By Callan Smith | Rose Law Group Reporter
Selling a home often is a frustrating, drawn-out affair. Offerpad is trying to change that.
With the Web service, sellers request an offer for their home, and 24 hours later, offers are returned.
Offerpad charges an initial six percent, a charge on par with a typical real estate agent’s fee. In addition, there is a three percent fee for servicing and expenditures, totaling nine percent to sell the home through Offerpad.
If the home needs of repairs, the buyer discloses any such issues. Once the offer is accepted, an inspection takes place within 10 days, looking for major problems such as heating, cooling, plumbing and structural issues, flooring or the need for a new coat of paint. Offerpad then sets up closing, which can happen as quickly as in five days.
Derek Schairer, building alliance director with Offerpad gave an overview of what happens when there is a discrepancy between the seller’s initial disclosure and the inspection.
Let’s say a hypothetical buyer failed to disclose a much-needed repair, a leaky roof for example. When the leaky roof is found, Offerpad notes the discrepancy and sends an amended offer back to the seller, who can either accept or walk away.
Making things more interesting is the partnership Offerpad has developed with builders at no charge. Schairer says the service has been “well accepted by home builders and even investors, people who are knowledgeable about the value of real estate.”
“Where we really shine is with home builders,” he said. Some of the builders working with Offerpad are Woodside Homes and Taylor Morrison, among others.
The builder can be a part of the transaction, helping to ensure closing dates are coordinated.
Potential buyers can manage a quicker closing to take advantage of time- sensitive builder incentives. Closing dates can go out nine months to partner builders only, allowing buyers to stay in their current homes until the next one is available.
Schairer said Offerpad is not a house flipper, but rather a service provider.
Offerpad is available in Phoenix, Las Vegas, Salt Lake City and Tampa. California will be coming on line soon, with a goal of taking the service nationally, Schairer said.