Top 8 Offerpad Competitors & Alternatives

Offerpad is a real estate company, known as an iBuyer, that utilizes technology to purchase and sell homes online.

The company, which is headquartered in Chandler, Arizona, was founded in 2015 by Brian Bair and Jerry Coleman.

As an iBuyer, Offerpad utilizes algorithms and other types of technology to assess the attractiveness of a purchase. Additionally, the company only deals in certain types of properties, namely the ones with less price volatility.

More precisely, this means Offerpad purchases homes that are single family residential homes (including condos or townhouses), were built after 1960, are less than one acre in lot size, and cost less than $1 million (although exceptions are made in certain markets).

The usage of technology and well-defined parameters (alongside hundreds of millions in funding) allows Offerpad to quickly provide sellers with cash offers – sometimes within 24 hours. Offerpad provides two solutions of selling your home, namely EXPRESS and FLEX.

After making potentially necessary renovations, the home is listed on Offerpad’s website and ready to be purchased. Its consistent growth as well as strong demand for real estate has enabled Offerpad to go public back in September 2021.

Financially, the company seems to be well equipped to not only become one of the leading iBuyers but most successful real estate businesses in the United States. In 2021, Offerpad became the first known iBuyer to turn a profit for the year, which equaled $6.5 million for the year.

Revenue-wise, it managed to turnover around $2 billion over the same time span. Investors have rewarded Offerpad’s execution with $355 million in equity-based and $1.5 billion in debt-related funding. Offerpad managed to raise another $650 million during its IPO.

Throughout 2021, Offerpad purchased 9,023 homes and sold 6,373 over the same period. Over 100,000 homes have been sold by the company since it was founded in 2015. More than 400,000 people visit its website every month to check available offers.

The methodology with which competitors of Offerpad are ranked is based on publicly available information. Data points such as the revenue generated, the number of houses in its inventory or purchased in a given time period, monthly website visitors, number of agent partners, and anything else in between will be considered.

This analysis, in order to ensure comparability, looks at potential competitors in both the iBuyer as well as real estate listing industry. Offerpad lists houses via its own listing section. It has to be noted, though, that not all of those houses were initially purchased by Offerpad.   

Additionally, only competition within the United States will be taken into account since that is the only country that Offerpad purchases and lists homes in. 

Lastly, this analysis should not be seen as an endorsement of any company or service. It merely acts as a summary of all the competition that Offerpad faces right now.

So, without further ado, let’s take a closer look at the top 8 competitors of Offerpad.

1. Opendoor

Headquarters: San Francisco, California, United States

Founder(s): Eric Wu, Ian Wong, JD Ross, Keith Rabois

Year Founded: 2014

Opendoor is the pioneer and undisputed leader in the iBuyer industry. Co-founder Wu lives and breathes real estate. He began to invest into real estate when he entered college. By the time he graduated from university, he owned around 25 homes in the Phoenix area. Prior to launching Opendoor, he sold another startup (RentAdvisor.com) to Apartment List.

Opendoor operates just like any other iBuyer in that it makes quick, non-binding cash offers on houses that fit certain parameters (built after 1960, single-family home, etc.). Owners don’t need to sell their house to Opendoor but can simply list on its platform. Consequently, users can also purchase homes and apply for various financing options.

Opendoor went public in December 2020, which netted the company $1 billion. It raised another $1.5 billion during its time as a startup. In 2021, Opendoor generated $8 billion in revenue. Furthermore, the company purchased around 37,000 homes and sold close to 22,000 homes over the same time period.

Today, Opendoor operates in 50 markets across the United States. Its website is visited 2.5 million times every month while the firm employs close to 3,000 people.

Sources: Crunchbase, Opendoor, Similarweb     

2. Redfin

Headquarters: Seattle, Washington, United States

Founder(s): David Eraker, David Selinger, Michael Dougherty

Year Founded: 2004

Redfin is a real estate brokerage that has expanded into iBuying back in 2019. Prior to that, the firm was primarily known for being one of the leading real estate listing sites. Redfin, furthermore, directly works together with real estate agents who accommodate both buyers and sellers during the process.

The core business, which also includes mortgages, is available in over 100 markets across the United States and Canada. Those markets are served by the more than 6,000 people that Redfin employs.

Interestingly, Redfin’s iBuyer division, which is called RedfinNow, was launched in partnership with Opendoor. And unlike Opendoor, Redfin has taken a more measured approach with its home purchasing efforts.

RedfinNow is currently only available in 15 states. The company does unfortunately not disclose the exact number of homes it purchases or sells. However, it has hinted that number is somewhere in the low four digits on an annual basis.

