iBuying Giant Tweaks Model to Pursue Listings
June 2, 2020
Offerpad, one of the nation's largest iBuyers, is expanding its services beyond instant cash offers on homes to also give sellers an opportunity to list homes publicly. The firm announced Monday the launch of its Real Estate Solutions Center, which includes concierge services for getting homes ready to list on the market.
To start the process, homeowners can share details of their home and upload pictures. The home is evaluated by Offerpad’s real estate team, and homeowners are presented with a cash offer and other selling options within 24 hours. The homeowner then has a choice: They can sell their home instantly to Offerpad or partner with Offerpad to list the home publicly.
If they choose to list publicly, Offerpad works more like a listing agent. Homeowners can also use the company’s home preparation services to get the home ready to list, with services such as carpet and house cleaning. Offerpad fronts the money for any renovations and the seller then reimburses the cost at closing.
The homeowner can also choose to accept Offerpad’s initial cash offer at a later time, even after listing publicly.
Offerpad’s new listing program puts it in line with other real estate brokerages, such as Redfin and Realogy, which have offered homeowners a choice of whether to list on the MLS or take a cash offer to sell instantly. Offerpad will continue to partner with Keller Williams with its instant cash offers or listing options as well.
Offerpad has been hiring real estate agents since beginning a pilot program eight months ago to help expand its services into listings and showings.
“We’re known for providing quick competitive cash offers, which will always remain a core offering,” says Brian Bair, Offerpad CEO and founder. “This is by no means the ‘traditional way’ to sell a home. … Sellers are now, more than ever, in control of their experience through our solutions center—we provide solutions, they select their option.”
Prior to starting Offerpad in 2015, Bair was a real estate professional for eight years.
Offerpad, like other iBuyers, temporarily stopped services during the onset of the pandemic in the U.S. in March. On May 6, it began resuming cash offers to more than 800 cities across the country. At that time, it also began promoting its HealthyVerify program, which spotlights how home sellers can have a contactless experience while selling their home to help ease concerns during the pandemic.
Updated: July 02, 2020