iBuyer companies like Offerpad buy nearly 1% of the US market’s homes annually. And this market share keeps going up.
Why? iBuyers and companies like them are making it easier than ever to buy and sell a home. Yet, with so many alternatives to Offerpad out there, it can be difficult to choose the right company.
Today, we want to help you find the right iBuyer for your needs. Keep reading this article to learn more about the top companies similar to Offerpad.
Offerpad is the second-largest iBuyer in the US. It operates in more than 50 different markets across the nation. And Offerpad ratings are among the highest of any iBuyer to date.
Offerpad features a streamlined home buying program with a 6%–10% service fee. In exchange, you get an all-cash offer within 24 hours and guaranteed closing within 90 days.
Check out Offerpad’s top three iBuyer competitors below.
Opendoor was one of the earliest companies to enter the iBuyer space. Eric Wu founded this company in 2014, only one year before Offerpad opened its doors. It is one of the closest competitors to Offerpad.
Here’s how it works. You submit your home’s information to Opendoor, and they will either accept or decline to make an offer. If Opendoor accepts, they will make an in-person visit to your home to verify its condition.
Opendoor purchases homes that need renovations. However, you will receive a lower offer than if it is in move-in condition. Like Offerpad, Opendoor provides cash offers and quick closing times if they accept your home.
So, what is the differentiating factor between these two companies? Offerpad is available in more cities. Meanwhile, Opendoor only buys homes in the following highly lucrative real estate markets.
Offerpad and Opendoor have very similar fees. You will pay 5% for the company to list your home. Still, because Offerpad is an iBuyer, these fees will be much less than the commission you would pay a realtor to list your home.
RealSure is a program developed in partnership between Realogy and Home Partners of America. Realogy is the parent company of various real estate brokerages, including Century 21 and Coldwell Banker.
RealSure is not technically an iBuyer. It does not buy homes.
Instead, it is a program that provides real estate CRM leads to its parent company Realogy. And Realogy is the company that actually makes the cash offer.
Here’s how RealSure works. Realogy will provide a cash offer on your home. If you choose to accept, Realogy will inspect your home and deduct any costs for repairs or renovations.
If you do not accept the offer, this is when the RealSure program kicks in. You sign a listing agreement with one of the realtors affiliated with Realogy. You will also have to pay an upfront service fee.
Then, the agent will list your home on the market. And that agent’s goal is to sell your home for a higher amount than the guaranteed cash offer from Realogy. If your home does not get a higher offer in 45 days, you can leave the program at no extra cost.
As you can imagine, working with realtors means you must pay the agent’s commission fee as well as a service fee. Commission plus service fees range from 1% to 7% when you sell your home through the RealSure program.
The downsides to this service include that it is only available in a few dozen markets. If you do not like the offer Realogy makes (and it is usually lower than competitors), you also have to pay high fees.
Yes, RealSure can sometimes get sellers a more competitive offer than other iBuyers. But the fees can quickly eat into that offer. And that is why it may be better to go with Offerpad or another alternative.
HomeVestors is the parent company of We Buy Ugly Houses. It has been making cash offers on homes across the country since 1996.
The company operates through a nationwide network of franchise locations. As you can imagine, it is difficult to rate HomeVestors as a whole because each franchise location differs in quality.
The good news about HomeVestors is that it buys homes in need of repair. However, they will deduct these costs from their offer. But on the plus side, HomeVestors will cover all closing costs for sellers.
Here’s how HomeVestors works. You can input your address on the HomeVestors website. The company operates in 45 US states via its more than 800 franchise locations, making this company one of the most accessible of Offerpad’s competitors.
A representative from HomeVestors in your area will then schedule a visit to your home. Then, the representative will make you a cash offer based on the condition of your home.
If you accept the offer, HomeVestors promises to close in at least three weeks. This timeline is longer than other iBuyer’s closing windows. For example, most iBuyers promise to close in less than two weeks.
But the most significant downside to this company is its offers. HomeVestors’ offers can be as much as 55% less than what you would receive on the open market.