Where Redfin shines, though, is its other business lines. The Redfin platform itself is visited over 44 million times – each month. Many users visit the site to get an estimate for their homes or simply check the prices of homes in proximity.

Redfin works together directly with real estate agents who help customers find homes that fit their budget. In fact, Redfin currently accounts for 1.15 percent of all real estate sales in the United States, which is equal to around $52 billion in overall transaction volume. 

The company now generates annual revenues of $1.9 billion of which roughly a quarter can be attributed to its iBuyer division. The bulk of Redfin’s revenue still comes from the comparatively low commissions that it charges.

Sources: Redfin

3. Knock

Headquarters: New York City, United States

Founder(s): Jamie Glenn, Karan Sakhuja, Sean Black

Year Founded: 2015

Knock, unlike many of the other companies on this list, actually does oftentimes not purchase homes but utilizes its Home Swap process to facilitate trades between home owners. Home owners first provide all relevant information. Knock then checks if they pre-qualify for a mortgage.  

If a buyer qualifies, he or she will be able to use the loan to purchase a new home. Knock will then list the buyer’s old home for sale. If the home is not sold within six months, it is purchased by Knock outright.

Consequently, the buyer shoulders the cost of any mortgage payments, repair costs, and other any expenses involved in the process. Knock also charges a ‘convenience fee’ of 1.25 percent on top of the other costs a buyer incurs.

Knock is currently available in 75 markets across the United States and has raised $654 million in funding thus far. Unfortunately, the firm does not disclose how many homes have been purchased and sold via its platform.

Despite those funding numbers, Knock had its fair share of problems as well. Founded by former Trulia executives, the company scrapped its plans to go public in March 2022. Additionally, it laid off 50 percent of its workforce, effectively reducing it from 250 people to around 125.

Sources: Crunchbase, Knock

4. Orchard

Headquarters: New York City, United States

Founder(s): Court Cunningham, Phil DeGisi

Year Founded: 2017

Orchard, formerly known as Perch, is another iBuyer that is currently available in 13 cities across the United States. The company has three core services, namely Move First (buying and selling a home), Buy with Orchard (simply purchasing a home), and List with Orchard (only wanting to sell).

For example, Orchard accompanies buyers throughout the purchasing process. It pairs buyers with actual real estate agents who tour homes that meet a buyer’s criteria. Orchard’s real estate platform, furthermore, lists all available homes in a buyer’s area.

Buyers can either purchase an existing home or make a non-contingent offer on a new build. Orchard, thus far, has facilitated transactions for more than 1,000 buyers and sold homes worth over $1 billion since it has been founded.  

Its business model is similar to other iBuyers, too. Orchard charges a 6 percent commission that is paid by the seller. Customers can, furthermore, compare various loan options on Orchard’s website.

During the summer of 2021, Orchard was on the edge of going public, but the founding team decided to postpone a potential IPO and raise a new round of venture funding instead.

Backers have invested a total of $472 million into Orchard, which is currently valued at $1 billion. Orchard employs over 800 people while its website is being visited 400,000 times per month.

Sources: Crunchbase, Orchard, Similarweb

5. Zillow

Headquarters: Seattle, Washington, United States

Founder(s): Lloyd Frink, Rich Barton

Year Founded: 2005

Zillow was one of the leading iBuyers in the United States until it wasn’t. Back in 2018, the firm launched a division called Zillow Offers through which it began scooping up homes. In theory, Zillow was well equipped to become a significant player in the niche.

Its Zestimate, now a frequent source of joy and desperation for many (upcoming) homeowners, already provided the company with millions of data points on real estate prices. On top of that, it’s the most visited real estate website in the United States with 36 million unique monthly visitors.

In November 2021, Zillow announced the shutdown of its iBuyer division while laying off 25 percent of its workforce. Nevertheless, for the time being, it did become a significant player. In 2021 alone, Zillow Offers generated close to $6 billion in revenue. Over 18,000 purchased homes had to be sold by the company as a result of the shutdown.  

Zillow, regardless of its problems in the iBuyer niche, remains a fierce competitor to Offerpad and other iBuyers. It offers options to purchase, rent, and sell on top of home loans and the ability to directly work together with an agent.

The company went public back in July 2011 and has since scooped up competitors such as Trulia ($3.5 billion in July 2014) or Naked Apartments along the way. In 2021, Zillow generated $8.1 billion in annual revenue, an increase of 144 percent. However, Offers alone caused losses of $881 million.

Sources: Crunchbase, Statista, Zillow

6. Compass

Headquarters: New York City, United States

Founder(s): Mike Weiss, Ori Allon, Robert Reffkin, Ugo Di Girolamo

Year Founded: 2012

Compass is a real estate brokerage that, much like Offerpad, utilizes technology to aid agents during the sale of a property. More precisely, the company, in 2021, became the leading brokerage by sales volume in the United States.

