Offerpad joins the instant offer fray in metro Denvers real estate market – The Denver Post

Drawn by one of the hottest residential real estate markets in the nation, Offerpad plans to join the crowded scrum of companies in metro Denver providing sellers an instant offer on their homes.

Success for Offerpad is capturing markets that provide growth for not only the services and products we provide today, but those with the right environment to support dynamic growth as we continue to rapidly innovate offerings, Matt Brohn, Offerpads vice president of strategic initiatives, said in a release.

After studying the trends to understand where its business model might work best, the company targeted Denver and Nashville for an expansion early next year, adding the cities and their suburbs to the 830 locations where the company is already active.

Offerpad, based outside of Phoenix, was one of the early pioneers when it came to using technology to give sellers a quick bid on their homes. Rather than having to deal with getting a home ready for sale, a parade of potential buyers dropping by and the ping pong game between agents hammering out the fine print, working with an iBuyer promises a much more direct approach.

A seller requests a bid. An iBuyer offers one. The price is then adjusted by the cost of repairs estimated after a visit. Closing can happen within a few days or it can be timed to when the seller needs it, like the completion of a home under construction. The iBuyer handles the repairs and sells the home.

Opendoor and Zillow Offers opened shop in Denver in October 2018 and were joined the following May by RedfinNow and Boulder-based 8z Real Estate. The firms were gaining traction in the market until the pandemic hit. Prices were hard to pin down in March and April, and some sellers had their offers rescinded, leaving them high and dry.

Since this summer, the metro Denver market has run hot, with most properties under $750,000 often selling within two weeks, often in a weekend. That has taken away a key advantage of working with iBuyers, a quick turnaround.

The consumer proposition of an instant sale is a lot less compelling given how hot the market is. Consumers wont want to leave money on the table with just one offer, and are more inclined to list traditionally to get top dollar for their home, said Mike DelPrete, a real estate technology strategist.

He adds theres always demand for an instant sale, but the national numbers are showing it is a lot less now than it was pre-pandemic.

Offerpad plans to locate an office in Denver and is actively recruiting real estate talent and home renovation vendors. Those opportunities will be listed on the companys Careers page once theyre made available.

Original post:
Offerpad joins the instant offer fray in metro Denvers real estate market - The Denver Post