Zillow Offers shut down on November 2, 2021, after the company accumulated more than $500 million in losses from mispriced home purchases. Offerpad is still active, operating in 23+ U.S. markets and charging a service fee of 6 to 10% while typically offering 70 to 80% of fair market value on homes it buys.
Sellers landing on this page looking for a live comparison need to know that Zillow Offers is permanently closed. Zillow now routes sellers who request a cash offer for home to Opendoor rather than buying properties itself. Offerpad remains the active iBuyer in this comparison, and the relevant question is whether its fees and instant offer terms make sense for your situation.
This guide covers what happened to Zillow Offers, how Offerpad’s four-step process works, what sellers actually pay in iBuyer fees, whether Offerpad’s offers are competitive, and how Offerpad stacks up against Opendoor in 2026.
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Offerpad vs Zillow
Offerpad vs Zillow Offers at a glance
The table below captures what each platform offered and where things stand today. Sellers evaluating their options can use this as a starting point before reviewing the full breakdown in later sections.
Quick comparison table: 2021 snapshot
| Feature | Offerpad (still active) | Zillow Offers (closed Nov 2021) |
|---|---|---|
| Current status | Active in 23+ markets | Shut down November 2, 2021 |
| Service fee | 6 to 10% of sale price | 1.5 to 7.9% (historical) |
| Offer timeline | 24 hours | 48 business hours |
| Typical offer vs. FMV | 70 to 80% of fair market value | Similar range |
| Close timeline | 8 to 90 days (seller’s choice) | Fixed window |
| Free local move | Yes, within 50 miles | No |
| 3-day stay after closing | Yes | No |
| Zillow’s current option | None | Opendoor (cash offer partner) |
Based on Offerpad disclosures and historical Zillow Offers program data. Verify current fees before transacting.
Which company is still active in 2026?
Offerpad is the only active iBuyer between these two. Zillow Offers closed permanently in November 2021 and has not reopened. Offerpad continues buying homes in 23+ markets, primarily across Sun Belt states.
If you want a cash offer through Zillow’s platform today, Zillow connects you to Opendoor. That makes Opendoor the relevant live alternative to Offerpad in 2026, not Zillow Offers.
What happened to Zillow Offers?
Zillow Offers was one of the most prominent iBuyer programs in the country at its peak, reaching 25 markets before a series of mispriced purchases brought the entire operation down in late 2021.
Why Zillow shut down its iBuyer program
Zillow announced the permanent closure of Zillow Offers on November 2, 2021. Per Zillow’s 2021 iBuyer exit reported by CNBC, the company projected more than $500 million in losses from homes it had purchased at prices it could not recover through resale. Alongside the shutdown, Zillow cut approximately 25% of its workforce.
The problem was structural. Zillow’s pricing algorithm could not reliably forecast short-term home values at the volume the business required. When the market shifted faster than the model predicted, Zillow was left holding overpriced inventory it could not sell profitably. The company chose a full exit over restructuring.
Sellers still searching for answers on what happened to Zillow Offers can treat this as definitive: the program is gone, and Zillow has confirmed it does not plan to return to direct home buying.
What Zillow offers home sellers today
As of 2026, Zillow no longer buys homes itself; sellers who request a cash offer on Zillow.com are connected to Opendoor. When you click the cash offer option in Zillow’s interface, the request routes to Opendoor’s system, which returns an Opendoor offer. Zillow earns a referral fee from this arrangement.
For practical purposes, sellers now choose between going to Offerpad directly, going to Opendoor directly, or requesting an Opendoor offer through Zillow’s platform. The last two paths converge on the same offer.
How does Offerpad work?
Offerpad follows a four-step process from offer request to closing, with the full timeline typically running 8 to 90 days depending on the closing date the seller chooses. Unlike a traditional listing, there are no showings, no staging requirements, and no waiting on buyer financing.