It has managed to do that by providing real estate agents with industry-leading tools and education. For example, it has developed a platform called Compass Collections, which allows agents and clients to collaborate in real-time. Agents are, furthermore, provided with a plethora of data and reports.

Compass now works together with 26,000 agents across the United States where it’s available in 69 markets. It has since expanded into new types of business lines. For example, Compass works together with athletes and celebrities to help them list or sell their homes. Moreover, it is now leading real estate development projects in the world’s leading markets including New York City.  

The continued success has enabled Compass, which has raised $1.5 billion during its life as a startup, to go public in April 2021. The IPO netted Compass another $450 million. In 2021, the brokerage generated $6.42 billion in revenue.  

While still not profitable, it has facilitated 225,000 transactions worth $254 billion in 2021 alone. Its website, which lists all of its available homes, is visited six million times every month.

Sources: Crunchbase, Compass, Similarweb, The Real Deal

7. HomeLight

Headquarters: San Francisco, California, United States

Founder(s): BCBroussard, Drew Uher, Jason Zhang

Year Founded: 2012

HomeLight connects home buyers and agents to make the process of purchasing or selling a home quicker and easier. Its agent matching system will find the perfect match for any customer, based on their location and stated preferences.

The service uses a mixture of factors to match customers, including the price range, location, timelines and more. HomeLight makes money by keeping a portion of the agent fee that the seller pays.

Consequently, HomeLight does not purchase homes like Offerpad but instead connects sellers to a pool of pre-approved cash buyers. It states that homes on its platform can be sold in as little as 10 days. Much like Offerpad, HomeLight provides sellers with non-binding offers.

HomeLight, furthermore, partners with 28,000 real estate agents across the United States. Over $1 billion of real estate transactions are conducted on its platform every year. The firm was projected to reach $300 million in revenue in 2021.

HomeLight has raised over $627 million in venture funding while currently being valued at $1.6 billion. Its website accounts for over 1.5 million monthly visitors. So far, HomeLight has worked together with more than one million clients.

Sources: Bloomberg, Crunchbase, HomeLight, Similarweb

8. Trulia

Headquarters: San Francisco, California, United States

Founder(s): Alejandro Foung, Pete Flint, Sami Inkinen

Year Founded: 2004

Trulia is the second most popular real estate site in the United States with 23 million unique monthly visitors. It is primarily known for being a listing site on which owners and buyers can offer their homes for purchase, rent, or sale.

The founders, who met during their MBA at Stanford, started the company after being frustrated with not being able to find the necessary information they need about local real estate. They managed to raise close to $35 million in venture funding and took the company public back in September 2012 (netting them another $102 million during the IPO).

A mere two years later, they sold the company to Zillow for $3.5 billion. Together, the two firms managed to become far and ahead the two most popular real estate platforms in the United States.

Unfortunately, Zillow does not explicitly disclose revenue or profit figures for Trulia. It currently employs around 250 people.

Sources: Crunchbase, LinkedIn

Honorable Mentions

Real estate is a $43 trillion market in the United States alone. Naturally, this attracts thousands of companies that try and carve out a niche for themselves. As a result, Offerpad competes with many other firms that facilitate real estate transactions on behalf of customers.

For example, there are a variety of smaller-scale iBuyers that didn’t make the list (mostly because of low transaction volumes). Examples include Keller Offers, We Buy Ugly Houses, ExpressOffers, RealSure, and more.

Additionally, there is a plethora of listing sites that all garner millions of monthly visitors. They normally do not actively engage with buyers nor sellers but are still important parts of the ecosystem. Examples include Realtor.com, the previously mentioned Yahoo! Homes, or ApartmentGuide.

Offerpad also competes against real estate brokerages. Apart from the above-mentioned Compass, there are other significant players such as the Realogy Brokerage Group (around $244 billion in annual volume), HomeServices of America (~ $200 billion), and eXp Realty (around $180 billion).

This certainly doesn’t even include all the smaller-scale brokerages and one-man operations that are all gunning for the same types of customers.

Sellers can, furthermore, decide to list their homes as ‘FSBO’ (for sale by owner). That means they list and sell their homes without the usage of an agent (and thus avoid paying seller fees).

Apart from the established platforms like Zillow, there are also dedicated FSBO websites such as Houzeo.com or FSBO.com. Some homeowners even use classified sites like Craigslist, Facebook’s Marketplace, or OfferUp to gauge demand.

Hi folks, Viktor checking in! Years of experience in various tech-related roles have led me to start this blog, which I hope provides you with as much enjoyment to read as I have writing the content.