How Does Offerpad offers work in MN?

Usually Most of the time, real estate transactions are a long, drawn-out process, with the average time to completion between 30 and 45 days. For sellers who need to sell their house quickly, however, an online buyer like Offerpad can be perfect.

 Offerpad is a real estate investment company that buys and sells homes more quickly than traditional real estate companies do.

After sellers provide some details about their home, Offerpad uses a combination of a highly advanced algorithm and its team of in-house real estate experts to provide an offer, often within 24 hours. In some markets, houses will close in as little as ten days!

 Of course, Offerpad’s main selling point is its speed. Compared to traditional real estate companies, Offerpad charges higher fees (between 6 and 10 percent) and usually offers below the open market value.

 So is listing on Offerpad worth it?

The Offerpad Process

First, let’s take a look at how the process of selling a home using Offerpad works.

Requesting an Offer

Sellers usually receive an offer within 24 hours by submitting a few details, including its condition, structure, and size. Other things that can affect the offer they receive include:

• 1. Date of construction
• 2. Date of any remodels
• 3. Square footage
• 4. Landscaping
• 5. Appliances, countertops, and flooring

 Offerpad doesn’t require homeowners to submit pictures with their offer request, but providing them can result in a faster, more accurate offer.

Receiving an Offer

Offerpad uses a combination of algorithms and real-life real estate experts to come to an offer. They’ll consider the state of the market, the home’s condition, any unique amenities it may have, and recent sale prices in the area.

 Once the algorithm comes to a price, it’s double-checked by Offerpad’s experts and adjusted if necessary.

 It usually takes about 24 hours to receive the offer, but it may be shorter or longer depending on various factors.

Making a Decision

 Unlike traditional real estate brokers, Offerpad’s offer is final. There’s no option to counteroffer. Sellers have four days to come to a decision and decide on a closing date.

 If they decide to accept, they sign the contract and any other paperwork online.

This is also when sellers opt into Offerpad’s complimentary services. For example, Offerpad stands out from similar companies for its free local move service. 

Within 50 miles of the old home, Offerpad partners with local moving companies to provide the move for free.

 Sellers can also opt into Offerpad’s extended stay option, which allows them to stay in their home for up to three days after Offerpad buys it.

Inspection and Repairs

 Within 15 days of signing the initial purchase agreement, Offerpad will send an agent to inspect the home. They’ll check to make sure the house is in the condition reported and to see if any repairs are needed. 

 If Offerpad finds that the house needs repairs before closing, sellers have a few options:

• 1. Offerpad can credit the repairs by modifying the purchase contract. They will lower the price of the house to compensate for the cost of the repairs.
• 2. Sellers can also hire a qualified, independent contractor to conduct the repairs. Offerpad will require documentation, including before and after photos, receipts, and the contractor’s license information.

Closing the Sale

 Once all repairs have been completed and the final contract has been signed, you’ll go to the title company’s office and transfer the title. 

 Offerpad takes between 6% and 10% as commission on the final sale price, so keep that in mind when considering the market value of your home.

Offerpad Eligibility

 Unfortunately, Offerpad doesn’t offer on all types of homes and only operates in 15 metropolitan markets. 

 Offerpad operates in the following markets:

• Birmingham, AL
• Phoenix, AZ
• Tucson, AZ
• Jacksonville, FL
• Orlando, FL
• Tampa, FL
• Atlanta, GA
• Las Vegas, NV
• Charlotte, NC
• Raleigh, NC
• Charlotte, SC (and neighboring areas)
• Austin, TX
• Dallas-Fort Worth, TX
• Houston, TX
• San Antonio, TX

 In addition to these limitations, Offerpad won’t purchase some types of homes. To qualify for Offerpad, a house must be:

• A single family residential home (including condominiums and townhomes)
• Built after 1960
• Valued no higher than $500,000-$600,000
• On a lot size no greater than one acre

 If the Offerpad agent determines that the house has significant foundation, structural, or other condition issues, or if the seller refuses to conduct repairs Offerpad deems necessary, they will not purchase it.

Offerpad Costs and Fees

 The biggest advantage of Offerpad is its quick turnaround time. This advantage, however, comes at a cost of a higher service fee than most brokers.

 Offerpad’s service fee is between 6%-10%. On average, most sellers receive a 7% service fee.  This isn’t a lower fee than a real estate agent charges. Before you go this route, consider contacting a local real estate agent.

 The service fee a seller receives is based on a large number of factors. From the number of buyers in the market to the condition of the home, the more time and money Offerpad will have to invest in your home, the higher the service fee will be.

 It’s also important to note that Offerpad will not pay closing costs, so the final sum you receive will be 1%-3% lower than the purchase price.

 It’s also important to note that Offerpad will not pay closing costs, so the final sum you receive will be 1%-3% lower than the purchase price.

Offerpad Pros and Cons

Pros

• Flexible closing dates
• Free local moves
• Fast closing as short as 10 days
• Easy to request an offer and quick turnaround
• No home prep needed — no staging, showings, or open houses
• Extended stay option

Cons

• Higher service fees
• Offers are usually below market value
• Sellers can’t negotiate offer price
• Only available in select cities
• Not all homes are eligible

Conclusion

 Just like any real estate broker, there are advantages and disadvantages to working with Offerpad. If a seller’s top priority is closing quickly, and they’re willing to accept a price lower than market value, Offerpad is a convenient way to sell in just a few weeks.

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