Unlike companies like Offerpad, though, HomeVestors does not market its services to everyone. The company states that its services are best for sellers who need to sell their homes as-is in a limited amount of time.
But if you have the time to spare, we recommend choosing an alternative to HomeVestors. You will get a higher offer for your home. And you may even be able to close even faster than if you were to go through HomeVestors.
iBuyers are not the only companies that help people sell their homes and buy new ones. All-cash buyers, home trading programs, and other business models offer alternatives to iBuying.
Below, we are talking about the best alternatives to Offerpad.
Orchard is not an iBuyer. Instead, it markets itself as a home trade-in company. You can sell your current home and buy a new one through Orchard’s trade-in program.
Here’s how the program works. You submit your home’s information to Orchard’s trade-in service, Move First. The company will then help you identify your home’s equity.
Before you even sell your home, Orchard will help you buy a new one. The only contingency is that the new home must be worth 90% or less of the value of your current home.
Once you select a new home, Orchard will give you the cash to fund the purchase. According to a recent report, home sellers are 4 times more likely to accept an all-cash offer, especially when there is a bidding war.
And all of this happens before you even sell your home. You can move into your new home as soon as you close. Then, Orchard will take care of the renovations and list your old one.
If your home does not sell in 120 days, Orchard will purchase it. Of course, their cash offer will be lower than what you might get on the open market. And you must pay a 6% fee for the service.
By now, you may be thinking: all this sounds too good to be true. There has to be a catch. And you would be right because Orchard only operates in a handful of markets and is very exclusive about the homes it makes offers on.
Orchard only operates in Austin, Dallas-Fort Worth, Houston, and San Antonio, Texas; Denver, Colorado; Portland, Oregon; Seattle, Washington; and Atlanta, Georgia.
And unlike its competitors, Orchard only accepts newer homes. Your home must have been built after 1972 for Orchard to make an offer.
Knock.com is a mortgage company with ties to the well-known real estate aggregator Trulia. Knock also offers a home buying and selling service.
Knock is similar to Orchard in that it is not technically an iBuyer. It does not make cash offers on homes. Instead, this company offers a trade-in service via its Home Swap program, which is available in only 15 US states.
Here’s how Knock Home Swap works. Like Orchard, Knock will fund your purchase of a new home via the equity in your current one.
You can use their funding to put a downpayment on your new home, even if your old house is still on the market. Alternatively, you can use this funding to cover the mortgage on your old house until it sells or any repairs that could improve your old home’s market value.
The catch is that you must get a mortgage through Knock. Then, you have to pay a 1.25% service fee for the use of the program, plus $1,450 for mortgage underwriting.
Knock itself will not make an offer on your home. Instead, it has partner agents you can list with. Unlike many of its competitors, Knock also allows you to pick your own agent if you do not want to list with them.
Something else to note is that Knock has a significant interest in the sale of your old home. They list your home on the open market. And this allows sellers to get the most competitive offer.
Knock is the program to go with if you have an older home. Unlike Orchard, Knock will accept homes built as far back as 1930!
But what happens if your home does not sell? Knock promises to purchase your old home if it does not sell within six months.
6. Ribbon Home
Like Orchard and Knock, Ribbon Home is not an iBuyer. Instead, it calls its program the Power Buyer Model. And the Power Buyer Model’s goal is to help people purchase new homes faster.
Here’s how Ribbon works. Ribbon will make an all-cash offer on your new home via its RibbonCash program. While your house is on the open market, you pay rental payments to Ribbon to live in your new home.
Once your old home sells, you can stop renting your new home. Using the money you earn from the sale of your old home, you then purchase your new home from Ribbon.
Unlike Orchard, Ribbon is not a lender. It offers its services via partner mortgage providers to help individuals and families buy a new home. You must have a mortgage pre-approval letter to qualify for Ribbon’s program.
Find the best companies like Offerpad with iBuyer.com
Companies like Offerpad can help you sell your home or purchase a new one faster than ever before. But Offerpad is not for everyone. Consider its competitors and alternatives before settling on the right model for you.
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