Step 1: Submit your property details
You enter your home’s address and basic condition information on Offerpad’s website. The process takes roughly 10 minutes with no credit pull required. Offerpad’s algorithm uses the submitted details alongside local comparable sales to generate a preliminary offer. Confirm your metro is eligible by checking Offerpad’s market coverage before submitting, as offerpad availability varies by location and the company has contracted its footprint in the past.
For sellers new to this model, the how iBuying works for home sellers guide explains the full mechanics behind instant offer platforms before you commit to requesting a quote.
Step 2: Receive your offer in 24 hours
Offerpad delivers a written cash offer within 24 hours of submission. This is faster than the historical Zillow Offers timeline of 48 business hours and comparable to Opendoor. The offer is conditional at this stage and can be revised after the home inspection.
Step 3: Home inspection and revised offer
After you accept the preliminary offer, Offerpad schedules a home inspection. The inspection generates a list of repair deductions that Offerpad subtracts from the original offer amount. These deductions are not disclosed before the inspection, so the final payout can come in lower than the number you initially agreed to. You can walk away at this stage, but you have already invested time in the process.
Step 4: Choose your closing date
You select a closing date within Offerpad’s 8-to-90-day window. This range is broader than most iBuyers offer and is one of Offerpad’s stronger competitive advantages. The package also includes a free local move within 50 miles and a 3-day extended stay in the home after closing.
Offerpad fees: what sellers actually pay
iBuyer fees are the most important number to understand before requesting a quote. Offerpad’s total cost structure has three components: the service fee, closing costs, and post-inspection repair deductions.
Service fee: 6 to 10% of the sale price
The offerpad service fee runs from 6% to 10% of the sale price. This fee was formerly a flat 5% but shifted to a variable structure. The exact percentage depends on your market, home condition, and current local demand. Per the CFPB closing cost guide, seller-side closing costs in a traditional transaction run roughly 1% to 3% of the sale price. Offerpad adds another 1% to 3% in closing costs on top of its service fee, pushing total fees to roughly 7% to 13% before repair deductions are applied.
Repair deductions after inspection
Repair deductions are calculated separately from the service fee and are not disclosed upfront. Offerpad’s inspector identifies needed repairs, and Offerpad deducts estimated costs from your final payout. The range varies significantly by property: a well-maintained home may see minimal deductions, while a property with deferred maintenance can see tens of thousands of dollars removed. You can reject the revised offer at this point, but you cannot negotiate individual repair items out of the deduction the way you could by obtaining independent contractor estimates in a traditional sale.
How Offerpad fees compare to a traditional sale
The table below compares the real cost of an as-is home sale with Offerpad versus a traditional agent-assisted sale, using a $431,000 home as the reference point.
| Cost item | Traditional agent ($431K home) | Offerpad ($431K home) |
|---|---|---|
| Commission / service fee | approx. $24,000 (5.5%) | $25,860 to $43,100 (6 to 10%) |
| Closing costs | approx. $2,000 to $4,000 | approx. $4,310 to $12,930 (1 to 3%) |
| Repair / prep costs | Variable, seller-managed | Deducted from final offer |
| Staging / showings | Variable | None |
| Estimated total cost | approx. $26,000 to $44,000 | approx. $30,000 to $56,000+ |
Based on HAR.com research and Offerpad fee disclosures. Verify current figures before transacting.
According to NAR agent commission data, traditional commissions typically fall between 5% and 6% of the sale price depending on market and negotiation. Offerpad’s service fee starts at 6%, where the traditional range ends, and that is before repair deductions are applied. Net proceeds from an Offerpad sale tend to be lower than a traditional listing on the same home under most market conditions.
Does Offerpad give good offers or lowball you?
Yes, Offerpad’s cash offers come in below full market value. The question is how far below, and whether the speed and convenience offset the gap for your specific situation.
