Question 1

How Much Does Opendoor Charge in Service Fees?

Accepted Answer

Opendoor charges a 5% service fee on the gross offer price, plus a separate repair deduction averaging 1-2% of the offer. Closing costs run 1-3% on top. Total effective discount to retail typically lands between 8-11%, depending on home condition and local market dynamics.

Question 2

What's the Average iBuyer Service Fee in 2026?

Accepted Answer

iBuyer service fees in 2026 range from 5% (Opendoor) to 6% (Offerpad), based on gross offer price. Add 1-2% in repair deductions and 1-3% in closing costs, and the typical all-in effective discount to retail value lands between 8% and 13% across major iBuyers.

Question 3

Are There Hidden Fees with Cash Offer Programs?

Accepted Answer

Most major cash-offer programs disclose fees upfront in the offer letter, but two common surprises exist: repair deductions calculated after inspection (often 1-3% of offer), and reduced closing-cost coverage compared to a traditional sale. Read the PSA carefully — fee schedules are typically buried in section 5 or 6.

Question 4

Does Opendoor Pay Closing Costs?

Accepted Answer

Opendoor pays standard seller closing costs (title insurance, escrow fee, recording fees) but does not pay buyer-side concessions, HOA transfer fees in some states, or wire fees. Closing costs total typically 1-3% of sale price, which is comparable to a traditional sale and is separate from Opendoor's 5% service fee.

Question 5

How Much Less Than Market Value Do iBuyers Pay?

Accepted Answer

iBuyers typically offer 88-92% of what your home would sell for on the open market. That gap covers their 5-6% service fee, 1-2% in repair credits, holding costs while they resell, and target profit margin. The discount is wider on homes needing significant repairs and tighter on move-in-ready properties.

Question 6

What's the Effective Discount of a Cash Offer vs MLS Listing?

Accepted Answer

A traditional MLS sale nets about 94-96% of retail value after the 5-6% combined agent commission. Cash offer programs typically net 87-92%, meaning sellers leave 2-9 percentage points on the table. For a $400,000 home, that's $8,000-$36,000. The tradeoff is speed: 2-3 weeks versus 45-90 days.

Question 7

Do I Pay Realtor Commission with an iBuyer?

Accepted Answer

No. iBuyers like Opendoor and Offerpad buy directly from you with no listing agent or buyer's agent involved. You skip the typical 5-6% commission. The service fee they charge (5-6%) replaces commission economically, so your net dollars don't usually change — but you avoid the showings, negotiations, and timing risk.

Question 8

How Much Do Cash Offer Plus Programs Cost?

Accepted Answer

Cash Offer Plus programs typically charge a 4.5-7% base fee plus 0.5-0.85% per month in carry while the home is on retail market, capped at 3-5% total. Compared to a 5-6% MLS commission, total cost is usually similar — but you get an upfront cash advance of 70-85% and then a true-up after resale.

Question 9

Are HomeLight Simple Sale Fees Negotiable?

Accepted Answer

HomeLight Simple Sale fees are quoted by individual partner investors, so there's some variance — but the program-level structure (firm 70% upfront, ~6.5% base fee, split waterfall) is not negotiable through the program itself. If you want lower fees, the negotiation has to happen by getting competing offers and using them as leverage.

Question 10

What Does "Repair Deduction" Mean on an Opendoor Offer?

Accepted Answer

Opendoor's repair deduction is a credit Opendoor takes back from your offer after their inspection identifies needed work — roof, HVAC, foundation, plumbing, cosmetic issues. It typically lands between 1% and 3% of the offer but can exceed 5% on older or distressed homes. You can either accept it or cancel within the 2-day window.

Question 11

Is Opendoor Legit or a Scam?

Accepted Answer

Opendoor is a legitimate public company (NASDAQ: OPEN) that has transacted with over 200,000 sellers since 2014. The model is real: they buy your home, take a service fee, do light repairs, and resell on the open market. Whether their offer is right for you depends on speed-versus-net-proceeds math — not legitimacy.

Question 12

Is HomeLight Simple Sale Legit?

Accepted Answer

Yes. HomeLight is a venture-backed real estate technology company (founded 2012) that operates Simple Sale as a network of vetted cash buyers. The program is real and transacts thousands of homes per year. Reviews are mixed on whether sellers get the best price — but the program itself is legitimate, not a scam.

Question 13

Is Offerpad a Real Company?

Accepted Answer

Offerpad is a public company (NYSE: OPAD) founded in 2015 and operating as one of the two largest iBuyers in the U.S. They have purchased over 35,000 homes and are subject to public-company disclosure rules. Like any iBuyer, they buy at a discount to market in exchange for speed and certainty.

Question 14

Are Cash Offers from iBuyers Below Market Value?

Accepted Answer

Yes — typically 8-13% below what your home would sell for on the MLS. The gap covers the iBuyer's service fee, repair credits, holding costs, and profit. This isn't a scam; it's the cost of trading time and certainty for dollars. Whether it's worth it depends on your timeline and the local market's strength.

Question 15

Can I Trust Zoom Casa Cash Offer Plus?

Accepted Answer

Zoom Casa is one of the better-regarded Cash Offer Plus programs by independent reviewers, scoring 9.3/10 in our methodology. Their PSA is among the clearest in the category, they pay 100% of the resale overage to the seller, and the seller keeps their own agent. As with any program, get competing offers before committing.

