Opendoor and Offerpad are the two best-known iBuyers: companies that use online valuation tools, make a cash offer on your home, and then resell it. They look similar from the outside, but the details that affect how much money you keep are different. This comparison walks through those details and ends with a worked example you can adapt to your own numbers.
Figures below come from published comparisons by HomeLight and Clever Real Estate (both sell their own seller services, so treat them as secondary sources). Fees, markets and policies change; confirm everything on each company’s website and in your written offer.
Opendoor vs Offerpad at a glance
| Opendoor | Offerpad | |
|---|---|---|
| Service fee | Reported around 5% of the offer price, shown in your dashboard | Reported around 5% of the offer price |
| Closing costs | Additional costs of roughly 1% reported | Roughly 1% reported |
| Repairs | A “condition adjustment” is deducted after the inspection; some repairs may be required | Offers a repayable home improvement advance; repairs and deductions can still apply |
| Offer timing | Usually within 1–2 days of your request; final offer after an in-person visit | Online quote within about a day |
| Closing window | Commonly 21–60 days, with fees possible if you delay past 30 | Commonly within 60 days |
| After closing | Late checkout option for a fee | Short extended stay at no extra charge reported |
| Listing alternative | Cash offer only | Can pair a cash offer with a listing option in some markets |
| Coverage | Select markets across most states | Cities and towns in a smaller number of states, concentrated in the West and Southeast |
The service fee is only the first cost
Both companies publicly describe a service fee of about 5%, and sellers cannot normally negotiate it. But the number that matters is what you receive at closing, which is the offer price minus three things:
- The service fee. Around 5% of the offer price.
- Closing costs. Title, escrow, transfer taxes and prorated property taxes, often around 1% of the price.
- Repair or condition adjustments. Deducted after an inspection. Clever reports that sellers it spoke with paid roughly 1% to 5% of the price here, sometimes more than $30,000.
Because the repair deduction is set after you have accepted the initial offer, it is the line most likely to surprise you. Both companies describe the first number as a starting point.
Worked example: a $400,000 home
The numbers below are illustrative, not quotes. They assume the iBuyer offers 95% of market value, charges a 5% fee and 1% closing costs, and deducts $8,000 after inspection. The traditional listing assumes a 5.5% total commission, 1.5% seller closing costs, $4,000 in repair credits and two months of carrying costs ($5,000).
| iBuyer offer | Traditional listing | |
|---|---|---|
| Sale / offer price | $380,000 | $400,000 |
| Service fee or commission | −$19,000 (5%) | −$22,000 (5.5%) |
| Closing costs | −$3,800 (1%) | −$6,000 (1.5%) |
| Repairs / credits | −$8,000 | −$4,000 |
| Carrying costs while selling | $0 | −$5,000 |
| Net to seller | $349,200 | $363,000 |
| Typical time | About 3–8 weeks | Often 2–4 months |
In this example the listing nets about $13,800 more, but takes longer and is less certain. If your home needs work you cannot fund, or you are on a deadline, the iBuyer’s certainty can be worth that gap. Change the inputs for your own home: a higher repair deduction or a lower offer widens the difference quickly.
Where they differ in practice
Repairs
Opendoor takes the cost of repairs out of your offer. Offerpad has described an advance for repairs, which you repay from the sale proceeds, so you can fix things before closing if you prefer to keep more of the price. Check whether that option exists in your market.
Flexibility
Offerpad has offered a few extras such as a listing option and moving help in some markets, while Opendoor has a larger footprint. Availability depends on where you live and may have changed since this was written.
Eligibility
Both companies focus on single-family homes and townhomes in good condition. Homes with structural issues, very old homes, manufactured homes and tenant-occupied properties are often excluded. If your home is in rough shape, a local investor is more likely to bid. See local cash buyers vs national brands.
Reputation
Customer reviews of both companies are mixed on independent sites. Common complaints include offers lowered after inspection and withdrawn offers. Read recent reviews from sellers in your area rather than the average score.
Which should you choose?
- Choose Opendoor if you are in one of its markets, your home is in good condition and you value a streamlined, predictable process.
- Choose Offerpad if it serves your area and you want the repair advance or listing option, or you want to compare two instant offers.
- Get both, and a third option. The two companies price homes differently, so requesting both offers costs you nothing. Add an agent’s opinion of value and a local investor’s bid, then compare net proceeds, not headline prices.
Not sure how an iBuyer compares with other routes? See our guide to the iBuyer vs investor vs agent decision and the cash offer vs traditional listing breakdown.