What independent data shows about offers
Offerpad reviews 2026 consistently reflect below-market outcomes when examined against real transaction data. According to an iBuyer transaction analysis published by RealEstateWitch.com covering 530+ actual deals, Offerpad paid sellers an average of $29,346 less per home than its eventual resale price. Offerpad then resold those homes for roughly 10% more than it paid. This figure is drawn from 530+ transactions, not modeled projections.
| Data point | Figure | Basis |
|---|---|---|
| Typical Offerpad offer vs. fair market value | 70 to 80% of FMV | Independent analyses, multiple sources |
| Average below resale price | $29,346 per home | Analysis of 530+ iBuyer transactions |
| Offerpad resell premium over purchase | approx. 10% | Same 530+ deal analysis |
| Service fee (deducted from offer) | 6 to 10% | Offerpad fee disclosures |
Source: RealEstateWitch.com analysis of 530+ iBuyer transactions. Verify figures at time of use.
Why iBuyer offers come in below market value
iBuyers price offers to account for carrying costs, renovation expenses, and resale risk. When Offerpad buys your home, it needs to recover its offerpad service fee, cover any repairs, pay holding costs while the property sits on the market, and turn a profit on resale. The gap between what it pays you and what it eventually sells for covers all of those costs. The discount is structural to the business model, not a negotiating position you can talk your way out of.
For a deeper look at how iBuyer pricing algorithms work, the how iBuyers calculate their offers breakdown explains the data-driven mechanics behind below-market offers in detail.
How to decide if Offerpad’s offer is fair
The comparison that matters is net proceeds, not the headline offer number. A seller who receives $350,000 from Offerpad on a $400,000 home is not automatically worse off than a seller who lists at $400,000 if the listing seller spends $15,000 on repairs, pays $22,000 in commissions, waits 60 days, and carries two months of mortgage payments in the meantime.
Run both scenarios with your actual numbers before deciding. Add up what a traditional sale would realistically cost: agent commission, repairs, staging, carrying costs, and the risk of a deal falling through after inspection. Compare that to Offerpad’s net proceeds after the iBuyer fees and repair deductions are applied.
Offerpad’s Trustpilot reviews show a 4.0 out of 5 rating from 174 reviews. Reviews.io places Offerpad at 2.1 out of 5. The gap reflects a pattern common among iBuyers: sellers who had smooth closings rarely post public reviews, while sellers who encountered larger-than-expected repair deductions after home inspection are more likely to share the experience.
Offerpad vs Opendoor in 2026
Because Zillow Offers no longer operates, the most relevant current comparison for sellers evaluating Offerpad is Opendoor, the company Zillow now sends its cash-offer requests to. If you are choosing between active iBuyers, offerpad vs opendoor is the comparison that actually matters.
Fees compared: Offerpad vs Opendoor
The fee gap between these two platforms is narrower than most sellers expect. According to the Forbes profile of Opendoor fees, Opendoor charges an average service fee of approximately 7%, placing it near the midpoint of Offerpad’s 6-to-10% range. In practice, either company can come in cheaper depending on your market and home condition.
| Feature | Offerpad | Opendoor |
|---|---|---|
| Service fee | 6 to 10% | approx. 5 to 8% (avg. 7% per Forbes) |
| Offer timeline | 24 hours | 24 hours |
| Close timeline | 8 to 90 days | Flexible (similar range) |
| Free local move | Yes, within 50 miles | No |
| Extended stay after closing | Yes, 3 days | Not standard |
| Markets served (2026) | 23+ | 50+ |
| Typical offer vs. resale price | approx. 10% below | approx. 9% below |
| Zillow partnership | No | Yes (Zillow’s cash offer partner) |
Based on Forbes, tkrealtytx.com, and published iBuyer fee data. Verify current fees before transacting.
Customer reviews and ratings
Offerpad reviews 2026 from third-party platforms show a wider range than the company’s own satisfaction figures suggest. The table below aggregates scores across available review sources.
| Review source | Offerpad rating | Review count |
|---|---|---|
| Offerpad (self-reported) | 93% satisfaction | Internal metric |
| Trustpilot | 4.0 / 5 | 174 reviews |
| Reviews.io | 2.1 / 5 | Mixed |
| BBB | Verify current rating before publishing | See BBB profile link in FAQ |
Pull live ratings before publishing. Figures shift as new reviews are added.