Question 16

Are iBuyer Offers Binding Once Accepted?

Accepted Answer

iBuyer offers become binding to the iBuyer when you sign the purchase agreement — but most include an inspection-contingent cancellation right (Opendoor: 2 days; Offerpad: 5 days). After the contingency window expires, both sides are committed. You as seller typically have the right to cancel at any time before close, often with a small fee.

Question 17

What Happens if Opendoor Cancels After Inspection?

Accepted Answer

If Opendoor cancels within the 2-day inspection contingency, you walk away with no penalty — but your home has been off market for 2-3 weeks and you'll need to re-list. The cancellation usually happens because the repair deduction Opendoor wants is more than they're willing to absorb. You can choose to accept the lower offer or move on.

Question 18

Is Homeward a Good Trade-Up Program?

Accepted Answer

Homeward is well-suited for buyers who have a current home to sell AND need to buy a new home first. They underwrite permissively, fund the bridge themselves, and let you move in before listing. The 1.9% up-front fee plus monthly carry adds 2.5-4.5% to the total transaction — reasonable if you genuinely need the timing flexibility.

Question 19

Should I Trust a Cash Offer That Comes by Mail?

Accepted Answer

Be cautious. Cash offers arriving as direct mail or postcards are usually from small investor groups or wholesalers — not regulated iBuyers. Some are legitimate, many lowball aggressively (offering 50-70% of market value). Verify the company online, check BBB rating, and always get at least two competing offers before signing anything.

Question 20

Can I Back Out of an Accepted Cash Offer?

Accepted Answer

In most cases yes, until close, but you may owe an earnest money deposit or cancellation fee depending on the program and stage. iBuyer contracts typically give sellers the right to cancel at any time before close, sometimes for a small fee ($1,000-$2,500). Read your PSA carefully — section 7 or 8 usually covers cancellation rights.

Question 21

How Fast Can I Close with Opendoor?

Accepted Answer

Opendoor typically closes in 10-14 days from accepted offer, though faster closes (7 days) are possible if title is clean and you don't need post-close extended stay. The fastest path: accept the offer immediately, schedule the inspection within 48 hours, and have your title documents ready before signing.

Question 22

How Long Does an iBuyer Offer Take?

Accepted Answer

Most major iBuyers return an initial offer within 24 hours of submission. The final offer (after virtual inspection) comes 24-72 hours later. From accepted offer to close is typically 10-21 days. Total seller timeline from request to wire: 14-30 days.

Question 23

Do I Have to Move Out Immediately After an iBuyer Close?

Accepted Answer

No. Most iBuyers offer an extended-stay or leaseback option: Opendoor up to 17 days, Offerpad up to 90 days (Free Local Move). You'll typically pay a daily holdover fee (or it's deducted from proceeds). Negotiate this BEFORE accepting the offer — extended stay is much easier to add at offer stage than after close.

Question 24

What if My House Doesn't Appraise for an iBuyer Offer?

Accepted Answer

iBuyers don't require traditional appraisals — they use their own algorithmic valuation. If the algorithm comes in lower than you expected, you can either accept the lower number, negotiate (provide comps), or walk away. The offer is the offer; there's no "appraisal contingency" in the traditional sense.

Question 25

Can I Keep My Agent with a Cash Offer Plus Program?

Accepted Answer

Yes. The defining feature of Cash Offer Plus programs is that the seller keeps their own listing agent on both the first close and the retail resale. Compare to direct iBuyers (which buy and resell without an agent) or trade-up programs (which use their own brokerage). For sellers with a trusted agent, Cash Offer Plus is usually the better fit.

Question 26

Do I Need an Inspection if I Sell to an iBuyer?

Accepted Answer

Yes. The iBuyer will send their own inspector after offer acceptance. You don't need to commission your own (though you can). The inspector's report drives the repair deduction, so contesting line items with documentation (recent receipts, contractor estimates) can reduce that deduction.

Question 27

What Documents Do I Need to Sell to a Cash Buyer?

Accepted Answer

Standard documents required: government-issued ID, title or deed, HOA disclosure (if applicable), seller property disclosure, mortgage payoff statement (if there's a loan), and tax records for the prior 2 years. Title company handles most of this; you'll get a checklist when you accept the offer.

Question 28

How Does the Cash Offer Plus Waterfall Work?

Accepted Answer

You receive 70-85% of appraised value at first close. The program lists your home on the retail market with your agent. When it sells, the program takes its base fee (4.5-7%) and accrued carry from the gross. Anything above that threshold — the "overage" — gets forwarded to you within 30 days. Most programs give 100% of overage; some split 80/20.

Question 29

When Do I Get Paid with a Cash Offer Plus Program?

Accepted Answer

Two payments: 70-85% wires at first close (typically 14-21 days after accepting). The overage from resale wires 30-60 days after the retail sale closes (median 45 days after first close, so ~60-90 days total to full settlement). Programs that take longer than 90 days to settle the overage should raise red flags.

Question 30

How Do I Compare Cash Offers Properly?

Accepted Answer

Get at least three competing offers from different program categories (e.g., one iBuyer, one Cash Offer Plus, one local investor). For each, compute: gross offer minus service fee minus repair deduction minus closing costs = net to you. Don't compare headline offer numbers — compare net proceeds. The spread between best and worst typically runs 5-10% of home value.

Cash Offer FAQ

Money & Fees

Legitimacy & Trust

Process & Timeline