While the demand for housing is strong in most markets across the country, in today’s day and age not every seller wants to sell a home the traditional way. Scheduling showings, staging a home, and negotiating with a buyer can take a tremendous amount of time and effort, only to have the deal fall through at the last minute.
Roofstock Offers, Offerpad, and Opendoor are three iBuyer companies that pay cash to sellers that want to sell a home fast, with minimal fuss and a flexible closing date. By selling to an i-buyer, a seller can avoid the hassles of a traditional sale and close a transaction in as little as 14 days or less.
In this article, we’ll take a look at how each company works, including the fees involved and the pros and cons of each. After reading this article, a seller will be better able to decide if Offerpad, Opendoor, or Roofstock Offers is the best choice for selling a home quickly for cash.
Key takeaways
- Roofstock Offers, Offerpad, and Opendoor are three options for selling a home fast and for all cash.
- All 3 companies offer programs for a more traditional sales process if a seller declines the cash offer received.
- Roofstock is the #1 marketplace for buying and selling single-family rental homes, and has completed more than $4 billion in transactions in less than 6 years.
- Offerpad has worked with thousands of people, and claims to buy or sell a home every 10 minutes.
- Opendoor buys hundreds of homes every month, according to the company’s website.
Roofstock Offers overview
Roofstock Offers is designed for an owner who wants to sell a qualified rental property quickly and for cash. A seller doesn’t have to stage or show the home, and if the property is already rented, the tenant can stay in place and rent can be collected until the transaction closes.
If a seller declines the cash offer, a home can be listed on the Roofstock Marketplace to reach a network of global investment property buyers. After submitting a listing, the team at Roofstock performs due diligence, including obtaining a title report to give a buyer confidence to buy a home sight unseen.
Negotiations and offers are managed completely online, and Roofstock coordinates the entire closing process.
The fee structure for Roofstock Offers and the Roofstock Marketplace is similar, providing an owner with the opportunity for a quick sale without additional costs.
Fee structure
Roofstock Offers charges a service fee of just 3%, and closings can occur as quickly as 10-14 business days. If the property is already rented, the owner can keep collecting rent right up until the day of closing.
Roofstock charges sellers a competitive and transparent sales commission of 3% of the property sales price or $2,500, whichever is greater. If an investor wants to buy on Roofstock, the fee is just 0.5% of the purchase price or $500, whichever is greater.
Feature summary
- After entering the property address online, Roofstock Offers performs an instant analysis of factors to determine if the property is right for a cash offer.
- A seller can accept a cash offer or list on the Roofstock Marketplace.
- With Roofstock Offers, sellers will have listings or showings, and no appraisal or financing contingencies.
- Closings occur as quickly as 10-14 business days, and if the property is already rented the tenant can stay in place.
- Roofstock Offers operates in some of the fastest-growing real estate markets in the country, including Arizona, California, Florida, Nevada, South Carolina, Texas, and Utah.
Pros
- Roofstock’s platform provides sellers 2 ways to sell a home: Roofstock Offers for sellers looking for an all-cash sale and a quick close, and the Roofstock Marketplace to reach the company’s network of global investment property buyers.
- Receive a quick cash offer from Roofstock Offers, or list the property on the Roofstock Marketplace if a cash offer is declined.
- No maintenance, stagings or showings, and rent can be collected until the day the transaction closes.
- Roofstock Offers removes the risk of a deal unexpectedly falling through because there are no appraisal or financing contingencies for a seller to worry about.
Cons
- Not every home is qualified for Roofstock Offers, but sellers can still list on the Roofstock Marketplace.
- Roofstock Offers may not be the best choice if a home is in need of major repair.
Offerpad overview
Offerpad offers two ways to sell a home, either directly to Offerpad or to a traditional buyer.
The company’s EXPRESS Cash Offer program is designed for owners who want to sell for cash, without having to deal with listings and showings. Offerpad’s FLEX List with Confidence program is for sellers looking for maximum value and guidance from local real estate experts.
To get started with Offerpad, a homeowner enters the property address, spends a few minutes answering questions online, and receives a competitive cash offer within 24 hours. A seller can accept Offerpad’s all-cash offer or list the traditional way.
Fee structure
EXPRESS Cash Offer
Offerpad charges a service fee of 5% if a seller accepts the company’s all-cash offer. Estimated closing costs are 1% of the sales price, and Offerpad does not ask for seller concessions to reduce the closing costs incurred by Offerpad. However, the company may ask for a seller to make repairs based on a property inspection.
FLEX List with Confidence
Sellers listing a home with Offerpad the traditional way can expect to pay an estimated sales commission of 6%, depending on the market where the home is located. Offerpad estimates seller closing costs to be 1%, seller concessions to be 1%, and requested repairs (if any) to vary, based on the property inspection.
If a home needs repairs and a seller does not have the extra cash on hand, Offerpad will advance the funds with no interest and help a seller coordinate the right renovations to allow a seller to list and sell at a higher price.
Offerpad is one of the largest renovation companies, according to the company’s website, and a seller can use the company’s connections to save money on upgrades.
Feature summary
EXPRESS Cash Offer
- Competitive cash offer within 24 hours.
- No listings and no showings.
