Offerpad was founded in 2015 by Brian Bair and Jerry Coleman and its largest investors include Taylor Morrison and Blackrock. Offerpads’ services are not available nationwide, however they do service the state of Ohio.
In an effort to comply with regulations of the New York Stock Exchange, Offerpad (OPAD) has executed a 1 for 15 reverse stock split as was just reported on Inman. Once a darling of wall street per se’ this pioneering iBuyer traded as high as $204.45 on September 17, 2021 and as low as 37 cents over the past year. Today, with the reversal complete it was trading at $8.20 per share.
Offerpad has an aggressive marketing strategy and offers a competitive 3% commission to woo in Realtor business, however a Seller must do their own due diligence when considering selling their home via this service. Offerpad uses algorithms to determine the price they will offer, which is often lower than what a Seller is likely to receive on the open market. While Offerpad offers For Sale By Owner home Sellers (FSBO’s) the opportunity to Sell without and showings, a quick closing and a free local move, their high fees of up to 10% of the sales price (commissions, concessions fees and often expensive repairs) will take a huge chunk out of Seller the proceeds. If a Seller wants to backout for any reason other than the Seller and Offerpad could not agree to terms on a request to remedy, the Seller is required to pay Offerpad one percent of the agreed upon sales price.
Business Insider had written an article titled ‘The problem with home-flipping giants’ in which they compared the marketing style of companies such as Offerpad to ticket scalpers in which the product is purchased at a greatly reduced price, glossed over and marketed at a substantially higher price to ensure the desired profit margin.
Selling your home on your own without the assistance of a full service Real Estate Brokerage will require both commitment and due diligence for which you may be rewarded by saving thousands of dollars in commissions. Maximizing marketing exposure is key. I have been in this industry for decades, SOLD well over a BILLION DOLLARS in Real Estate & Saved Sellers Millions of Dollars in Real Estate commissions. Please reach out to us to learn how the For Sale By Owner Flat Fee MLS Listing Options at Ohio Broker Direct will enhance your marketing exposure to ensure a more expeditious sale, yielding a higher price with better terms that suit your specific needs. Contact us directly, visit our blog page or sign up for our newsletter to receive the latest information to ensure you have the knowledge to maximize your profit!
Joan Elflein, Broker / Ohio Broker Direct Ohio Broker Direct & its Brokers or Associates assumes no responsibility or liability for any errors or omissions in this blog, we advise all participants engaged in the buying or selling of Real Estate to enlist the services of a Real Estate Attorney