Opendoor vs Offerpad
They work the same way (buys homes directly (ibuyer)), so the better one is whichever makes the higher offer for your home after fees. Request both: it costs nothing, and the offers can differ by thousands of dollars.
| Opendoor | Offerpad | |
|---|---|---|
| Type | Buys homes directly (iBuyer) | Buys homes directly (iBuyer) |
| Founded | 2014 | 2015 |
| Headquarters | Tempe, Arizona | 433 S Farmer Ave, Suite 500, Tempe, Arizona 85281 |
| Where it buys | Nationwide | 10 of the metros we track |
| Fees (per the company) | The current company site says the offer includes a program fee for selling without staging or showings, a condition adjustment, and title and escrow costs of 1–3% paid to third parties; it does not publish a universal current percentage for the program fee and says the exact charges appear in the offer. Opendoor's 2024 Form 10-K separately described its service fee as 5%. | For a direct cash sale, Offerpad says it charges a 5% service fee plus approximately 1% in closing costs. It says there are no commissions, concessions, or out-of-pocket repair costs; needed repairs are handled through a credit adjustment. |
| Ratings | Trustpilot 4★ (877) · BBB A+ | BBB A+ |
| Best for | Newer homes in good condition, when you want an offer closer to market value and can accept a service fee | Newer homes in good condition, when you want an offer closer to market value and can accept a service fee |
What sellers report about Opendoor
Yes, Opendoor is a real company: it is publicly traded on Nasdaq (OPEN) and buys and closes on homes directly. The main caveat is price. In 2022 the FTC alleged that most sellers who sold to Opendoor ended up with thousands of dollars less than a traditional sale would have netted them (Opendoor settled for $62 million without admitting wrongdoing), and sellers still report offers that drop after the home assessment.
- Net proceeds below a traditional sale (FTC settlement). In 2022 the FTC alleged that Opendoor's marketing misled sellers about its offers and costs, and said most people who sold to it made thousands of dollars less than they would have on the open market. Opendoor agreed to pay $62 million without admitting wrongdoing, and the FTC sent refunds to sellers in 2024. Source
- Offer drops after the assessment. Low-rated Trustpilot reviews describe an attractive estimated offer that fell sharply once photos or the assessment were reviewed. A 2026 BBB complaint describes signing a repair addendum after the inspection without clear confirmation of the final price. Source
- Total fees higher than expected. Negative Trustpilot reviewers say that once the service fee, repair credits and closing costs were added up, the amount they would actually receive was much lower than the headline offer. Source
- Hard to reach during the transaction. BBB complainants describe trouble getting answers by phone, email or text while under contract, and difficulty escalating past front-line representatives. Opendoor's public responses typically point sellers back to their assigned support specialist. Source
- Fast, simple sale with no showings. Five-star Trustpilot reviewers, mostly sellers, praise a quick, remote process with no open houses and helpful staff. Several say outright that they accepted less than top dollar in exchange for the convenience. Source
Checked September 2026.
Full Opendoor reviewWhat sellers report about Offerpad
Yes, Offerpad is a legitimate, publicly traded iBuyer (Nasdaq: OPAD) that buys and closes on homes itself. The most common seller complaint is that the preliminary offer drops, sometimes a lot, after the inspection. Its Trustpilot reviews are mixed.
- Preliminary offer falls after inspection. Several Trustpilot reviewers say an initial offer they were happy with dropped by tens of thousands of dollars once the inspection or final review came in. Some say they had already turned down other options by then. Source
- Confusion about the service fee. One seller told the BBB they believed a percentage deducted at closing was a realtor commission. Offerpad replied that its service fee is disclosed in the purchase agreement and is not an agent payment. Trustpilot reviewers also cite the fee combined with repair deductions. Source
- Communication gaps. Negative reviewers describe calls not being returned after the first contact, and being passed between different staff members during the deal. Source
- Loose ends after closing. One BBB complaint describes utility bills and a collection notice arriving after the sale because accounts were not transferred. Offerpad acknowledged the confusion and reimbursed the seller. Source
- Quick close and flexible dates. Positive reviewers describe an easy process, closings on the promised timeline (one cites 15 days), and flexibility to move the closing date or stay a little longer. Source
Checked September 2026.
Full Offerpad reviewBefore you accept either offer
- Compare what you'd net after service fees, repair credits and closing costs, not the headline offer.
- Ask how the price can change after the inspection or assessment. See the reduction call.
- Get a third offer from a well-rated local buyer. See the best cash home buyers.
Common questions
Is Opendoor or Offerpad better?
They work the same way (buys homes directly (ibuyer)), so the better one is whichever makes the higher offer for your home after fees. Request both: it costs nothing, and the offers can differ by thousands of dollars.
What's the difference between Opendoor and Offerpad?
Opendoor: Buys homes directly (iBuyer). Offerpad: Buys homes directly (iBuyer). Opendoor buys nationwide; Offerpad buys 10 of the metros we track.