point out that they ARE licensed agents and brokers.

Offer is straight forward but slanted to the buyer.. as in Seller pays all closing costs.

there is a 7.5 % convenience fee.. thats deducted from the offer price.

15 days for due diligence which i suspect when they walk through they judge your level of sophistication and probably come back with more concessions.  

OFFER:  305k minus 7% for a net of 280 ish minus closing costs. and further negotiation if any..  

ALSO HIGHLIGHTED is mandatory sellers sales disclosure document filled out by seller and signed. 

Reality of this property on MLS would sell for 400 to 425k as is .

Agent then called to follow up and of course went through the normal wholesalers spew.. NO showings as is we can close etc etc.

what they did not provide though was a proof of funds I should have inquired about that.

So just a slicker more automated ( YET LICENSED) wholesaler.

Originally posted by @Jay Hinrichs :

For those of U that have Offer Pad in your markets competing against the wholesalers and Brokers.

Here is my experience.

Website easy to use.. put in my details of my Town home in Vegas..

follow up E mail saying my offer would be there shortly.

2 days later e mail saying my offer was ready.. ask some trial close questions Like will you need help moving and what day would you like to close.

Contract is pre filled out in Docusign .. in reviewing contract.

The Buyer Offer Pad makes it known they are not representing me as an agent but they also point out that they ARE licensed agents and brokers.

Offer is straight forward but slanted to the buyer.. as in Seller pays all closing costs.

there is a 7.5 % convenience fee.. thats deducted from the offer price.

15 days for due diligence which i suspect when they walk through they judge your level of sophistication and probably come back with more concessions.  

OFFER:  305k minus 7% for a net of 280 ish minus closing costs. and further negotiation if any..  

ALSO HIGHLIGHTED is mandatory sellers sales disclosure document filled out by seller and signed. 

Reality of this property on MLS would sell for 400 to 425k as is .

Agent then called to follow up and of course went through the normal wholesalers spew.. NO showings as is we can close etc etc.

what they did not provide though was a proof of funds I should have inquired about that.

So just a slicker more automated ( YET LICENSED) wholesaler.

It all comes down to the same thing that is always has..........The best way to sell any property is with full marketing exposure created by a sophisticated Real Estate Agent. Everyone keeps saying Realtor's are dying bread or will be replaced by this or that shiny thingy. 1st it was Zillow then it was Redfin blah blah blah blah blah.................The Real Estate Agent model is here to say. End. Of. Story.

@James Wise   well from my perspective these are licensed agents / brokers buying listings.  

and by low balling like this they should make far more than just a listing fee.

I am sure there is big VC money behind this and they are probably burning through their marketing dollars. 

But if your considering selling your home as is with no showings.. and these guys engage compared to billy bob wholesaler doing it on my own have no money and the only way i going to get the deal done is to assign the contract .. I could see people going with these folks as they are far more professional in appearance sake anyway.

Originally posted by @Jay Hinrichs :

For those of U that have Offer Pad in your markets competing against the wholesalers and Brokers.

Here is my experience.

Website easy to use.. put in my details of my Town home in Vegas..

follow up E mail saying my offer would be there shortly.

2 days later e mail saying my offer was ready.. ask some trial close questions Like will you need help moving and what day would you like to close.

Contract is pre filled out in Docusign .. in reviewing contract.

The Buyer Offer Pad makes it known they are not representing me as an agent but they also point out that they ARE licensed agents and brokers. 

Offer is straight forward but slanted to the buyer.. as in Seller pays all closing costs.

there is a 7.5 % convenience fee.. thats deducted from the offer price.

15 days for due diligence which i suspect when they walk through they judge your level of sophistication and probably come back with more concessions.  

OFFER:  305k minus 7% for a net of 280 ish minus closing costs. and further negotiation if any..  

ALSO HIGHLIGHTED is mandatory sellers sales disclosure document filled out by seller and signed. 

Reality of this property on MLS would sell for 400 to 425k as is .

Agent then called to follow up and of course went through the normal wholesalers spew.. NO showings as is we can close etc etc.

what they did not provide though was a proof of funds I should have inquired about that.

So just a slicker more automated ( YET LICENSED) wholesaler.

 My experience with Offerpad was similar. A year ago I thought I'd see what they were up to. I filled out their website form, and submitted the property.

The actual comps for the property were in the $300,000 range.

Their offer was $225,000 

They also wanted a 7.5% fee that I had to pay. That is odd to me since I could hire a real estate agent for 6%. Oh, well.

Then they reduced the offer when we met at the property saying that it needed repairs. 

I asked what they would repair since it had a brand new roof, the kitchen and baths had just been upgraded, new tile and carpet throughout and fresh paint on the walls. 

After the two of them stammered and said something unintelligible (they couldn't come up with anything) I told them I had some other important thing to do like watch the grass grow and politely declined their offer. I think my exact words were "You people are nuts". 

But they insisted they could close quickly.

So if you take a value of $300,000 and sell to them for $225,000 and subtract whatever they talk you down to, plus pay the 7.5% fee ($16,875) plus your closing costs, you have taken a hit of about $91,875.

I still keep getting emails from them saying "The neighborhood has improved and your house is now worth . . . " always about 25% below actual value, and "they can close quickly". Lol

Weird. There’s another thread going where the seller netted 1% less than his arv net without doing any repairs from offerpad. 

In my test with them in Las Vegas a year ago their offer was my value (high end of Zillow) minus 12%. (6% commission and 6% “market adjustment”) You guys say you’re getting offers 30% below fmv now? maybe they were getting too many accepted?

These companies CANNOT make money by paying market value for homes. They are typically making it up in extra selling fees and by beating you up on repair credits. Although 30% is a lot. I’m guessing they were paying more previously to get people to provide favorable reviews and now they’re offering what they actually want to pay for a home, so they can actually make a profit. 

They have to pay for all that advertising somehow, ya know.