Offerpad type companies?

[mpkcapt]

Id be interested in feedback from anyone thats used Offerpad, OpenDoor or similar companies to sell their home.
My wife & I are 65, retired, have no mortgage and are looking to downsize from a 3K SF $500K home. We would like to sell before we buy to have the cash & time to get what we want. Seems like these OfferPad-type companies give you the flexibility to stay in your home after you sell it if needed which is a nice option to have.

I’d consider buying first if we found the right place but dont want to raid my qualified retirement investments or cut myself too short on my non-qualified investments that Im currently living on. I also looked into getting loan pre-approval but even though I have almost $2M in total qual & non-qual investments, the banks dont care and only wanna see an income stream (ie pension, SS, etc) which I dont currently have, to approve a loan!
Anyone feedback would be appreciated.

 

[cyber888]

One of these companies recently bought a house in my neighborhood for $450K and then sold it for $550K within 2 months.
The owner of the house was a realtor. I think they benefitted by not having to pay much in commission fees.
The buying company did some renovation, including a new HVAC. I think they netted about $80K for 2 months turn-around. Not bad. I think it was Offer Pad

 

[freedomatlast]

Based on personal experience, list it yourself for free on Zillow. We included many great pictures, colorful descriptions, and a video made by DW. Ours sold quickly for asking price using only Zillow during the spring of 2020 during the height of the Covid panic just before the housing market went wild. I wouldn't hesitate to go this route again. The companies OP mentioned are going to lowball you on an offer. As OP is considering, we bought the new place first for cash, took our time moving then listed the old place which sold promptly with zero commission dollars spent.

 

[bobandsherry]

When I sold my home last year I looked into Offerpad. I saw their offer and laughed. Sold my home a week later through a regular Realtor for $150k more than their offer.

That said, another home in the same community was sold to Offerpad a month later. Offerpad did minor repairs and listed house a month later for $120k above what they had paid. Now here's where it gets interesting, it's still not sold and its now only $20k above what Offerpad paid.

While Offerpad doesn't require you to move out immediately, it's just an extended close (up to 60 days) and then they let you stay for a few days past closing to coordinate a move out. However, your offer is adjusted accordingly.

Based on my experience, unless your home is in disrepair or you are desperate and need to sell immediately take a pass on Offerpad.