- Sellers can pick the closing day up to 90 days after the cash offer is accepted.
- Free local move with professional movers.
- Extended stay of up to 3 days after closing to allow time for packing and moving.
FLEX List with Confidence
- Keep the EXPRESS cash offer in case a buyer doesn’t offer a better price.
- Free cleaning services to get a home ready to show.
- Advance funds (no interest, no cash required) to make home improvements to help maximize value.
- Full suite of brand and technology tools to help market a home and attract buyers, including yard signage and national web visibility.
- Local experienced agents (Solution Experts) who understand the local real estate market and can help a seller maximize a home’s potential.
- Bundle and save with buy services for a new home with a credit of up to $1,000 toward closing costs based on availability in the state the new home is located in.
Pros
- Offerpad provides a seller with 2 options for selling a home: EXPRESS for all cash and FLEX for sellers who prefer a traditional sale.
- Receive an all-cash offer after entering the property address and answering some basic questions about the home online.
- If a home needs repairs, the Offerpad FLEX program will advance the funds to do the work, using the company’s renovation team and project manager.
Cons
- Offerpad is geared toward buying or selling owner-occupied or vacant housing and sellers of investment properties will have to displace their tenants to sell.
- Offerpad’s fees, of 5 to 6%, are slightly higher, which means less money for the seller.
Opendoor overview
Opendoor also offers a seller two ways to sell a home. Sell to Opendoor provides a seller with a fast cash offer and a flexible closing date, without having to show a home. A seller can also list with Opendoor to test the market and to try and attract multiple offers.
A seller can receive a preliminary cash offer from Opendoor in a matter of minutes, after entering the property address and following a few easy instructions. The next step is to do a video walkthrough of the home so that Opendoor can make its best offer. There’s no obligation to accept Opendoor’s cash offer, and a seller can list with Opendoor to maximize the sale price.
Fee structure
Sell to Opendoor
Opendoor currently charges a maximum service fee of 5% if a seller accepts a cash offer from Opendoor, although that fee has varied and been as high as 14%. Estimated seller closing costs are 1% of the sale price, Opendoor does not ask for any seller concessions, but requires repairs based on Opendoor’s own assessment.
List with Opendoor
Opendoor charges a maximum commission fee of 5% when a seller lists with Opendoor. Estimated seller closing costs are 1% of the sale price, estimated seller concessions range from 0%-2%, and required repairs are based on a buyer’s inspection.
Feature summary
Sell to Opendoor
- Receive a preliminary cash offer within minutes of entering basic property information online.
- Closing can be scheduled quickly, enabling a seller to receive the sale proceeds without delay.
- If repairs are needed, sellers can arrange for the repairs to be completed or allow Opendoor to deduct the cost of repairs from the seller’s net proceeds and the company will take care of the work after closing.
- A seller can choose the closing date to help make the real estate transaction stress-free.
List with Opendoor
- Test the market by listing a home to try and attract multiple offers.
- Receive support from local industry experts, from setting the right asking price to closing on the transaction.
- If repairs are needed, a seller can do the work or offer a buyer a credit for the estimated cost.
- A buyer can save up to $1,000 when financing with Opendoor Home Loans, and get 1% back at closing when a seller uses Opendoor to buy and sell.
Pros
- Opendoor provides sellers with two options for selling a home: Sell to Opendoor for all cash and List with Opendoor for sellers who prefer a traditional sale.
- Sellers currently pay a service charge or commission fee of 5% with either program.
- Owners who sell to Opendoor for cash can have the company deduct the cost of any needed repairs from the net sale proceeds and let Opendoor take care of the work.
Cons
- Service charge for the Sell to Opendoor program is subject to change and has historically been as high as 14%.
- A home must be owner-occupied or vacant at the time of closing, which means a tenant will need to be removed if a property used as a rental is sold with Opendoor.
Roofstock Offers vs Offerpad vs Opendoor: How to decide?
Roofstock Offers, Offerpad, and Opendoor all provide a seller with the option of selling a home fast and for all cash. While Offerpad and Opendoor collect a service fee of up to 5%, sellers with a qualified rental property pay just a 3% service fee to Roofstock Offers.
If a seller chooses not to accept a cash offer, both Offerpad and Opendoor offer a listing program, which means a seller will need to show and stage a home, make repairs, and pay a sale commission of 5%.
On the other hand, the process for selling a home with Roofstock Offers or the Roofstock Marketplace eliminates the hassles that come with a traditional sale.
There are no showings or stagings to deal with, if a home is rented, the tenant can stay in place, and the sales fee with both programs is just 3% of the property sale price, or a minimum of $2,500 on the Marketplace.
Before selling a home, an owner may wish to conduct their own due diligence to better understand the fair market value:
- Verify the sales price is fair by looking at recent sales comparables of nearby homes similar to the one being sold, and consider paying for a professional property appraisal.
- Compare the pros and cons of using Roofstock Offers, Offerpad, and Opendoor compared to a traditional listing using a real estate agent and the local MLS.
- When a home is listed for sale for a higher fee, be sure to understand how the property will be marketed, how much control a seller has over showings, and if a licensed real estate agent will be representing the seller in the transaction.
