In this follow-up discussion to our previous video about Offerpad, we further analyzed the specific numbers that Offerpad provided for our example house within the Orlando real estate market. We compared these numbers -- the ones that a home seller would get from Offerpad -- with the numbers that a seller would get with a traditional REALTOR in Metro Orlando. To make sure that everything was even we did the analysis on David's own personal house which recently had an appraisal done on it.
The first and most glaring difference we notice in the numbers is the offer price. From Offerpad, they came in with an offer price of $437,000; in comparison, the appraiser provided a number of $475,000, which is over $30,000 higher. The commission was the same, yet Offerpad charged an additional "experience fee" which was 2.5% of the purchase price.
Furthermore, the average repairs must be factored in for both methods of selling your house. In a strong sellers' market in Orlando, when you are working with a good real estate agent, you would be able to negotiate any inspection repairs to zero. But according to reviews online, Offerpad typically comes back with a much higher number in which they are either asking the seller to make the repairs or for them to provide a credit. So while this number varies for each home, you can be certain that with a good Orlando REALTOR, your repair cost will in most cases be lower compared to Offerpad.
Offerpad does pay for title fees up to $2,000, and they also provide moving cost up to $ 2,500. Yet their quote can be confusing for clients; they instill the F.U.D. factor (fear, uncertainty, and doubt) to make their numbers look comparable to what you would get with an Orlando REALTOR.
The estimated days of home ownership between the two is extremely high compared to the actual numbers. On average, Offerpad states it takes 30 days for them to close on your house. But when going with a real estate agent, they state it takes 90 days until you go under contract and an additional 50 days until you close. The truth of the matter is that in the Orlando real estate market, the average amount of time until you go under contract is only 55-60 days and at The Miller Realty Group our average so far for 2018, with over 18 homes sold throughout the Orlando area, is 30 days. The average days to close with an Orlando REALTOR is an additional 30 days, which totals to 60 days to sell your house. So this is much lower than the 140 days which they are stating it takes on average to close with a traditional real estate agent.
So if you add it all up, if you were to sell your house to Offerpad, it would cost you and additional $44,000! So you have to ask yourself, the $ 44,000 it's going to cost you. I would venture to say...probably not!
When it comes down to it, when you use Offerpad, that convenience is costing you probably more money then you would be willing to pay. If you think about it, when you listen to their ads on the Orlando radio and TV, they aren't telling you that you are going to save you money. They are selling their convenience! No matter what, before you decide to do anything, always make sure that you speak to an Orlando REALTOR. This will allow you to compare the two options so you can see which one works best for you. -- we would be happy to assist you!
As always, we are here to help you! Please feel free to Contact Us.