Availability: where each operates
Offerpad operates in 23+ markets concentrated in Sun Belt states including Arizona, Texas, Florida, Georgia, Nevada, and Colorado. Opendoor operates in 50+ markets, covering a significantly broader geographic footprint. If you are outside the Sun Belt, Opendoor is more likely to serve your area.
If both companies cover your metro and you want to sell house fast without repairs or showings, requesting quotes from both at the same time gives you a practical benchmark before committing to either.
Perks and extra services
Offerpad includes a free local move within 50 miles and a 3-day extended stay after closing as standard features. Opendoor does not offer either perk as standard. For sellers coordinating a move or managing a tight relocation schedule, these extras add real practical value beyond the offer number alone.
For a deeper look at how Opendoor compares to another major cash offer platform, the HomeLight vs Opendoor comparison covers that head-to-head in detail.
Who should use Offerpad?
The right seller for Offerpad is specific. Understanding who benefits and who loses out helps you make the call faster.
Best-fit sellers for Offerpad
Offerpad works best for sellers who prioritize a guaranteed close date over maximizing sale proceeds. Specific situations where the model makes sense:
- You need to close within 30 days due to a job relocation, a new home purchase, or a financial deadline.
- Your home needs significant repairs and you prefer not to manage a renovation before listing.
- You are selling an inherited property and want a clean, fast transaction without extended agent negotiations.
- You are relocating for work and want to lock in your sale date before your move date.
- You own a rental property with tenants in place and want to avoid coordinating showings.
Offerpad is active across several primary Sun Belt metros. For local market context in one of its largest coverage areas, see iBuyers operating in Arizona for city-by-city detail on offerpad availability and competitor activity.
When to skip Offerpad and try alternatives
Offerpad is a poor fit if maximizing your net proceeds is the primary goal. Sellers willing to list traditionally typically net more. A seller with a well-maintained home in a competitive market who has 45 to 90 days to list will almost always clear more through an agent than through any iBuyer.
The math is direct: iBuyer fees of 6 to 10% combined with a 70-to-80% fair market value offer means Offerpad captures a meaningful share of your equity in exchange for speed and certainty. If you do not need that speed, you are paying a premium for something you are not using.
For sellers evaluating iBuyer alternatives, requesting multiple competing cash offers simultaneously gives you more leverage than going to a single company. Comparing offers before you accept is the most reliable way to know whether any individual offer is competitive in your market.
If you are researching Offerpad because you want a fast, hassle-free home sale, you do not have to limit yourself to one company’s number. iBuyer.com connects you with multiple vetted cash buyers in your market so you can compare offers side by side before accepting. There is no obligation to accept any offer, no agent commission required, and no repairs needed before you receive a figure. Sellers typically close in 7 to 30 days on their own schedule. Submit your address to see competing cash offers in minutes.
Don't Settle for One iBuyer Offer iBuyer.com connects sellers to multiple cash buyers in their local market.
No MLS listing, no commissions, no obligation to accept.
Frequently asked questions
Zillow shut down its Zillow Offers iBuying program on November 2, 2021, citing more than $500 million in projected losses from mispriced purchases. Zillow’s pricing algorithm proved too unpredictable to sustain home buying at scale, and the company cut 25% of its workforce alongside the closure. As of 2026, sellers requesting a cash offer on Zillow.com are routed to Opendoor instead.
Offerpad’s offers typically land at 70 to 80% of fair market value, below what most sellers net in a traditional MLS sale. Independent analysis of 530+ iBuyer transactions found that Offerpad paid an average of $29,346 less per home than its eventual resale price. The gap is partially offset by avoiding agent commissions, repairs, and staging costs.
Yes, Offerpad typically offers below market value, with independent analysis of 530+ deals showing sellers received an average of $29,346 less than the eventual resale price. Offerpad resold homes for roughly 10% more than it paid, and its 6 to 10% service fee plus repair deductions further reduce what sellers actually take home. The below-market outcome is structural to the iBuyer model, not an anomaly.
The offerpad service fee is 6 to 10% of the sale price, plus closing costs of 1 to 3% and repair deductions identified after the home inspection. The fee was formerly a flat 5% and has since shifted to a variable structure. Repair deductions are not disclosed before the inspection, which can catch sellers off guard after they have accepted the initial offer.
Offerpad can close in as few as 8 days, with a flexible window extending to 90 days based on the seller’s chosen timeline. This range is broader than most iBuyers offer and is one of Offerpad’s strongest selling points compared to alternatives. Sellers also receive a free local move within 50 miles and a 3-day extended stay after closing.
Yes, Offerpad is a legitimate iBuyer company that has purchased homes in 23+ U.S. markets since its founding in 2015. Offerpad reports a 93% customer satisfaction rate from internal reviews and holds an accreditation profile on the Better Business Bureau; verify its current standing at the Offerpad BBB profile before making a decision. Third-party ratings are more mixed: Trustpilot shows 4.0 out of 5 from 174 reviews, while Reviews.io rates it at 2.1 out of 5.
Offerpad and Opendoor charge similar service fees, but Offerpad’s close window runs 8 to 90 days and includes a free local move as a standard perk that Opendoor does not offer. Opendoor operates in 50+ markets versus Offerpad’s 23+, giving Opendoor wider reach for sellers outside the Sun Belt. As of 2026, Opendoor is Zillow’s official cash-offer partner, so sellers requesting an offer through Zillow’s platform receive an Opendoor offer.
Offerpad reviews 2026 data shows 4.0 out of 5 on Trustpilot from 174 reviews, with Reviews.io placing it at 2.1 out of 5. The gap between Offerpad’s self-reported 93% satisfaction rate and its third-party scores reflects a common iBuyer pattern: sellers with smooth closings rarely post reviews, while those surprised by post-inspection repair deductions are more likely to share the experience publicly.
As of 2026, Offerpad operates in 23+ markets across Arizona, Texas, Florida, Georgia, Nevada, Colorado, and other Sun Belt states. Its footprint is significantly smaller than Opendoor’s 50+ markets. Sellers should confirm offerpad availability for their specific metro directly on Offerpad’s website before investing time in the offer process.
You can counter Offerpad’s initial offer, but most sellers report only modest adjustments if any, and the overall range of negotiation is limited. Offerpad’s pricing is algorithm-driven, which makes price negotiation less effective than in a traditional agent sale. Sellers have more success negotiating close date flexibility or challenging specific repair deductions with independent contractor estimates.
Offerpad focuses on homes built after 1960, typically valued between $100,000 and $600,000, in good to average condition. Offerpad does not purchase mobile homes, properties with significant foundation damage, or homes with active litigation. Properties with solar panel leases, unpermitted additions, or septic system issues may be declined or subject to larger repair deductions after inspection.
An iBuyer offer trades a lower sale price for speed and certainty; it is worth it if you prioritize convenience over maximum net proceeds. Sellers on tight timelines or with properties that need significant work often find the trade-off justified when they factor in avoided repairs, staging, and commissions. Sellers with well-maintained homes in competitive markets who have time to list typically net more through a traditional sale.
The 3-3-3 rule is a buyer-side financial readiness framework unrelated to iBuyer transactions or home-selling decisions. It advises buyers to maintain three months of emergency savings, three months of mortgage payment reserves, and to compare at least three properties before making an offer. It has no application to selling a home through Offerpad or any other iBuyer.
Offerpad is an institutional iBuyer pricing homes with algorithms, while a traditional cash buyer is an individual investor setting terms case by case. Institutional iBuyers like Offerpad offer published fee structures and defined timelines that individual cash buyers, who may offer 50 to 60% of market value, typically do not. Individual cash buyers may have more flexibility on terms but also less reliability on follow-through.
Reilly Dzurick is a licensed real estate agent with over six years of experience and a member of the iBuyer.com Market Insights Team, covering national trends in home selling and the evolving iBuyer landscape. Her firsthand experience working with buyers and sellers gives her a practical perspective on how these platforms impact real homeowners. She holds a degree in Public Relations, Advertising, and Applied Communication.
